Another first time buyer after some advice... please!

inca_yogu

Hi,
MY partner and I are keen to get onto the property ladder and have done lots of research into mortgages etc lately but do not really know where to start. We have read Martins advice and have scoured the forums and found some really helpful information.

I am just about to qualify as a teacher which means my salary will be £21000, my boyfriends income is £15000. We only have about £6000 saved between us, and don't know where to start really.

As I will be the main earner I am presuming I will need to show evidence of my income so will need to hold out for a few months until i have the pay slips.

We would like to know how much we could borrow, and basically when we could get the ball rolling with me still being a trainee. (My school has offered me the job - and I start my contract in July)

I know I will also qualify for the Key Worker housing schemes but the info i have read on this has totalyl confused me! From what I can see it may not help all that much.

Many thanks in advance for any advice,
Sam

MortgageMamma

HI Sam

Where do you want to buy and how much do you want to borrow?

Whats your credit history like?

Do you have a lot outstanding on credit cards. loans etc?

inca_yogu

I have my student debt of about £15,000 and have not began to pay that back yet, but that is the only debt I have ever had. My partner has no debt, and neither of us has ever had a credit card, or any kind of debt (apart from the student loan!).
We both still live with our parents, although I lived away for 2 and a half years whilst at uni, so we have very little renting history.
We want to buy in South East Essex, probably Basildon somewhere and we are not sure how much we are able to borrow. We have had a quick look at some properties, but don't want to set our hopes too high as we don't know how much we are capable of borrowing.

JoeK_3

inca_yogu

Have you considered a shared ownership property?

JoeK

MortgageMamma

If you work on 4 x joint, up to 4.9 joint income as a max then that should give you a rough idea of what you could borrow. but you do need to ensure you could afford the repayments

one way to make a mortgage cheaper int he short term is either to begin on interest only, where you only pay interest to the lender and do not pay any capital, or to take a repayment mortgage over a longer term, perhaps 35 years

inca_yogu

Shared ownership is an option for me, but my partner is not too keen. I think we would both like to see what our options are and if we can do it ourselves then we will go for it. Shared onwership is going to be our second option.




I guess our next option is to mortgage shop to find our best deal. Thanks for the advice!

Do you think it will be worth taking advantage of the key worker scheme or is it not worth the bother?

Thanks,
Sam

herbiesjp

inca_yogu wrote: »

Hi,


As I will be the main earner I am presuming I will need to show evidence of my income so will need to hold out for a few months until i have the pay slips.

We would like to know how much we could borrow, and basically when we could get the ball rolling with me still being a trainee. (My school has offered me the job - and I start my contract in July)

Sam

HI Sam

Not necessarily true


There are lenders that will write for an employment reference, so payslips will not be required, as yor employer will confirm all the details

Also, there are lenders that will take into account your future earnings, seeing as you have a signed contract for a position starting in July.

Being classed as a professional may enable you to get slightly higher income multiples

The Keyworker schemes can be helpful, but read carefully how they work, as you do not want to have nasty surprises when you come to sell the property