The gulf of 'affordability'

wastedtalent

Davewils wrote: »

If i move out, then i'll just end up paying more in petrol.

At the moment, the place i'm interested in is cycling distance from work. So my fuel costs would be 0. However if i move out into the countryside a bit, not only would i have to commute into work = petrol. I would also have to drive to see any of my friends, and get taxi's if i wanted to go out. So it really would be a false economy.

But still would be in the banks calculations, as things change...

kingstreet

Davewils wrote: »

Right, a little update. Following discussions with my mother she is willing to cover the difference between what i can get for a mortgage (around 70k) and the rest of the price of the home (-the 30k the FirstBuy would put in). So i would effectively have a 47% LTV mortgage.

Repayments on this would be easily manageable, and my mother wishes that I only pay her the interest that she will be losing out on by giving me the money (which we've calculated to be about £100pm the first year, £105pm the second etc etc).

So, i will be going to the builders next week and starting the process. It may not happen, we may find that having a parent willing to put in their savings wipes out the option to go on FirstBuy, or perhaps once all the service charges + home insurance etc is all added up, it becomes un-affordable, but we'll see.

At least now, with my mother's support, I can go down this road with my eyes open, and if it looks like its going to be unaffordable, then we can look into other options aswell.

You are likely to encounter mortgage problems as a lender will take the payments you make to your mother off your income before calculating your borrowing power. In a way, you're making yourself worse off. You're replacing a loan which is interest-free for a period, with one which charges you interest immediately.