First Time Mortgage - Don't have much of a deposit

BoGoF

Another question that hasn't been asked is what other debts do you have as this will affect affordability.

If you are thinking of applying to your own bank then their website should have mortgage calculators which can give you a rough idea.

matt2877

BoGoF wrote: »

Another question that hasn't been asked is what other debts do you have as this will affect affordability.

If you are thinking of applying to your own bank then their website should have mortgage calculators which can give you a rough idea.[/QUOTE

I pay my dad £360 per month as he lent me money for a new car, I will be paying this for the next 2 years before it is payed off. I have no other loans or debts and my only other outgoing really is £80 per month car insurance. My girlfriend also has no debts or loans

matt2877

Thrugelmir wrote: »

Then don't be frustrated. Buying the house is only the first stage of a very long uphill climb. Once your g/f has full time employment then your situation will change considerably.

Thanks, great advice and I know its true, but so very frustrating

Annisele

matt2877 wrote: »

Iam extremely frustrated with not being able to get a house and really get my life started.

Life doesn't start when you buy a house. Renting has definite advantages (I speak as a tenant - so far this winter our poor landlord has had to spend a fortune on fixing stuff).

I don't think it's a good idea to pin your happiness on owning a thing, whether that thing be a car, a house, or a private jet.

IMO the £360 per month is likely to massively affect the amount a lender would be prepared to lend you - it's about 20% of your gross salary.

Even without the debt, to get any kind of decent deal you need to save more. If you want to get married with a bigger 'do' than signing your names in the registry office then decamping to the pub (not that there's anything wrong with that), you need to save more. Kids are similarly pricey!

It's possible that by the time you've saved more of a deposit, your girlfriend will be earning more, lending criteria might have changed, and you'll overall be in a much better position.

johndjs

Aldermore Bank has launched a 100 per cent mortgage deal which will allow homebuyers to borrow the full amount of a property’s value, without putting down a cash deposit.
The small bank, which was launched in 2009, is the first lender to offer a new mortgage at 100 per cent since the widespread withdrawal of these high loan-to-value (LTV) deals during the financial crisis.
But to obtain the loan, potential homebuyers will need to secure a guarantor, such as a parent, grandparent or guardian, who is willing to support it.

This needs 25 per cent of the mortgage to be secured through a charge on the guarantor's own property.
Although the guarantor would not need to provide any money upfront, if the borrower’s property was repossessed they would be liable for any shortfall that the sale brings.

This means that the guarantor would need to be confident that the borrower they are helping out is in a sound state of financial play.

opinions4u

johndjs wrote: »

Aldermore Bank has launched a 100 per cent mortgage deal which will allow homebuyers to borrow the full amount of a property’s value, without putting down a cash deposit.
The small bank, which was launched in 2009, is the first lender to offer a new mortgage at 100 per cent since the widespread withdrawal of these high loan-to-value (LTV) deals during the financial crisis.
But to obtain the loan, potential homebuyers will need to secure a guarantor, such as a parent, grandparent or guardian, who is willing to support it.

This needs 25 per cent of the mortgage to be secured through a charge on the guarantor's own property.
Although the guarantor would not need to provide any money upfront, if the borrower’s property was repossessed they would be liable for any shortfall that the sale brings.

This means that the guarantor would need to be confident that the borrower they are helping out is in a sound state of financial play.

Great. So if it all goes tits up the family get two homes repossessed!

LornaGrace

Hi, me and my boyfriend are in a similar situation to you. This article is quite interesting...

guardian.co.uk/money/2012/jan/27/first-time-buyers-mortage-back

(sorry cant link it)
We were hoping for a 95% mortgage, but we have seen two mortgage brokers and they are unwilling to do anything for us at 95% and have said we may be better going straight to the lender.
Good Luck, its very daunting!

shop-to-drop

If you've saved up £2500 in 3 months why not take advantage of living with parents a bit longer to build up a sizeable deposit. You will reap the rewards in the long term and appreciate your lower interest rate and lower payments in years to come when you start a family etc. I would say idealy stay as you are and save until girlfriend is in fulltime work by then you will have a lovely big deposit and a much better income and could also have paid dad off.

Hello123_2

Some new build schemes help with deposits (not sure if any good but worth enquiring?)

Alternatively, keep saving until you have 10% like the rest of us do!

Or wait until your girlfriend has finished college & is in full time employment (assuming she's not going on to university) so you can save more/borrow better rate.

I know it's frustrating but another 6-12 months really isn't that long :-)

johndjs

Apologies for late reply.

95% Mortgages

Ulster Bank 3.79 5 year fixed (shared equity)
Market Harborough 3.99
Lloyds 3.94 (existing customers only) otherwise 4.04 %
Halifax 4.49