FTB Mortgage Help

kriss_boy

Ive finally found a house. Its "offers over "98K but the estate agent hinted it might go for 98K, not 10/20% over like the rest of the houses in the area as its a bit dated and every viewer so far hated particular things we know are purely asthetical. The estate agent seemed a bit too honest!!

So, via alliance leicester calculator says I can borrow 93K, (after putting down 5 deposit), and repayments are approx £450 for first 2 years then £540 for the remaning 33 years!!

Is it likely Ill get 93K mortgage? Im on 15K.

My parents are willing to remortgage their house to give me 30/40K cash if need be.

We are meeting the lawyer and financial advisor on monday but i wont sleep until then!! Anyone got any ideas? Anyone in similar position?

MortgageMamma

I Think if you are planning on buying alone you will need the assistance of your parents, on a salary of 15k I would seriously consider whether you should be a homerowner at all. When you take into account your mortgage, council tax, water, electric, gas, tv licence, phone, food and essentials and perhaps travel its not going to leave you with anything out of your £1,000 at the end of the month

the only way you could make this affordable for yourself is to have someone else live with you to help share the costs

kriss_boy

Sorry to clarify,

Im still relatively fresh outa uni and ill get a job thats approx 20K within the next 6 months easy peasy. I got offered a job week before last which was 19K but I turned it down because it was longer hours so Id rather bide my time in my current job (which works on flexy time) than jump to something im gona hate for a few months till sumin better comes along!!

Secondly!! I probably wont stay in it!! Which sounds mental but ill probably stay at home with my parents and slowly rennovate the property till I get a better job!

So it will jsut be mortgage and possibly council tax although I believe I dont have to pay that!! Its a grey area but some of my mates claim you dont have to pay council tax if your not in it and it doesnt have a bathroom!! So we will literalyl take the toilet out!

MortgageMamma

Ok thats much better then. but until you are on 20k then you will struggle to get a 93k mortgage, as a guide the general income multilples available from various lenders today are between 4.5 - 5 x salary at your earnings level

You are doing the right thing seeing a financial adviser with your folks

kriss_boy

See Id need 6 times my current 15K!!!!

Im begining to think I should have taken that job!

I have various options. My brother wants to invest in something and hes got a bit of money saved. I also have an auntie who wouldnt hesitate to offer to help but my dad might be a bit funny about that!

My mum said she would remortgage their house but convincing my dad might be tough. So we will wait and see what the financial advisor says on monday!

It would make life 100times easier if they can give me the full mortgage. Is there no way they do that these days, somehow holding your parents liable, with there assets as collateral? giong garantour?

The house just has so much potential! And comparing it to the renovations we did on our family home, where other people may budget 40K, I know we could do it for around 15K. Stripping the wallpaper and renewing the doors and woodwork cost pennies. Bog standard kitchen and bathroom aint too dear! Its had all new double glazing.

The only costly thing would be the heating! But I could install most of that myself with my dads help.

MortgageMamma

Yes its quite possible for parents to go guarantor and use their income to support yours until you are in a position to take on the whole mortgage alone

Make sure you bring this up with your financial adviser next week as the thing is with financial advisers is that they don't specialise purely in mortgages and may not be at the cutting edge of what is available in this respect

What do you intend to do with the house once you have renovated it? live in it> rent it? If I could turn back the clock at your age I'd have stopped at home with my folks and invested in a load of property either as a developer or a landlord, but unfortunately I discovered men and got a job at the council and never made anything of my opportunity.

Good luck whatever you do.

MM

kriss_boy

Im not buying it to make money, because its the sort of place I could see myself staying for 5/10/15 years no problem. But I definately think if will increase in value if i do get it and start doing it up.

The location is great, semi rural but 5 mins from my hometown and thus my mates etc.

The plan would be...

Redecorate bedrooms and living room as it would cost nothing and Id get it done in no time. Id probably leave the kitchen and bathroom as they are dated but perfectly functionable in the short term.

The property is on a slope so you enter the house on the first floor. But the land swoops down and around the building to the ground floor double garage and 'work shop' located under the entire house! So its massive! Id dryline the entire basement (garage/workshop) and stick a snooker table in it for the time being

After two years Id re-evaluate the situation and hopeully the minor works Id have carried out would have increased its value. Id do the garden and I have a mate who could do all new railings and gates on the cheap.

kriss_boy

I was looking at mortgages and I see you can have your first 24 months at around £370, then the remaining 33 years at a shade more because your first 24 were cheap!!

If my parents did go garantour Id just direct debit them the money each month so they arent out of pocket.

It really comes down to whether or not they will give me approx 90/95K mortgage!!

If my parents have to remortgage to give me cash.. my dad might dig his heals in!!!

MortgageMamma

I think once you have seen a professional your dad will know what options are open to you and will be able to make an informed decision. lets hope that it fills him full of enthusiasm. You could always get him onside trying to involve him in the renovations and letting him have sanctuary at your place when your mums doing his head in

Snooker table - every mans dream! lol

I hope you get it, you sound really excited. I think it basically rests on your dad though unless you look for a second job (that might make him realise you are serious and feel sorry for you!)

kriss_boy

Its bad timing unfortuantely.

Me and my dad are working on my brothers extension which will take at least another month to get it to a point where my brother can finish it off himself.

Then my parents house is getting re-roofed this summer and fingers crossed we will get that house fnished. We've completely rennovated it. Its completely unrecognisable!! But we have 8 velux windows to go in!! yes 8!! After that the house is pretty much on the home straight insofar as getting finished.

So my dad with either say, ok, get this new house but put any major works on hold for 6/12 months, or NO WAY we dont have the time!!

stickyVicki

First post bare with!!

Hi there recently we have been in a similar situation, I was at uni & not earning & my partner earns around 20k, we fell in love with a house for & our offer was accepted at £137k, we managed to get a guarantor mortgage from northern rock fror 95% (130k) (other companies do offer these) my husbands parents stepped in as a guarantor & they take there earnings into consideration & you can borrow a lot more than you could on your own. Baring in mind your guarantor has to be 55 years old or younger. This does not put there home at risk if you decide not to pay your mortgage!! No extra legal fees were involved for us & it was very straight forward, its much more independent than borrowing large amount of money from them!!

Good luck