FirstBuy scheme for Teachers from Teachers Building Society

mrsmulac

Hello everyone - looking for a bit of advice...

My partner and I have been renting for the past 5 years with rent costing us £550 per month. We are 23 and 24 and have not yet been in a position to save deposit to buy, but resent wasting so much money paying rent.

I have been working as a teacher for the past year and came across a scheme that seemed perfect for us.

www. time2buy. org .uk /first_buy.php[/url]

The scheme runs alongside the government's 'FirstBuy' and in simple terms the Teachers Building Society will give an 80% mortgage, if you qualify for the 20% equity loan from FirstBuy.

teachersbs .co. uk/ mortgages/ firstbuy


I understand the drawbacks of this scheme but feel this is outweighed to a good extent by the amount we are spending on rent.

I just wonder about our chances of qualifying for the FirstBuy scheme and for the TBS mortgage.

We have combined earnings of approx £32 000
I have a credit score of 701 (according to experian) and my partner's is better.
The house we are interested in buying has an asking price of £125 000

Do we have a chance?

Any comments will be appreciated, let me know if more details are needed - v new to this.

Thank you.

sammyjammy

So in essence you would have a 100% mortgage? Your rent is relatively low, if you've not been able to save anything towards a deposit I would imagine you would struggle with a mortgage and all the expense that goes with owning a house.

Personally I think you are still young, presumably as a teacher most of this salary belongs to you so your partner must either work part time or be a low earner, my advice relook at your expenses and save some money for a deposit. Do you have any money saved for solicitors fees etc?

Renting isn't wasting money, its putting a roof over your heads.

mrsmulac

Thanks for your response.

I understand your advice - lots to think about!
Our rent is perhaps relatively low but still £6600 per year paying off my landlord's mortgage instead of my own!

As the equity loan is 0% interest for the first five years we feel this is virtually an opportunity for us to save our deposit as we pay the mortgage. We have just began work after leaving uni and our wages are set to increase year on year. The loan + mortgage would amount to only marginally more than the cost of renting. Is this wrong?

The costs of running are home are things that renters also pay so this wouldn't represent an additional cost when compared to our current circumstances. The house would be under warranty for the first 10 years.

At the moment I am really interested in whether we would be eligible for the scheme/ mortgage?

Any other opinions about whether this is a good option?

Thanks again.

originalmiscellany

Well, as a teacher (you're full of them on this board), you will get a decent pay rise for the next 6 years until threshold, plus the chance of promotion which will make a huge difference. I would be honest and say that house prices are going one way, and one way only for a few years, so I would save hard (I would have thought that you could save depending on where you live 1k a month, which for 2 years is 24k which would put you in a great position.

However, I don't know if you are eligible, but cutting your cloth already will be a great plan.

Finally, looking at salaries, you are a teacher, so on 20k plus, whereas your partner is on 12k - is there any chance they could contribute more?