Past bad credit rating and buying through shared ownership!

DVardysShadow

scatz wrote: »

... Lastly, the mention of equity is rather annoying me! As I may have already mentioned, some people buy a mortgage in the hope it will rise in price so they can sell on at a profit and move to a larger property or take the money........not what we want. We have our family so wouldn't need to up size and we are not interested in making money out of a house as we merely wish to buy for a life long home!

I think that your motivation for buying a property as a home rather than as a profit vehicle is great.

But if there is one word you should take away with you from this discussion, it is 'equity'. This is not just the word for investors, it is the word for you in your position. When you buy a house you are betting your socks on the future, whether for living in or as an investment. If you start without equity, you are betting your shirt and pants too.

Blacksheep1979

scatz wrote: »

However, a shared ownership repayment mortgage (50% ownership) of around £85k would mean a deposit of £2250 would be required (achievable) and repayments, rent and service charges of approximately £800pcm would leave us with circa £400pcm on top of a slight bit extra where I rounded all our other expenditure up to the nearest £10 and more in one case! So, £100pcm for those luxuries and £300+pcm saved (towards staircasing perhaps)!

You're only going to put 2.65% deposit down? Which company is giving out those mortgages? Is that £400 taking into account everything - I mean council tax, electric, gas, travel card, petrol, tax, mot, insurance (car + house), servicing car, mobile phone, internet, holidays, clothes, vets bills, birthdays/xmas etc?

Really I'd expect a minimum of a 10% deposit so 8.5k.

poppysarah

scatz wrote: »

Thank you all for your input but I'm not going to continue with the thread. It's quite obvious for whatever reason that the question I asked isn't being answered so I believe it best all round if we finish it.

If you asked the question how fast will I have to drive to leave the earth's orbit ... do you not think it would be sensible if people told you your gas tank would be empty long before you got to the speed you'd need?

chiki1

the number of nasty, aggressive posts on here shows that these people are quite clearly out for their own agenda. probably just a bunch of independently wealthy people who know they can use their trust funds or mummy & daddy to buy their house any time they like.

seriously, you're a nasty bunch. if you did have any good advice to offer, it's been overshadowed by aggressiveness. scatz, if you 're anything like me you'll not be back here. i don't think these people are interested in offering advice or help. they're hell bent on putting people down. just do what you think is right, and get information elsewhere.

Running_Horse

With all due respects, the OP asked how to buy a shared ownership property with a £2,000 deposit and a dodgy credit history. There is a limit to how much you can sugarcoat the fact it can't be done.

As for nasty and aggressive, I don't have a trust fund, or rich parents, or independent wealth. Most people here have worked their socks off for what they have, and to suggest otherwise is offensive.

I notice you have nothing whatsoever to say to help the OP achieve their dream.

poppysarah

chiki1 wrote: »

the number of nasty, aggressive posts on here shows that these people are quite clearly out for their own agenda.

That own agenda includes hoping the country doesn't start lending 100% mortgages to people without checking they can actually afford it or even manage their own finances.

If that's AGGRESSIVE then I suspect you should get out a bit more.

DVardysShadow

chiki1 wrote: »

the number of nasty, aggressive posts on here shows that these people are quite clearly out for their own agenda. probably just a bunch of independently wealthy people who know they can use their trust funds or mummy & daddy to buy their house any time they like.

seriously, you're a nasty bunch. if you did have any good advice to offer, it's been overshadowed by aggressiveness. scatz, if you 're anything like me you'll not be back here. i don't think these people are interested in offering advice or help. they're hell bent on putting people down. just do what you think is right, and get information elsewhere.

Don't be so booldy daft.

I'll agree there have been a few things said which could have been better expressed. But no one is putting anyone down. I have bought with very little to my name and I know how financially vulnerable you are when you start.

Advising scatz to do as he feels is right without the benefit of the advice from people who have bought 100% and who have faced the same risks is just ignorant bravado.

the_quick

I read all 4 pages and I agree most of the comments were aggressive and telling basically you are not part of us elite who bough their houses with own well paid earnings.
There are people not like you who will earn less than you do, not everyone can be more than average , especially these days where people are worrying about jobs they have atm.

You could be more polite and understanding. There will be people like this person and as everyone else would like to have own place, where is the crime here.

100% mortgage not always has to be bad thing, if people are properly checked if they can afford repayments why not. The biggest problem for FTB is deposit these days, they can afford to pay mortgage monthly payments they just can't raise deposit as soon as they would like to. And now is the best time to buy, low percentage and house prices are falling (no one knows when they start raising).

I saw some of you gave links to cheap properties - they cheap for a reason. Bad schools, council estates etc. How do you think this would shape those children - would you like to live there and raise your children in high crime neighbourhood - I think not.

poppy10_2

the_quick wrote: »

I read all 4 pages and I agree most of the comments were aggressive and telling basically you are not part of us elite who bough their houses with own well paid earnings.

Nobody's said anything remotely like that on this thread.

Personally, although I earn a good salary, I have chosen not to buy a house. It makes financial sense in my circumstances as I pay much less in rent for my current house than I would spend on mortgage interest for a similar property, and with house prices mostly static or falling there is no capital appreciation to make it worth the monthly shortfall.

That doesn't mean that I or other people on this thread are opposed the idea of "non-elite" people wanting to own their own home. The point is that in the specific set of circumstances described in the OP's post, it wouldn't make any financial sense, and could lead them into serious difficulties. People have been "polite and understanding" as you say, but when there's potentially so much at stake it's better to be honest with someone who has come on here to ask for advice, rather than just give them big internet hugs and tell them whatever they want to hear, even if it lands them in big trouble down the road.

100% mortgage not always has to be bad thing, if people are properly checked if they can afford repayments why not.

100% mortgages leave you vulnerable to negative equity if house prices fall even slightly. You might be able to afford the repayments now, but if interest rates rise, or if your circumstances change, that might not be the case. What if you lose your job, or have to take a pay cut, or want to start a family. If you have to move house for work or personal reasons, being trapped in negative equity could be a nightmare scenario.
If people can't demonstrate to themselves that they can manage their finances enough to save up a deposit, then maybe it's a sign that they shouldn't be taking on a massive financial commitment stretching into hundreds of thousands of pounds at the moment. That's not elitism, it's just common sense. If your finances are so tight that don't have the slack to set aside a little money each month to save for a deposit, then you could be vulnerable to interest rate rises and other costs knocking you completely off-budget.

The only way round this is to increase your income or cut your expenditure. Taking on unaffordable debt that leaves you stretched is not going to be the long-term answer.

jc808

Why did The_quick bump a 3 month old thread?