First buyer/key worker/equity loan - which will best help me buy a flat in London?

roadrunner_1306that

I am a key worker currently residing in Surrey but looking to buy a flat in London. I've been looking around and for what/where I want, a 2 bedroom flat is around £220.000.
I have £25.000 in savings and a £29.000 salary per year. I started working on a permanent contract a month ago. Never had debt, I'm a EU citizen, been in UK for 5 years and am now working for Ealing Council.

My question is, given my finances, what are my realistic options? I don't want a home share where I have to pay rent for x% of the house. I want to pay only the mortgage. Could I get a mortgage and an equity loan? If so, where do I start? Do I first find the property or do I first find how much mortgage I could get?

Also, my plan is to buy a 2 bed and rent out the second bedroom, which would help with the mortgage. Is this something I should mention to the lender?

I am a complete novice in this, so any advice would be very much appreciated.

Dave_Ham

Hi there,

The shared ownership/equity route is hard work but you are a key worker. Most are ownership and many are over priced originally and you have stated you do not want to pay rent. Whether it be equity or ownership the non-mortgaged side of the deal typically works out more expensive (relatively)

I would lower your expectations a small bit on purchase price,as your salary will not get you what you want to currently. Unless you can achieve and undertake any bank work, overtime, commission etc.

If the rent of a room is an idea, would not mention at inception as would not be used in affordability but you can do this tax free to a certain threshold (about £4,000 but check)

Good luck...