Is owning a house a possibility

slscarborough

I am 36 years old, my partner is 29, we have 2 young children and live in a housing association home.

We believe our house to be worth no more than 160,000 and we would get 35,000 discount.

Our thinking is that if we clear our debts within 2 years and at that point my son from our previous marriage will have left college and I will no longer be required to pay csa we should then be able to save a deposit and buy our HA home.

I have been looking at how much a approx 115,000 mortgage will cost us each month but I have no idea of interest rates. Was looking at the worst case scenario??

Between us at the moment we earn 35000 a year with no childcare costs - however in another 2 years our youngest will be at school and Oh will be able to work more hours.

Any advice welcomed!

slscarborough

I have done a soa and we have 100 surplus every month and that is with current debt repayments of 500 a month and csa of 160 a month. All debts will be paid well within 2 years and then we will have 760 surplus. we are already paying over 400 a month in rent. I am also expecting a pay rise this month that at worst will add another 50 a month and my OH has the option to work extra shifts.

The_Palmist

It is definitely a possibility, you can check interest and payments on any of the mortgage calculators available online, try bbc mortgage calculator and experiment with interest rates. Also check my4walls or home buy direct for any FTB schemes.

slscarborough

I cant quite believe it as we were in a very different position only a few months ago and I was starting to think I would never own a house. Would it still be possible to for me to get a 25 year term mortgage at 40? I have played with the mortgage calculators and all seems possible. Will have a look at the websites you have listed. Thank you x

Rockporkchop

Anything's possible but to be honest I wouldn't get too excited about it as so much could change before you are in a position to buy - the government might reduce the discount again, for a start.

Not sure where you get the £35k discount from? I think that Right to Acquire discount (HA) is only £9k in Scarborough, and Right to Buy discount (council) is £24k.

Yorkie1

It may also be the case that it takes time for your credit score to be restored after you've paid off your debts, which may impact on how lenders view any application for a mortgage.

slscarborough

I live in essex where the maximum right to buy discount is £35,000 - so assuming that doesnt change in the next couple of years we should start saving for a deposit now. There is nothing wrong with my credit score either as I have never defaulted on my debts and have never owed that much to be honest.