Help,im in a quandry. Want to buy a house

spinningsheep

Guys, I need some advice here. I live in a private rented terraced house in a regeneration area. I have always admired the house opposite, same as mine but double fronted and an upstairs bathroom, and up until now, it has been owned by a private owner. the family recently moved out and the house went up for sale. The people who are a big part of the regeneration in my area are Beth Johnson Housing, and they are buying up the majority of houses as soon as they come on the market. They have bought the house opposite.My next door neighbours are Beth Johnson, and when they did the house up, basically the only original part of the whole house is the outer bricks, the rest is all brand new. The majority of people in these houses were relocated from round the corner, where all the houses were demolished in a clearance scheme, but we know all our houses are safe. I assumed that the house opposite would also be for people who were exsisting Beth Johnson tenants, but I have noticed a sign go up that says the house is a part ownership scheme. I called Beth Johnson and they say that the house will be £41,000, plus a ground rent of £91 for the other half of the house. The average price of a fully modernised terrace round here is about £80 - £85,000, so to me, it seems like a steal. The area is "on the up". At the bottom of the street they are building all new houses and apartments by the wharf of the canal, and they start at £55,000 for a studio apartment.

The trouble is, I dont think I would get a mortgage. So, what I want to know is, before I go getting mortgage advice and possibly getting all manner of credit searches done, does anyone here think I would get one?

I earn approx £17,000 year, im single, have no adverse credit in the last year, have just one unsatisfied default which is being repaid on a payment plan, 2 credit cards, a loan, and no rent arrears or anything in last 18 months. I have no savings, and would need a 100% mortgage. I have always wanted that house with a view to rent it, but now its up for sale at such a price, what do people in the know on here think?

maninthestreet

£85000 is five times your income, and you have not been able to manage the level of debt you currently have (payment plan for unsatisfied default in place). Clear this debt, and save up a deposit before thinking of buying a house).

Pez2

maninthestreet wrote: »

£85000 is five times your income, and you have not been able to manage the level of debt you currently have (payment plan for unsatisfied default in place). Clear this debt, and save up a deposit before thinking of buying a house).

Indeed but the OP would only be paying £41,000, which is about 2.5x salary.

Qual123

im sure someone would lend to you be i think you would pay alot for it, firstly due to your default and secondley because you want 100%. clear the default and get together a deposit, if you get down to 90% LTV it will make a difference.

Badger_Lady

It sounds like you may be able to - I had 100% LTV on my first mortgage, and it was 4x joint salary. More recently, I remortgaged and got 95% LTV on a mortgage 4.5x single salary despite an outstanding default.

I would see an adviser and work out the affordability - how much more expensive will it be than your monthly rent payments? In my case, I know I can easily afford it, and have the option to get lodgers in as well.

If you're comfortable that you could afford it, and you know you're happy with the house, then there's no harm trying. The worst that can happen is you get a "no" or an extortionate interest rate and you go back to renting. If you don't go for it, you'll always think "what if?".

Good luck x

Sooler

spinningsheep wrote: »

The trouble is, I dont think I would get a mortgage. So, what I want to know is, before I go getting mortgage advice and possibly getting all manner of credit searches done, does anyone here think I would get one?

Wouldn’t they only do any credit searches if you actually applied for a mortgage, anywhere should give you advice and info on their mortgage products – go to several places to see what they have on offer.

spinningsheep

Well. We met with a financial advisor, who is independant and provided through Beth Johnson. he came to our house and we explained everything to him. He said that realistically no matter how bad your credit history is, there is a lender out there willing to give a mortgage, albeit at a much higher rate,however, in a shared purchase scheme like the one we want to buy (ie buy half the house for £42,500 and rent the other half at £97 a month) there are a limited number of lenders who offer mortgages for this, and they are all high st lenders. The least stringent he said are Halifax through Birmingham Midshires, and based on earnings and the fact I only have one outstanding default in an arrangement to pay, he couldn't see it being to much of a problem, and to expect a monthly payment of about £300 on the mortgage, and that the bulidings insurance is all provided through Beth Johnson. I so hope I get it, the house is gorgeous and I have set my heart on it now. Oh well, should hopefully get a decision today.

maryotuam

Good Luck. I hope you manage to get the house of your dreams!

cattie

If you are single with no children are you sure you would be considered for the house?

Only in many cases with shared ownership a single person wouldn't be allocated a house that they consider too large for the single market. You mention the house is double fronted, so it sounds as if it could possibly be a 3 bedroomed house, which would be considered ideal for a family as opposed to a single person. Check the eligibility criteria for the actual property before you build your hopes up just in case.

lexa34

Did you get your decision???

Good luck.

spinningsheep

Sorry guys, my internet has been down for a few days so I couldn't post. bad news im afraid. We were declined, on credit score. They wouldn't say whether it was mine or my housemate's that has caused it, may well be both as they are less then perfect. Suppose its to be expected in the current financial climate. Just seemed like a great way to get on the property ladder. I cannot believe that only a few lenders will give a mortgage on a shared ownership house, and those that do are all high street lenders, and the main people that Beth Johnson are trying to attract to their houses are those who are not in a position to buy in say a more affluant area and are having trouble finding a home to rent/buy, yet they choose such hard lenders to gain a mortgage from. If there are other lenders out there, i havent been able to find one, and I daren't keep trying for mortgages, if my credit file is whats letting me down, I dont want to get even more footprints on my file and put my score down yet further. Oh well, was a nice idea but a no go. Will just stay put in my lil rented 2 up 2 down