Will I EVER be able to buy a house?

BitterAndTwisted

Shared ownership can be cheaper than renting at the outset BUT you'll be paying a mortgage on the bit that you've borrowed. Interest-rates have only one direction to go in. You'll be paying rent on the bit that you don't own. That will only be going in one direction, too. In addition you will be paying a service-charge and that won't get any cheaper over time either.

On top of that, trying to sell a second-hand shared-ownership property can be very challenging indeed. There are threads about the difficulty people are experiencing in selling almost every day.

I would advise you to bust a gut in trying to increase your earnings, save like a demon and sit tight for as long as possible. You live at home, so there probably isn't any desperate hurry yet.

YoungBusinessman

Increase income, invest in yourself so you command a higher salary, find a partner to buy with so a £125k place only costs you £62,500 for your share, get out the mindset of doubt that you are in. Stay dedicated while you save the deposit. Last of all, stop making excuses.

19lottie82

Macrae88 wrote: »

As for upping my income, I currently work in a call centre, but I do have a degree in engineering, but have been out of uni for over 3 years. So not entirely sure where my career could go in the short term, unless I do some other courses etc.

can you not go back and do a masters / pgd? i work in the oil and gas industry which is BOOMING and crying out for graduates with these qualifications.

if you dont want to go back to uni (but i would consider it, there is a lot of £££ to be made in this industry - do you want to be stuck in a call centre all your life?) then try writing to any oil and gas companies you can think of to see if they are looking for any proposals graduates, the company i work for takes on people with random degrees all the time in this department and it can be a good foot in the door.

if there is nothing in your area,you might have to consider moving further afield tho, but there is money to be made.

kingstreet

As a rough guide, you could probably afford a shared ownership property as follows if you could pay;-

£100k 50/50.

Mortgage £47,500
Deposit £2,500 + fees and costs another £1,500 on top.

Purchase price of share £50,000

Over 25 years, mortgage cost £291 (5.49% for 95% shared ownership)
Rent on unowned share £115 (£50k x 2.75% / 12)

Service charges and ground rent £130 (based on flat £110/£20)

Total £536, plus all the other associated costs of home ownership and your living, travel and other expenses on top.

How does that sound?

JencParker

citricsquid wrote: »

Why do people have an expectation of being able to purchase a house as a single person earning near-minimum wage? You'll be able to buy a house if you increase your earnings or find a partner with reasonable earnings. Trying to purchase a house on minimum wage is crazy even if you do manage to scrape together enough money for a deposit...

Because there's no affordable rental properties?!

freeisgood

Why don't you start with a studio flat? I would forget shared ownership for now, and buy something small, basic, and affordable for you. Save up a decent deposit while you are living almost bill free for now. If you can save 15 to 20k and buy a studio for around 80k then you won't need to stretch yourself.
2 years would go by in no time, and you would be a home-owner with no need for shared ownership.

sulphate

It's not impossible, but you'll definitely need a decent deposit. Set yourself a savings target, if you save £600 per month you'll have more than £20k in 3 years' time, and you might be earning more by then

NervousHomeowner

It might not be possible in Warwick but have you considered looking for somewhere in Coventry? It can be a lot cheaper to buy there but is still within easy commuting distance of Warwick by bus or car, and has great rail links to London and Birmingham too. Depending on where you want to live & what you want, it is possible to get a nice property for £100,000 or slightly less & would mean you could get away with a smaller deposit

katejo

monty-doggy wrote: »

You can get help with deposit or a 5% deposit paid on a shared equity scheme. On your salary you could borrow around 60k which would give you a 50% share of a £120k property. You need to look at what schemes are available in your area.

A 5% deposit would be £6k

60k sounds unrealistic on a 15k salary ! When I bought my first flat , I was earning 14k and max mortgage available was 42 k . That was fine to pay each month . A 60 k mortgage could easily cost you £450 per month

monty-doggy

katejo wrote: »

60k sounds unrealistic on a 15k salary ! When I bought my first flat , I was earning 14k and max mortgage available was 42 k . That was fine to pay each month . A 60 k mortgage could easily cost you £450 per month

THIS IS FROM THE MORTGAGE CALC ON HERE

Based on typical bank's lending criteria the likely upper range of a mortgage you could get is between
£48,800 and £60,000

Although your credit score also has a big impact - read full Credit Rating guide.

This is mainly for people who are employed - sadly for the self employed it's more difficult.

A mortgage at £60,000 at 5% over 25 years would cost you
£351 per month (28% of your pre-tax income).