First Time Buyers wanting to get on the property ladder

Terribabylove

Both myself and my husband have no idea where to start. We have been living in rented properties (housing association) since 2008 so buying a home and getting a mortgage is a whole new thing to us :embarasse
Im 29 (30 in october) and my husband is 30 (31 in october) and were not getting any younger lol, we also have 3 children together and have been together nearly 9 years

My husband is a full time Baker at morrisons and earns around £14000 a year.
Im a full time mum and get child tax and child benefit meaning I only get around £4800 a year.
We have no savings and to make things worse we have a bad credit rating due to no fault from us.

The bad credit rating is due to some problems we had back in 2008 when we got our own place to live with an housing association. My husband at that time left his job etc...... in Manchester and moved to Burton upon Trent to be with me. He started looking for a job instantly and housing benefit were taking there time and we struggled to pay the rent and other bills because of this, my husband found a job within the first 2 months of living in our new home but in those 2 months of struggle it gave us a bad credit rating.
My bad credit I think is worse due to having my identity stolen back in 2003 I think it was, before I met my husband. I had a credit card with lloyds TSB (will never own a credit card again as was a big mistake) and my details were stolen, whoever stole them brought products from abroad ect... and left me in nearly £2000 + interest in debt. This has now been sorted but left my credit score on the bad side.

Im guessing because of that getting a mortgage is going to be very difficult or we may not get one at all.
Any advice or help is much appreciated?? any help we could get?? what mortgage could we get?? etc...

We have looked into the help to buy scheme and was hoping if anyone here could shed some more light on that?? and also if we would be entitled to it??

Thank you in advance from Terri

Foxy-Stoat_3

Firstly, dont pay for your credit score.

All satisfied defaults will disappear from your credit history after 6 years....maybe get a credit card to build up some positive credit history.

At 5 times annual salary the maximum you will be able to borrow will be £70,000 so aim for properties £75,000 or less.

You will need at least 5% of the purchase price cash as a deposit and fees in the bank before looking at properties or help to buy mortgages.

Good luck and get saving !

amnblog

You will need a deposit Terri. Possibly 5% probably 10%.


Help to Buy might be of benefit to you - worth looking at.


Also consider shared ownership.


https://www.gov.uk/affordable-home-ownership-schemes

Terribabylove

Foxy-Stoat wrote: »

Firstly, dont pay for your credit score.

All satisfied defaults will disappear from your credit history after 6 years....maybe get a credit card to build up some positive credit history.

At 5 times annual salary the maximum you will be able to borrow will be £70,000 so aim for properties £75,000 or less.

You will need at least 5% of the purchase price cash as a deposit and fees in the bank before looking at properties or help to buy mortgages.

Good luck and get saving !

Do houses even exist at that price?? we would need a 3 bed minimum due to the kids, also do you know about the help to buy scheme?? dont they help you with the deposit as a equity loan and mortgage?? Thank you for any help and thanks for the advice

Terribabylove

amnblog wrote: »

You will need a deposit Terri. Possibly 5% probably 10%.


Help to Buy might be of benefit to you - worth looking at.


Also consider shared ownership.


https://www.gov.uk/affordable-home-ownership-schemes

What is shared ownership exactly?? is it living with strangers?? Thanks for the advice

Foxy-Stoat_3

Depending on what part of the country you are at and the state of them.

What you need and what you can afford to borrow are two different things unfortunately.

You will not get off the ground without 5% cash plus fees and moving costs. If you research Help to Buy then you will see what the equity loan is all about, whether you will be able to secure it again will depend on individual circumstances.

Terribabylove

Foxy-Stoat wrote: »

Depending on what part of the country you are at and the state of them.

What you need and what you can afford to borrow are two different things unfortunately.

You will not get off the ground without 5% cash plus fees and moving costs. If you research Help to Buy then you will see what the equity loan is all about, whether you will be able to secure it again will depend on individual circumstances.

We are in Burton upon trent, would need to move to Branston in burton to be close to family and with my mother being ill im her full time carer, we dont drive so moving closer would benefit us and my care for my mother, thanks

[Deleted User]

Terribabylove wrote: »

What is shared ownership exactly?? is it living with strangers?? Thanks for the advice

It's where you don't buy the entire property, but a 'share' of the 'ownership'. Sometimes you need to pay rent on the part you don't own (e.g. you own 50%, you pay a rent on the other 50%).

Foxy-Stoat_3

Terribabylove wrote: »

We are in Burton upon trent, would need to move to Branston in burton to be close to family and with my mother being ill im her full time carer, we dont drive so moving closer would benefit us and my care for my mother, thanks

OK, I don't know the house prices there.

Good luck with the saving.

Terribabylove

ringo_24601 wrote: »

It's where you don't buy the entire property, but a 'share' of the 'ownership'. Sometimes you need to pay rent on the part you don't own (e.g. you own 50%, you pay a rent on the other 50%).

Oh right I understand, can anyone buy the house with us or is this just for buying from a landlord or housing association?? Can this be done moving a new home?? Thanks

amnblog

Have you visited the link I put in my earlier post?


information on both EL and SO is there.


If this Development (below) goes ahead you can expect properties under these schemes there.


http://www.burtonmail.co.uk/new-community/story-21506203-detail/story.html