First time buyer questions - Pls help

bretts

The 25k loan you are talking about is the personal loan banks offer to there customers, but if you do take some of it lets say 15k for a 10% deposit, this will not go well with the lenders as they see that to even keep a deposit you have had to borrow money.

bretts

Just came to my mind that I only have credit card balance outstanding that is paid every month by DD and bank has asked me to clear that before they will release the funds and the solicitor I think would check that, that is not my concern whether they see it or not as I am anyways going to pay that as and when it comes so any outstanding loan small or big in my case even my cc bills need to be cleared before they will release the money to my solicitor. I dont know how seriously this is by the sol or if he is even bothered to see it or no.

kingstreet

The cost of any loan and shared ownership rent and service charges will be deducted from your income in establishing affordability.

For example, a couple with two kids earning £35k and £12k could borrow £200,300 from Nationwide.

If you then factor-in the rent, that figure reduces to £134,500. Loan, credit card and childcare payments would also have to come off that, leaving you short for the proposition you are suggesting.

Please think this through carefully. A £135k mortgage over 25 years at 5% would cost £789.20 per month. With rent, service charges and other costs, could you afford it?

kingstreet

bretts wrote: »

Just want to tell you one more thing
these calculators are way off they just multiply your salary 5 times

Did you make deductions for dependents, credit costs, childcare etc? Normally, if you are honest with your commitments, the output is spot on what you'll be offered at full application.

You may wish to consider your own thread instead of hijacking someone else's.

bretts

kingstreet wrote: »

Did you make deductions for dependents, credit costs, childcare etc? Normally, if you are honest with your commitments, the output is spot on what you'll be offered at full application.

You may wish to consider your own thread instead of hijacking someone else's.

I did put in all the info in the calculator as what they were and they just multiplied my salary by 5 if i am not wrong, but when i applied for the full application it all changed. I was just telling the OP my experience, no harm in that just so that he/she knows all the different scenarios.

I am sorry if i have offended anyone here.

kaaip75

kingstreet wrote: »

The cost of any loan and shared ownership rent and service charges will be deducted from your income in establishing affordability.

For example, a couple with two kids earning £35k and £12k could borrow £200,300 from Nationwide.

If you then factor-in the rent, that figure reduces to £134,500. Loan, credit card and childcare payments would also have to come off that, leaving you short for the proposition you are suggesting.

Please think this through carefully. A £135k mortgage over 25 years at 5% would cost £789.20 per month. With rent, service charges and other costs, could you afford it?

I know it’s not easy to move forward with 1200.00 mortgagebut I can cut my expanses like 85.00 worth sky, some entertainment etc. Butstill how can I convince a lender with my current situation. Is it possible togo for ‘Equity loan scheme’ with 5% deposit? Is it only for new properties?

To save some money within few years time, I can give up my permanent job & startdoing contracts (or go middle east for few years for tax free money) But itwill break my permanent job history. Itis hard to keep all the strings together.

yorkshire_terrier_owner

kaaip75 wrote: »

I know it’s not easy to move forward with 1200.00 mortgagebut I can cut my expanses like 85.00 worth sky, some entertainment etc. Butstill how can I convince a lender with my current situation. Is it possible togo for ‘Equity loan scheme’ with 5% deposit? Is it only for new properties?

To save some money within few years time, I can give up my permanent job & startdoing contracts (or go middle east for few years for tax free money) But itwill break my permanent job history. Itis hard to keep all the strings together.

This really is quite simple - you will not convince a lender to give you a mortgage with your current situation. You don't have the deposit, and your affordability is out.

Your options are:
1. Cut your expenses, save like the devil, and then perhaps make use of the help to buy scheme when it kicks in proper in January 2014
2. Flog a dead horse and keep applying for mortgages you are never likely to get, thus damaging your credit references and then chances of getting a mortgage later (all those searches for credit will have a negative impact)

The general consensus on here is that you cannot currently afford it.

To give you some perspective, I have recently moved. I had been desperate to move for years, but knew with the current situation I would not achieve as much as I paid for my house. I saved and saved and saved for years to be able to do it - with patience I have got there in the end.

I earn slightly more than you, am single with no kids and no debt. I could have borrowed 90% on a property up to a value of £200k. But I didn't - went up to a max of £150k so that I could continue to have a life/holidays/save every month/have money in the bank for contingencies/manage if interest rates go up.

I understand how desperate you must feel to want to be in your own home, but you really do need to be sensible here. It is these sort of financial decisions that have landed so many people in trouble in recent years.

kaaip75

Hi All see below for the work out I got from a mortgage broker for the shared ownership house I mentioned you in my previous posts. Do you think it's workable & will be accepted by a lender? thanks


Your maximum loan is £109,000 - based upon your income andtheir rent.


Here's the numbers - valuation £300,000 - of which 40% =£120,000 of which 90% = £108,000 - so, you would need to buy a 40% share tomake this work - since the most you can borrow is £109,000.


No - you cannot use the 5% shared equity loan - you wouldneed to place your own or family deposit for the 10%.


Thank you,

kaaip75

Afterlong time...hope you are doing well.

I amback in searching the market for any possibility of securing a mortgage foralready discussed shared ownership house which is on the market (A new one).

Currentasking price is 142k for 50% share + rent 366.00 per month.

Mysituation has been changed last couple of month.

Income36k + 12k (from my wife)

Loans: Barclays – 6000 (188.00 per month), Car loan 9000 (204.00 per month)

OD: with Barclays around – 1500.00

CCbalance with Barclays – 600.00

Credit score is 758 now.

Currentrent I am paying – 900.00

Giventhe above situation, what is my maximum loan figure?

Can Iuse 5% (which i have now) + government help to buy scheme (15%) = 20%?

Pleasehelp me with your kind advise....

kingstreet

You can't use Help To Buy on shared ownership.

Use this to calculate what you can, or can't borrow. Make sure you enter the shared ownership rent in the personal outgoings box;-

https://online.leedsbuildingsociety.co.uk/public/mortgages/quick_enquiry.do

I've given you the Leeds calculator because it's a lender which will offer 95% on shared ownership.

You also need to pass the HCA HomeBuy Agent's affordability calculator as well. Find out who it is for your area, Moat, Catalyst, Orbit etc.

See back of this guide for list;-

http://www.homesandcommunities.co.uk/sites/default/files/our-work/help_to_buy_buyers_guide_sept_2013.pdf