Buying a house in today's Brexit fueled climate

bonnand

Hello,

I am after some advice with regards to getting on the housing ladder.

I am 52 and my wife is 48, I am in full time employment with OTE of approx. £40k pa, my wife is mainly part time.

We have been renting for many years and have got to a point where we would really like to have our own place.

We were really trying to find the best options for us to follow and it is very confusing with regards to Help to Buy and Shared ownership. I am also mindful of the fact that I only have a short working life left ahead of me.

So any pointers would be gratefully received.

Thank you

middleclassbutpoor

Using OTE in the income - could you break down what your income is made up of as it sounds like there is some form of bonus/commission and the detail of that will alter what you can afford/borrow etc.

Your age is likely to have some impact on your mortgage term and this could therefore also impact on your affordability.

You are likely better off speaking to a broker who can fully understand your circs but if you could provide an idea of what deposit you could put down (make sure you consider moving costs etc. also.) and how your income is made up and be clear what is guaranteed/non guaranteed etc.

dunstonh

Buying a house in today's Brexit fueled climate

What is a Brexit fuelled climate?
And why do you think that has anything to do with your buying a house?

I would have typed this in black but in this Brexit fuelled climate I couldnt.

foxy-stoat

I would be more concerned about buying an overpriced new build using help to buy with a low deposit than anything brexit.....I WAS able to type in black as I dont buy into the brexit hype effecting house prices significantly.

bonnand

Hello all,

Thanks for some of the replies.

OTE is broken down as: £36K basic salary, £1.5k per month commission bonus plus as part of my epenses claim each moth i gain approx. £250 on top of my basic salary.

We have small savings of about £2500.

I mentioned Brexit as in my job, more and more customers are putting off projects an awaiting the ourcome. I was thinling along the lines of how it may affect mortgage rates etc.

Thanks, again

Thrugelmir

Have either of you ever previously owned property?

To get a foot on the ladder. How much would a property cost you in your locality?

thickasabrick

Run through the figures.

Simple example:
https://www.moneysavingexpert.com/mortgages/how-much-mortgage-borrowing#results
Annual income (pre-tax): £36000
Guaranteed bonus/overtime: £4000

Purchase property for £250,000
Max mortgage likely with those figures of £152,000.
The scheme has 39.2% of the value the property £98,000.

https://www.moneysavingexpert.com/mortgages/mortgage-rate-calculator#results
Repayment mortgage at £152,000 at 3% over 25 years costs £721 per month (23% of your pre-tax income).
Assumption: interest portion of £ 98,000 at 3% over 25 years costs £245 per month.
Total £966 per month

Some schemes offer a discount percentage on the rent/interest payment in the early years. If you want to buy out the scheme at the end of 25 years typically the house is valued and you pay them 39.2% of the value of your property.

Were I live just now, if I had used such a scheme 10 years ago for a £250,000 property it would be valued at £400,000 today. To buy out 39.2% now would require £156,800 to pay off the £98,000 and the growth in equity that the scheme is entitled to.

I'm sure someone more knowledgable will be along shortly to post about the complexities of different types of schemes and what the advantages and disadvantages might be.

I personally am quite biased against these schemes, as in I think "Help to Buy" should properly be called "Help for property developers and banks".

Food for thought - "How Much House Can I Afford?"
http://lifeandmyfinances.com/2017/11/how-much-house-can-i-afford/

bonnand wrote: »

Hello,

I am after some advice with regards to getting on the housing ladder.

I am 52 and my wife is 48, I am in full time employment with OTE of approx. £40k pa, my wife is mainly part time.

We have been renting for many years and have got to a point where we would really like to have our own place.

We were really trying to find the best options for us to follow and it is very confusing with regards to Help to Buy and Shared ownership. I am also mindful of the fact that I only have a short working life left ahead of me.

So any pointers would be gratefully received.

Thank you