100% mortgage?

BranstonPickle92

Me and my partner are looking to buy a house, we are renting at the moment, so with the rent being £525 per month (for a two bed flat - so we cant find anywhere much cheaper) plus our bills and my car finance (which is only £40 per month and I need the car for work), we are struggling to save more than about £50 per month between us (we have 550 from our bond on this place but that's it). Its impossible for us to save enough for even a 5% deposit before around 2021 - but we want to start a family before then.

I have looked at;
-rent to buy mortgages but there's nowhere that offers it around my area
-parent payback mortgages but my mum would have to take a loan out to cover the deposit
-95% mortgages (again, i cant save the 5%)

I really don't know what my options are, if i have any.

Any advice will be much appreciated.



For additional info - I'm on £16,950 per year and my partner is on £13,380 per year (hopefully starting a new job with a salary of £19,000 per year - i have a fair-good credit score (being 20 i just haven't built it up - there's nothing against me) and my partners is brilliant.


Thanks in advance.

Adele92

Its good that you both have a good credit score - that's a start. Make sure you start building it up though as the banks wont want to lend to you. Im 20 and have a 'good' credit score. My partner has a good one too and we have just been accepted for a mortgage. Get a credit card, spend a little on it each month like for your petrol or shopping, then pay it off each month. In 2 months your credit score will be a lot better.

any how lets be realistic, you aren't getting a mortgage without a deposit. These 5% mortgages everyone is going crazy for! Its ridiculous and the banks are looking for any excuse to reject. Could you not get family to give you the money? I am very lucky as my nan gifted me a deposit. Keep saving, your only 20. You have plenty of time. I have a 1 year old and I'm 20 - I used my benefits to save as well - I work 21 hrs a week earning 10k and my partner full time earning 16k and we get about 5k extra a year on top for having a child. I know it sounds awful but its the governments fault!!

ACG

With an extra £6k a year thats £500 a month give or take you can put towards the deposit.

I dont mean to tell you how to spend your money but with take home pay of approx £1900 and rent of £525... you should really be able to put some savings away and more so if the new job comes off.

How much were you intending to buy for? Anything of £95k plus and your going to be paying the same in repayments as you are in rent.

Thrugelmir

BranstonPickle92 wrote: »

(being 20 i just haven't built it up - there's nothing against me)

You've years ahead of you .Focus on your careers. Over time your earnings will then increase. Allowing you to build your savings. While a family maybe appealing. Owning your home will provide you with long term security. So you need to decide personally which is the most important.

BranstonPickle92

I already have two credit cards, two lots of finance and a loan so my credit rating is getting there, it'll just take time.

I dont mind paying the same for a mortgage, i just feel like rent is dead money and i wont get anything out of it at the end (plus we arent allowed to re-decorate or put up pictures shelves in this place which is driving me mad lol) - we were looking at between 120,000 - 140,000.

there's no one at all to give me money, my family have never been well off so im on my own with this.

I understand that we would be getting more money per month, but that is my partners money not mine, i can tell him to save it but i cant rely on that or at least dont want to.


to give you a better idea, at the moment our outgoing are;

rent 525
household bills - 330
other bills (car ins, finance, loan payments, travel, petrol) - 355
Food - 350
savings of about 30 each (ish)

that leaves us with 200 per month between us for little things like days out with family/ meals - if theres anything left then we do save it but it doesnt happen often - my boyfriend lives in his overdraft at the moment (it is planned so not too many charges)

I know there are alot of other options out there for mortgages for people like me, i just need to find them.

BranstonPickle92

ACG wrote: »

With an extra £6k a year thats £500 a month give or take you can put towards the deposit.

I dont mean to tell you how to spend your money but with take home pay of approx £1900 and rent of £525... you should really be able to put some savings away and more so if the new job comes off.

How much were you intending to buy for? Anything of £95k plus and your going to be paying the same in repayments as you are in rent.

With TAX its not going to be that much more but i do see where you're coming from

ACG

Im going to be very direct here - dont be offended i dont mean it to be but im being cruel to be kind...

You have debts,
You have no deposit,
You cant rely on your partner to put any extra money into a deposit,
The savings you could make each month - your actually spending on going out,
Living in an overdraft,

Added to that a purchase price of £120k even with a 5% deposit would make your payments closer to £600.

Firstly, you have debts... they need clearing.
Secondly, you need a deposit.
Thirdly, if you both wanted it badly enough you would give up the meals and the trips out in order to get your debt cleared and deposit saved.

You cant have it all, there needs to be sacrifices if you want to own your own property.

Just seen your reply re tax, i had accounted for that:
£17,000 + £13,400 = £30,400. Divide by 12 (months) = £2,533 Divide by 100 then multiply by 75 = £1900 - thats assuming your paying approx 25% in tax & ni, it shouldnt be a million miles out.

Thrugelmir

BranstonPickle92 wrote: »

I already have two credit cards, two lots of finance and a loan so my credit rating is getting there, it'll just take time.

If you weren't paying interest on debts then you could save more.

There's no bonus points for obtaining multiple lines of credit. One credit car should suffice. Clear the balance every month. Alternatively satisfactorily repay a loan.

You'll obtain more brownie points if you were to save via a scheme such as Nationwides Save to Buy. As regular saving proves you've the discipline to repay the mortgage. A seriously important factor these days.

Soot2006

To be frank you are unlikely to get the mortgage you want with those profiles, even if you did have a 5% deposit right now.

I would advise doing a proper budget - income, outgoing - as you seem to be spending a lot of money £350 on food for two people? £200 on monthly extras? That is a lot of unaccounted for cash ...

Lenders will have issues with affordability, so you want to show better money management all round.

hcb42

what are household bills £330?
As per prev post, food is very expensive also, you could get that down to nearer £200.

I realise you are young and might want to live well etc, and that's fine, but it's got to be one or the other.

wages will go up in time, so you can save more also.

Second job?
Of course if your partner doesnt want to save this excess money, then perhaps the timing isn't right yet.

Renting is frustrating, I know I just did it for 9 months after 25 years of home ownership. However, it isnt really dead money, it is still a roof over your head, somewhere safe hopefully..

BranstonPickle92

Thrugelmir wrote: »

If you weren't paying interest on debts then you could save more.

There's no bonus points for obtaining multiple lines of credit. One credit car should suffice. Clear the balance every month. Alternatively satisfactorily repay a loan.

You'll obtain more brownie points if you were to save via a scheme such as Nationwides Save to Buy. As regular saving proves you've the discipline to repay the mortgage. A seriously important factor these days.

I dont use the credit cards much, just maybe enough to cover travel which i do pay off straight away, i never have a balance carried over to the next month, i only have two as i had one then i started working with another bank and got a staff discount credit card and just havent closed the other one down yet.

as for the finance, i had no choice as like i said i needed a car. the loan was to try and put all my debts together, it has limited the amount of years ill be paying.