First time buyer jargon and confused!

dmg24

Could we ask what income you have toker?

phlash

gabyjane wrote: »

Hi well i'm very new to all this aswell and we are in the process of buying a house, it's S/O so will make a big difference on the repayments.

Ours has just been valued at £155k and we are only buying 40% of it, the repayments are £400 per month and then bills on top so as you can see it's a lot really but affordable for us. If we bought a house around £140k we'd be well over the £1000 per month mark! which i refuse to do tbh.

Also don't forget the insurances etc that go with them to secure you in the future we are still trying to figure out what's best!

Good luck with it all and i'm sure you will find something, we used a financial advisor and he is fab, done everything and taken a lot of the stress away, maybe you could call a few and they will help.

What about the rent part of the S/O? how much is that?

Gwenrose

xxtokerxx wrote: »

See this is the type of thing i would be interested in part ownership schemes.

I don't understand though, my mum, sister and brother have all told me the same, they all own their own properties out right in an expensive area?

Why would they tell me something that isn't quite true?

I know my brother had a total income at one stage of 1,500 (him and the missus, that covered 2 cars, 2 mobile phones, internet, housing, food and plenty of social life, try and budget that with minimum of £1k on housing, don't think he could have lived the way he did?

You people i would imagine have a better clue than me hence why i am here.

But things are clashing, needing some clarification more so on the part ownership schemes

As you have the information about your mum and your brothers financial status, why don't you ask them how they were able to obtain the payments etc on their properties. But could I just point out that you say your mum has nearly paid off her house, how long has she had her mortgage?
How long has your brother had his mortgage, it makes a difference and what type of mortgage do they have. You can't just say this is the cost of their mortgage and this is what they pay without knowing what type of mortgage they have. Maybe your brother has a fixed interest rate mortgage, or endowment. Time and type make a big difference.

Another question you need to ask is how secure is your job and what are your job prospects? I hate to put a damper on your enthusiasm, but in the 80s a lot of people we knew had their homes reposesed because they took on to much and lost every thing, very much like the climate we are starting to experience now. Why not try to arrange some interviews with mortgage lenders and get some information on what your options are, they will look at all your financial commitments and advice you on what you can afford.

Belive me the biggest dept and headache you will ever have is a mortgage and it would still be nice to be able to afford to eat.

gabyjane

Hi the rent part on ours is £150 per month so the total is £550, we can't even rent anywhere half decent for that so we think it's very cheap! we are fortunate to be currently renting a friends house for a small amount and have been able to save which is nice!

gabyjane

Hi toker the way it works where we are is you have to be on all the housing lists in the area, this then gives you more choice where you can be, we were on the list for 7+ years before ours came up and we are so excited! we have watched it all being built for what seems like forever now and can't wait to get in...anyway sorry!! you should get offered houses, they can be new build or resale and they vary from size etc depending on what you request and require to wether you are clessed as priority. The rent half and mortage will also very depending on the size of the house aswell and also how much of a share you buy.
Like i said it's awful where we live and nothing ever comes up, the minute they do theyv'e gone again so we are very lucky, hopefully if it's something you do look into it won't be as hard as it was for us!! Good luck.

Lavendyr

May I suggest you look into a houseshare? It would be the easiest way for you to save money (as you will typically pay around £300-400 pcm, sometimes including bills) towards a house of your own.

Without you giving your salary it is hard to know what you could and could not afford, but at your age and in the current market, I realy think that the best thing you could do would be to rent for a while, ideally sharing with others, and see what happens in the next 3-4 years.

nick22abdn

On a standard mortgage for the full amount of £140k payments would be as follows (interest only mortgage):

Assume you can get a rate of 6.5%

£140,000 x 0.065 = £9100 (interest accrued per year)

£9100/12 = £758 per month

(Before anyone points it out, I know this is a simplified model but it gives a rough idea)

To get everything in for £500 per month:

Other costs

Electric - £30
Gas - £30
Buildings and contents insurance - £20
BT line - £10
Broadband - £15
TV licence - £12
TOTAL - £117

Allowing you £383 per month for you mortage/rent

This would pay a £70,700 mortgage or approx half the value of the flat. Quite possible if you have a £70k deposit?

As for shared ownership, I believe there are lots of people trying to get on such schemes so it may take a while. The exact criteria vary from area to area so the only way you will get concrete info is from the local HA

Good Luck!

beingjdc

xxtokerxx wrote: »

I don't understand though, my mum, sister and brother have all told me the same, they all own their own properties out right in an expensive area?

Well obviously you can have as expensive a house as you want for £1k a month if you already own it outright! It's mortgages we're talking about. Average rates are around or just over 6%, so as a rule of thumb the interest part of a mortgage will be about £500 a month for every £100,000 you borrow.

Seriously, I had to share until I was 25, calm down, find a nice shared house in town, make some new friends, save some money up!

PasturesNew

Re those bills.
You forgot:
Water Bill - £15 (could be more/less depending where you are and how often you wash)
Council Tax - £65-80

So really, rounding it up, that's another £80-100 you have to pay each month

zag2me

My advice would be a rented houseshare while you save up more money and gain some more earning potential. Look on gumtree or rightmove for loads of them, even if its with students or young professionals, it can be lots of fun.

As already mentioned you would need about a £70,000 deposit to get the figures you are looking for on a 140k property.

Most people buy between 25-35 years old, so you would be very lucky to own a house at your age. If you set your mind to it, it can be done.

Good luck!