realistic target to get back on the property ladder post BR??

gtanny

Hi All,

i went BR 31st Jan 2011, discharged 5th Aug 2011 :j

now im currently paying £450 rent a month for a 3 bedroom house and after being OK with it i finally realised that thats over 5k a year which is over 25%, in fact over 30% after tax, of my annual salary and this is the reason i never wanted to rent as its a lot of money to be paying back someone elses mortgage :mad:

maybe its because im always looking to the next step wether in my career or my normal life im always looking to move on and generally im determined enough to succeed (if we ignore the whole BR thing anyway :rotfl:)

anyway, paying £450 a month makes saving for a deposit stupidly hard and i know 100% mortgages dont really exist anymore especcialy with my credit history

so in short what is the likelihood of me ever being able to get on the property ladder again, i want my own house again, i know what i did wrong last time and it wont happen again but it seems like an impossible task when we have less then £50 a month spare

kepar

To be honest you will probably have to have at least a 20% deposit and also you will probably have to wait at least 6 years until the br drops off your credit file. Although you will still have to it declare if asked.

To be honest if you can only afford £50 a month it will take you too long to get a deposit together.

You have to accept your lot for the time being at least and maybe save the money and use it on a holiday.

Who knows your circumstances may change in a few years and the door may open again.

andyf1980

gtanny wrote: »

Hi All,

i went BR 31st Jan 2011, discharged 5th Aug 2011 :j

now im currently paying £450 rent a month for a 3 bedroom house and after being OK with it i finally realised that thats over 5k a year which is over 25%, in fact over 30% after tax, of my annual salary and this is the reason i never wanted to rent as its a lot of money to be paying back someone elses mortgage :mad:

maybe its because im always looking to the next step wether in my career or my normal life im always looking to move on and generally im determined enough to succeed (if we ignore the whole BR thing anyway :rotfl:)

anyway, paying £450 a month makes saving for a deposit stupidly hard and i know 100% mortgages dont really exist anymore especcialy with my credit history

so in short what is the likelihood of me ever being able to get on the property ladder again, i want my own house again, i know what i did wrong last time and it wont happen again but it seems like an impossible task when we have less then £50 a month spare

You got discharged before me and I was br in October last year. Congrats I know what you mean about renting though - I pay £600 a month for a one bed flat. The upside of renting is that it does give you flexibility if your life changes.

alastairq

Also, what needs to be considered is, whether property values will be low enough to again step onto that mythical ladder?

Plus, will there be a time limit on the length a mortgage will need to run [age?] in order to achieve payment levels less than what is paid out now?


personally I think your level of rent is marvellous, for the property size....I have similar [but rural] and pay more than that!


But, in any event, that sort of expense level [or more] will be coming out of your income...in order to put a roof over your head, for a lifetime, whatever path you follow.

The money goes out, whether to a landlord, or to a mortgage provider....and either way you'll be paying over the odds....and probably always were?

As you may have noticed, 'security' is as fragile, with either path? [Probably more so if on a mortgage, these days?]

But at least with renting, one hasn't the potentially massive repair and maintenance costs of owning [a misnomer if ever there was one?] property.

Property-ownership is a peculiar British aspiration....not necessarily the right one either.

Ineedaname

alastairq wrote: »

But at least with renting, one hasn't the potentially massive repair and maintenance costs of owning [a misnomer if ever there was one?] property.

Property-ownership is a peculiar British aspiration....not necessarily the right one either.

My thoughts too Alistair. By the time you've added up mortgage repayment, buildings insurance and all repairs/maintenance over the lifetime of a mortgage, it would probably total a similar percentage of income.

Plus, during that time the householder never owns the property until it's all paid off, so is maintaining the property on behalf of the mortgage company.

I know which route I'm happy with!:D

kepar

Ineedaname wrote: »

My thoughts too Alistair. By the time you've added up mortgage repayment, buildings insurance and all repairs/maintenance over the lifetime of a mortgage, it would probably total a similar percentage of income.

Plus, during that time the householder never owns the property until it's all paid off, so is maintaining the property on behalf of the mortgage company.

I know which route I'm happy with!:D

Until your landlord says he wants you out because he is going to sell

kepar

Ineedaname wrote: »

My thoughts too Alistair. By the time you've added up mortgage repayment, buildings insurance and all repairs/maintenance over the lifetime of a mortgage, it would probably total a similar percentage of income.

Plus, during that time the householder never owns the property until it's all paid off, so is maintaining the property on behalf of the mortgage company.

I know which route I'm happy with!:D

Also at the moment you are ex bankrupt on benefits with no real chance of getting a mortgage. The OP doesn't want to know about the benefits if any of renting , but of what chance of getting a property again.

Just because you can't doesn't mean others don't want to.

andyf1980

kepar wrote: »

Until your landlord says he wants you out because he is going to sell

That's true. There's always that risk. Sometimes you can get a feel for whether the landlord is a professional investor or not. I tend to think they're slightly less likely to sell. Realise that isn't always the case though.

alastairq

Also at the moment you are ex bankrupt on benefits with no real chance of getting a mortgage. The OP doesn't want to know about the benefits if any of renting , but of what chance of getting a property again.

Just because you can't doesn't mean others don't want to.

I refer you to the OP's second sentence.....regarding the view that renting is , effectively, 'wasted ' money?

I think we wish to point out the weaknesses in that assertion....just in case 'others' may be influenced by such sentiments?

No harm in some 'realities' being put forth?

alastairq

Until your landlord says he wants you out because he is going to sell

that is no more significant a risk than losing one's job, or taking a major cut in income?

Sadly, successive governments have refused to consider offering incentives for landlords to enter into long-term leases.

andyf1980

kepar wrote: »

Also at the moment you are ex bankrupt on benefits with no real chance of getting a mortgage. The OP doesn't want to know about the benefits if any of renting , but of what chance of getting a property again.

Just because you can't doesn't mean others don't want to.

Reality is that it isn't possible atm. All I and others are trying to do is say that there are certain benefits of renting. Maybe they don't outweigh the benefits of owning but a bit of positivity does no harm