Mortgage Advice Needed for First Time Buyer

Sausfest

Hello,

So I graduated from University last year and I earn £25,000 a year.
I've been renting a place for the past year for £700 per month (after bills, council tax etc) and i've realised that my future prospects are bleak at best.

I've decided a sensible thing to do now is to buy a property.

Now, my first problem is that I cannot afford a property on my own currently.
Question 1) Is something like shared Ownership a worthwhile investment or would it end up being more expensive than it is worth? (Link Removed because i'm new)

Question 2) Secondly, most of my friends are not too well off, is there a good place to find like minded people to get a mortgage with? If so, is this safe or advisable?

Basically, I'm looking to get a shared mortgage and i'm trying to find people to buy a property with. I'm so tired of paying crazy amounts of rent and would rather invest my money into a home I can own in the future. I'm just not sure if this is a terrible idea or not as i've never thought about this step before.

Thank you for any answers or help :beer:

ACG

I think you need to have a rethink.

Buying a property with someone to either both live in or they receive some rent as an investment just isnt going to work. The latter you would struggle to get a mortgage for and former isnt a great idea - living with someone you dont know???

Ive moved in with my mrs after being together about 3-4 years and to say she annoys the hell out of me at times is an understatement and she would probably say the same about me but we can say things as it is to eachother and life goes on - you might not get that with someone else.

I think trying to save up a deposit even its a case of moving back home while you save up a deposit is probably the best route.

You might not be able to find an ideal property in your budget but if you look long enough something will crop up - i had to buy my house about 5 miles away from where i wanted and off a 92 year old man (so it was more of a doer upper - but its got everything i need and want in an area i like).

Sausfest

Thank you for the post, apologies, I should have given a bit more detail.

I do not have a partner to live with and I do not have any well off enough friends to consider going with them, I have no problem living with a stranger, so long as they are doing it for mutual benefit too, I'm currently renting a room with strangers so it's not that strange, is it?

I also do not have a 'home' to go back to, so saving for a full deposit is just un-obtainable for me.

I have no problem moving out to a cheaper area, I work in London so anywhere is easily commutable.

ACG

Buying somewhere is different to renting.
Your tied into to a commitment and one for a lot of money. If things dont work out it could become very costly to fix or very difficult to live with.

Sausfest

Well, yes, I know it's different.

The difference between having to pay rent or having to pay a mortgage is presumably the same? Which is what i'm already doing. Different consequences obviously.

Are there not other people that think like I do on this topic?

For example, people that can see the benefit of being on the property ladder but cannot afford to go alone?

Yorkie1

You are completely underestimating the things to consider when buying a house with someone else. What happens if one of you wants to sell up or leave, but the other doesn't? What if someone gets a partner and wants to move them in? What if the property needs maintenance but you can't afford to get it done, or can't agree on which quote to get? What if one person can't afford their nominal portion of the bills?

We see so many tales on here of people who buy together in a relationship, intending it to be a permanent arrangement, but it does not end up that way.

What you propose, to buy with a complete stranger, is bonkers. There is no long-term future in it as your lives move on in separate directions. If you share (rent) with someone, you can move out at the end of the tenancy term with no long-term implications. If you own a house together then it just isn't that simple.

Sausfest

I am well aware that relationships end and friendships breakdown, which is why I am trying to find the best course of action for ME.

My first two thoughts were:
A) Are there other people in my position, that can't afford it on their own but have the same goal as me, could that work?

I can't do this on my own, so what about a 'Rent to Buy' scheme or a 'Shared Ownership' idea, could they work? Are they safe?

"I know, i'll sign up to Money Saving Expert and ask!"

I came here to learn, not to be flamed for asking about my ideas.

hcb42

a) Unlikely

b) Terrible idea. Enough horror stories on here to keep you busy reading them for a while

Sausfest

Thank you for the answer, that's all I really needed to know.