FTB confused by mortgages

doshi.cr

Hoping someone can help a first time buyer. So I am 33 years old, I have a wage of £40k per annum (contracted till November 2016). I have over £70k as a deposit with another £12k for mortgage arrangement fees, fees and stamp duty.

I live in London and am looking to buy a house at around £310,00 mark. My credit rating is very good. I live with my parents who both do not have an income.

I have looked around the web and been told that I will get at a stretch £186,000. Which leaves me £30k short of target price.

On speaking to a close family friend he told me I should try do buy to let. This way I could continue living with my parents while paying off the mortgage. On his advice I looked at a property of £340k. He convinced me that I would get a mortgage despite the fact I did not have 25pc deposit for the property and no other applicant income. Low and behold when I did speak to his broker I was told that lenders do not lend to first time buyers as they are seen as a risk and my applicant income was too low. I was advised to get someone with an income to help boost my application.

All of this has left me dazed and confused. I really want to kick start my life by getting on the property ladder, but can’t seem to get a break. I have been stuck in a cycle of saving and seeing prices rise. I’d rather this didn’t continue.

I know I could move out of London and travel into work, but my job, friends and family are all in south east London (Charlton) and I’d rather not move.

Is anyone in the same boat or anyone have any advice on what I should do next.

Thank you.

csgohan4

You would need to have a permanent job or guarantees after your current contract finishes as a minimum

Cornucopia

You seem to have all the relevant facts.

You could try to find someone else to buy/share with. Or someone to assist with your BTL application.

The other option is to move away from (probably over-priced) Charlton to somewhere cheaper, or alternatively look at a cheaper property.

If you have £256k to spend overall, you could look at these:-

http://www.rightmove.co.uk/property-for-sale/property-44350356.html

http://www.rightmove.co.uk/property-for-sale/property-60063512.html

http://www.rightmove.co.uk/property-for-sale/property-55954255.html


I know SE London extremely well. Feel free to ask about specifics areas.

amnblog

You have been unfortunate as 'CFF' does not know what he is talking about and neither does his Broker.

You should consider the London Help to Buy Scheme which has been designed for potential buyers like you.

I understand Vicitoria Way has properties on this scheme.

doshi.cr

Thank you for the replies. Also another question is the stamp duty. The government site says I will pay £8k.

CookieM

oops... replied to wrong thread

Cornucopia

doshi.cr wrote: »

Thank you for the replies. Also another question is the stamp duty. The government site says I will pay £8k.

You've mentioned different scenarios.

- For a straight residential purchase of £310k: £5,500 SDLT

- For a BTL purchase of £340k - £17,200 SDLT (*)

- For a reduced purchase price of £256k - £2,800 SDLT


(*) You would need to investigate the exact rules.