Mortgage repayments are they all so high??

rach!_3

Just been looking at shared ownership
(open market homebuy to be precise)
anyway looked at online quotes for mortgages and the quotes we got were around £88000(as 75%) anyway what i am worried about are the repayments
i tried an online repayment calculator and got £611 p/m
are they all going to be this high wherever iwe might get a mortgage from??
people have said it would be cheaper to buy(mums is £230+) and we are paying £260+ p/m rent+arrears and we could afford around that amount, but theres no way on this earth we could even begin to manage more than £300 p/m
so are we going to be stuck in this godforsaken hole forever or are there places where we will be able to get mortgage repayments we can afford.
please let me know anything you can as i dont think we can carry on much longer on this estate and may have to consider moving to another town if it means thats the only way we will egt off this estate which i dont really want to do as i love our town just not the estate.

rach!_3

anyone, please?

DavidHM

If you borrowed money with no interest at all, over 25 years, you'd pay £293.33 per month to pay back £88,000.

Look at MoneySupermarket for an idea of what is a realistic figure across the whole market: note that some mortgages start with an artificially low repayment figure and increase rapidly.

I don't know your financial situation but if you're £300 short of what you need to be then your only realistic options are either to increase your income (by £5,000 a year) or decrease your expenditure by £300 each month.

If you can't do either then your best bet is to get council housing and see if you can do a cheap purchase through them evenutally - but that might of course mean remanining on the estaet.

maninthestreet

At 5.25%, an £88,000 reayment mortgage over 25 years will cost approx. £527/month. You may be able to get a fixed rate of 4.99%, which brings the monthly payments down to £513/month. But if you cannot afford more than £300/month, this doesn't really help you much.

pollyanna24

I haven't looked into the figures for you, but if you take out a mortgage over say, 35 years, this will decrease the monthly payments.

This does however make you pay a lot more in the long run in interest.

This is what me and my bf decided to do with the idea that we would overpay or hopefully our wages get better over time.

rach!_3

pollyanna24 wrote:

I haven't looked into the figures for you, but if you take out a mortgage over say, 35 years, this will decrease the monthly payments.

This does however make you pay a lot more in the long run in interest.

This is what me and my bf decided to do with the idea that we would overpay or hopefully our wages get better over time.

oh, maybe i used the wrong calculator then, as when i put more years in it didnt go down by all that much maybe £80 at most and that was when i doubled the years

DavidHM

Extending the term to 35 years (and assuming you met the other criteria) would mean that the lowest mortgage payment is £462.05, fixed for the first 20 years.

Of course in 20 years' time the likelihood is that your rent would be at least that much and you'd be no nearer actually owning the property.

Of course in a shared ownership scheme you have to ask how you would actually fund the remaining 25%.

Philip624

we have done this as well as my wife has switched to part time working, so her salary has halved. We have a 35 year mortgage with A&L, £773 a month. It is fixed for three years and we hope at that time, with 3 years worth of pay rises to move it from 32 years remaining down to 30 years, all dependent on interest rates of course.

rach!_3

DavidHM wrote:

Extending the term to 35 years (and assuming you met the other criteria) would mean that the lowest mortgage payment is £462.05, fixed for the first 20 years.

Of course in 20 years' time the likelihood is that your rent would be at least that much and you'd be no nearer actually owning the property.

Of course in a shared ownership scheme you have to ask how you would actually fund the remaining 25%.

well this is taken from the website for shared ownership in my area

This scheme allows you to buy a property on the open market with the help of additional money called equity loans. Purchasers have to be able to afford 75% of the cost of the property with two equity loans (each worth around 12.5% of the value of the home) provided to cover the remaining 25%.

Dead_Eye_Jones

why can you only afford £300 a month?

Perhaps you can reduce outgoings? Ditch th mobile phone, ditch the nights out, or whatever... I couldnt afford to have it all, I had to chose between luxuries and a house. I went with having a house. You have to make your own choice I guess.

If you really are that strapped for cash, perhaps you shouldnt really be looking to buy, I think a fair prerequistite to aspiring to own a home is a steady job - im not trying to have a go, I just think why push yourself down this route if you cant really afford it. Why not work on promotion, retrain, set up your own business, whatever... it takes time and work, but you didnt expect otherwise...

rach!_3

i dont have nights out neither of us do, havent for 3 years
very rarely top up mobile
the only "luxuries" i have are internet and sky that would gimme £60 extra a month and thats not even enough.
honestly we live on thebare essentials, we have 3 kids and none of us get luxuries unless its kids b'days or xmas( i truly honestly mean it we dont have any luxuries) and my other half has a steady job, life is a big pile of poo