Thoughts? Realistic chance?

9217niall

Hello,

I've moved out of my girlfriends place after a split and I'm now camping in the very crowded spare room at my parents' house - not ideal!

I've got two scenarios that I'd like to ask, please don't shoot me down and TIA

Shared Ownership... how does it really work? If I had a 25% stake at 35,000, would I have a better chance of getting the mortgage? How easy is it to increase stake?

Alternatively, what are the odds on me getting a mortgage for a small 1/2 bed place, around £80k?

I'm currently in my first role as a store manager, 22k a year basic salary

I've got 9k in my savings, my only outgoings at present are £200 for my car, £80 p/m insurance and £44 phone contract...probably spending 100 p/m on fuel

Thanks in advance, just wanted to gauge some opinions!

marksoton

Two words. Good broker.

dimbo61

Can you buy a 1/2 bed property in the area you want for £80,000?

9217niall

marksoton wrote: »

Two words. Good broker.

Next question... as I'm totally blind/new/entering the unknown..

dimbo61 wrote: »

Can you buy a 1/2 bed property in the area you want for £80,000?

Yes, this one's nearer 90 than 80..
http://www.rightmove.co.uk/property-for-sale/property-35692059.html

This too, http://www.rightmove.co.uk/property-for-sale/property-54636890.html?premiumA=true

Playing_with_Fire_2

How long have you been in the role/employed?

Think about the outgoings you'd have if you were living alone, and work out how much you'd have spare after essentials and mortgage payments/ground rent/shared ownership rent. Use online calculators and ask your parents for advice if you don't know how much things were costing at the ex's. Then do the same but with a higher interest rate. These are the thoughts that the mortgage company will be having.

The fact that you've saved up a 10% deposit is positive, but you will likely be asking to borrow a high multiple of your salary. Lenders will ask about affordability, ie how much money you have available for mortgage payments. The more you can save up while staying with parents the easier it will be getting the mortgage agreed

tightasagnats

From what I've learned from people I know who bought into shared ownership, if you can buy your own place outright you're in a much better position for all sorts of reasons.

Mainly, you'll own the whole place, and won't have to pay rent i.e. dead money on the part you don't own. It can be a good way to get in, and you can easily buy more of a share later, income allowing, but you're restricted:

You usually can't sublet a shared ownership property, so if you decided to move out and rent it out, say in the event of a job loss, that would be against the rules.

As someone else said, consult a mortgage broker. There are many on this site. I would also advise if buying by yourself, always go for a 2 bed if you can, as it will be easier to sell and you can rent your spare room should you need to. Good luck!

dimbo61

Thoughts !
Straight away I like the 2 bed flat over the 1 bed flat.
Only £6,000 more but you then have 2 bedrooms which you can store JUNK or Rent out TAX FREE for up to £7500 a year.
The size of both bedrooms is OK if you shop at IKEA and try not to fill it with furniture that is TOO BIG. Double bed with drawers underneath, mirror wardrobe from IKEA if it will fit (measure carefully), Chest of drawers with 6/7/8 drawers ( http://www.ikea.com/gb/en/catalog/products/00293244/ )
Check out Spareroom and Easyroommate to see what level you can charge in Kettering, Speak to Letting agents and look on gumtree.
The 2 bed flat gives the bad news straight away !!!!
£1,000 service charge and £200 ground rent
You have a 10% deposit and want to borrow say £77,000 which is less than 4X your Income.
Do not forget all the costs involved in buying as they can add up.
Small house will not have service/management/ground rent charges

dimbo61

http://www.rightmove.co.uk/property-for-sale/property-36493074.html

I also like this as it has 2 good sized bedrooms and is modern so cheap to keep warm and maintain.
But it is shared ownership so you might not be allowed a Lodger and you need to find out about staircasing ( buying the other 75% )

In the 2 bed flat a mortgage of £77,000 with Yorkshire ( 5 year fix at 90%LTV is 3.59%) so about £390 a month

The 2 bed house has rent of £215 a month plus mortgage on £27,000 at say 5% of £158 so £381 in total.

You would need to check about any service/management charges for the Shared ownership property