Considering Buying

pad1231

Ok so in the area i live lets say property is growing fast and a 2bedroom flat would cost you at least 140k. I live at home still but have saved 45k for a deposit and have some extra for other costs and a little to live on if i did move out. Im on a 25hour contract basically meaning i get about 235 a week after tax but i always do more hours anyway and come out with 3-400 a week but i guess theres technically no guarantees there although I've done it consistently for over 2years now.
I was just wondering on costs(living alone+moving fees) and wether its a good idea/possible for me to live comfortably like this cause i have it easy at home but would obviously like my own place and the way the markets going i may be frozen out of my home town soon enough. Basically want my independence but not be housebound by costs as i like to get about a bit.
Id also considering renting out the spare room if i needed to to bring in some income but not sure what sort of affect this has on a mortgage? Any help would be much appreciated thanks.

csgohan4

your wages are low and Lenders only go on the now not if you get a lodger.


Try putting your figures into a mortgage calculator and see if you can borrow the amount you need.


Don't forget other costs with owning a house, maintenance, insurance e.t.c

ViolaLass

£12-15k a year is not going to buy you much independence or getting around.

DCFC79

Your going to have to ask your employer if you can go full time or look for a full time elsewhere.

neilwchad

If it helps I earn 16,500 a year, have 40k deposit got a AIP for 40k = 80k to buy.

If you secure a 95k mortgage please tell me how you did this because I am finding the housing market geared towards people earning 25k a year. People below this figure have little chance.

csgohan4

neilwchad wrote: »

If it helps I earn 16,500 a year, have 40k deposit got a AIP for 40k = 80k to buy.

If you secure a 95k mortgage please tell me how you did this because I am finding the housing market geared towards people earning 25k a year. People below this figure have little chance.

They have little chance due to affordability and for a good reason. It would be silly for ppl on 16k having 200k mortages with LTV 95%. they would hardly be able to afford.


It's to prevent ppl getting into arrears and prevent the next banking crash

Debtslayer

Earning 16.5k the absolute maximum you will be able to borrow is going to be 74k (4.5 x salary)
Are you really sure you're ready to buy anyway? You say you live at home and have it easy and when you buy you still want to live and go out. Not saying you won't be able to do that but buying a house doesn't just stop at getting a mortgage. There's all the other bills and if something goes wrong, eg boiler you have to pay for repairs/ replacements
Sounds like you'd be better off staying at home for another couple of years and carry on saving and looking for better paid jobs

Well done for saving such a good deposit, when you're ready to buy that will be such a great deposit to put down anx put you in a lower ltv

neilwchad

csgohan4 wrote: »

They have little chance due to affordability and for a good reason. It would be silly for ppl on 16k having 200k mortages with LTV 95%. they would hardly be able to afford.


It's to prevent ppl getting into arrears and prevent the next banking crash

I agree. However, that said how will people on low incomes ever be able to afford to buy? If I didn't have the deposit I have what could I buy for 44k? I contribute to economy. My job plays it part in society. I never caused the banking crisis. Yet people on the lowest incomes are becoming more and more excluded from something simple as owning your home. Id like 60k to borrow. I have no debt, very good credit, large deposit. Lucky I have only tried on high street lender.

I would also like to add I do not know of anyone who lost their home during this resecession other than those who perhaps lost their jobs because businesses struggled or central gov funding for local authorities was cut resulting in jobs losses. Not forgetting tax payers helped bail out the banks. That's the frustrating thing.

csgohan4

neilwchad wrote: »

I agree. However, that said how will people on low incomes ever be able to afford to buy? If I didn't have the deposit I have what could I buy for 44k? I contribute to economy. My job plays it part in society. I never caused the banking crisis. Yet people on the lowest incomes are becoming more and more excluded from something simple as owning your home. Id like 60k to borrow. I have no debt, very good credit, large deposit. Lucky I have only tried on high street lender.

I would also like to add I do not know of anyone who lost their home during this resecession other than those who perhaps lost their jobs because businesses struggled or central gov funding for local authorities was cut resulting in jobs losses. Not forgetting tax payers helped bail out the banks. That's the frustrating thing.

There was a problem with the 100% mortgages, people who didn't have deposits and low to medium income used them


Why would the rich need such a high LTV mortgage when the mortgage repayments would make it financially unviable?


It's not just a matter of being on low income. It's about being able to afford. Most ppl say buy a house it's cheaper than renting. What they don't tell you is the freeholder asking for repairs going into the tens of thousands shared amongst the other leaseholders. Not to mention the baggage that guys with owning your own home, no more crying the LL for a broken down boiler.


Just because you pay tax and have an income doesn't give you the right to buy a home. Buying a house is a privilege not a right and must be treated as such, with respect.

ViolaLass

Are you after a £100k mortgage or a £60k one? Your story has changed.

pad1231

I didn't change my mind on what i wanted some one just replied saying they were in the same situation as me! And yes id be after say a 95k Mortgage. Currently with the overtime i do i manage to save around 10k a year but for example my friend bought a flat for 145k 2 years ago and its now valued at 165k so just feels like I'm fighting a losing battle although obviously my LTV rate would decrease I'm still after the same mortgage amount.

There are some 1 bedroom flats available at around 120k meaning id only need a 75k mortgage but i just feel this limits the potential in terms of lets say renting out the extra room although the payments would obviously be easier on myself. Thanks for the replies though guys guess I've got some thinking to do. Not really sure a better paid job is an option though sadly as we would all love that wouldn't we. But the current growth rate in price is rather alarming but just cant see an end in sight.