To buy or not to buy - Confused

Clothkitty

I am currently living with my parents and desperate to move out. I have found a shared ownership house in a near by market town which suits me. The cost is £81,500. I have a £60K deposit so need a small mortgage to make up the difference. I am currently temping so can't get a mortgage in my own right and have been told my parents can't stand guarantor as they are too old (they are 80 and 79) which leaves me in a fix.

My only other pot of money is my pension fund. Should I raid that (if I can) to get the 21K I need or just let the house go?

schwam66

Clothkitty wrote: »

I am currently living with my parents and desperate to move out. I have found a shared ownership house in a near by market town which suits me. The cost is £81,500. I have a £60K deposit so need a small mortgage to make up the difference. I am currently temping so can't get a mortgage in my own right and have been told my parents can't stand guarantor as they are too old (they are 80 and 79) which leaves me in a fix.

My only other pot of money is my pension fund. Should I raid that (if I can) to get the 21K I need or just let the house go?

wouldnt do sharred ownership....with 60k surely there is a fixer uper or soemthing you can buy outright yourself? wouldnt for one second think about renting you have a lovely pot of cash there get onto the property ladder...all the best and good luck!

freeisgood

Please do read up on the pitfalls and possible traps of shared ownership. Plenty of threads on here. Go in with your eyes wide open. ( I would avoid them at all costs to be honest!!)

I have heard awful things like no being able to move as you cannot sublet/rent it out if you don't want to live there anymore.

Are you working? With such a good deposit I personally would try and buy non shared ownership, you will feel freer. You will be a lot freer! Even a small studio flat.

Best of luck!

Pixie5740

Are you absolutely positive that you cannot get a mortgage? A whole of market mortgage broker should be able to help you out.

Otherwise if you only need to borrow a small amount of money to buy somewhere then an unsecured personal loan might be a viable alternative.

Don't raid your pension fund.

freeisgood

Yes, if you are temping you are classed as self employed. I am self employed, you just need to work out your earnings from the past year or two( or three if you have been temping that long) and see what a mortgage broker suggests.

Clothkitty

Hi. Spoke to a whole of market mortgage advisor who said parents as guarantor was not possible.

Did not ask about the self employed aspect as though I was an employee of the agency I was working for, although I am being paid via an umbrella company. Is this something I could fudge?

Was looking at shared ownership as have moved to a very much more expensive area than where I previously lived and even fixer-uppers are out of my reach it seems

freeisgood

if you are being paid as an employee of the agency then surely you can get a mortgage? Worth asking.

Do read all the threads on shared ownership so you know all the pitfalls.

AliceBanned

If you have a good employment record over a few years, even if temping you might get a mortgage for that amount.

If you do go for shared ownership the lenders will factor in the rent and service charge costs on that house, so even though only looking for £20k mortgage, they will be looking for affordability based on the equivalen of a higher loan.

It is more difficult getting shared ownership than other mortgages, (they are classed as higher risk). I went for it last year and am reasonably happy - glad i did it because I would have got priced out even of shared ownership by now, if I hadn't gone for it when I did. If you like the area and the house is a good option for you, then the chances are it will be a good investment. Better than no investment I think, the way the market is at the moment ie prices going upwards fairly rapidly.