Help to buy - Now or never! How much can I borrow?

Firestarters

Hi guys young lad here, was planning on enjoying another a year or two in some cars I had my eyes on, however I just checked and HTB funding is being cut in April 2021 to max value of 180k house price outside of London.. I happen to live in Birmingham unless there's a massive house pricing crash there's no way I will be able to find a new build in a decent area in the West Midlands for that price range to take advantage of the 20% government lending so the time is to forget cars now and sort myself out. ASAP.

I Just have some questions, I have 60k in the bank for deposit, however job wise I'm currently unemployed, I don't have any skills to get a decent salaried job, at best, I'd be lucky to find a job, that pays me 20k a year like a call center worker of some sort..

- If I got a 20k a year job and another job either full time or part time which would be another £10k on top of the 20k a year job would I be able to use both jobs to count towards my mortgage lending sum of £30k a year?

Worse case scenario I only have one job with a 20k salary, with my £60k house deposit on top of the 20% HTB loan with NO debts, ( I have 3 credit cards, one with 10k one, one with 1.5k on) what would the max a specialist mortgage broker be able to get me?

Would it be best to apply for a mortgage on my own name too, my mother works part term and earns 12k a year according to her P60, HOWEVER, she has one or two ccj's and a few credit accounts that either have late payments, defaults.

It must be a new build house simply as I would not be happy buying a house that's not new build I would need to rip everything out to be comfortable living there.

Is shared ownership a bad idea, I've noticed majority of new builds under shared ownership do not have a garage and are not detached and only being able to own up to 75% of the house seems off putting.

Location I'd be looking at moving too would be Solihull/Hall Green/Kings Heath but would have to meet criteria above as these areas are more desirable than other areas within central Birmingham if you happen to know Birmingham well, also they are perfect for communting.

I'm hoping with the above information I could get a new build house with a budget of £350k lol?

Sorry for long winded post but I hope for those in the know, that is enough information to give me an accurate idea on where I stand.

Thanks

[Deleted User]

Firestarters wrote: »

Hi guys young lad here, was planning on enjoying another a year or two in some cars I had my eyes on, however I just checked and HTB funding is being cut in April 2021 to max value of 180k house price outside of London.. I happen to live in Birmingham unless there's a massive house pricing crash there's no way I will be able to find a new build in a decent area in the West Midlands for that price range to take advantage of the 20% government lending so the time is to forget cars now and sort myself out. ASAP.

I Just have some questions, I have 60k in the bank for deposit, however job wise I'm currently unemployed, I don't have any skills to get a decent salaried job, at best, I'd be lucky to find a job, that pays me 20k a year like a call center worker of some sort..

- If I got a 20k a year job and another job either full time or part time which would be another £10k on top of the 20k a year job would I be able to use both jobs to count towards my mortgage lending sum of £30k a year?

Worse case scenario I only have one job with a 20k salary, with my £60k house deposit on top of the 20% HTB loan with NO debts, ( I have 3 credit cards, one with 10k one, one with 1.5k on) what would the max a specialist mortgage broker be able to get me?

Would it be best to apply for a mortgage on my own name too, my mother works part term and earns 12k a year according to her P60, HOWEVER, she has one or two ccj's and a few credit accounts that either have late payments, defaults.

It must be a new build house simply as I would not be happy buying a house that's not new build I would need to rip everything out to be comfortable living there.

Is shared ownership a bad idea, I've noticed majority of new builds under shared ownership do not have a garage and are not detached and only being able to own up to 75% of the house seems off putting.

Location I'd be looking at moving too would be Solihull/Hall Green/Kings Heath but would have to meet criteria above as these areas are more desirable than other areas within central Birmingham if you happen to know Birmingham well, also they are perfect for communting.

I'm hoping with the above information I could get a new build house with a budget of £350k lol?

Sorry for long winded post but I hope for those in the know, that is enough information to give me an accurate idea on where I stand.

Thanks

Assuming this isn’t a wind up and that you can get 2 jobs giving you an income of £30k pa there is not a snowball’s chance in hell you will be able to purchase a £350k property using HTB EL. Even if you were somehow able to include your mum’s income you’d still be very short.

Firestarters

And why would it be a wind up post? I'm trying to get advice on how best to prepare myself at only chance in getting on the property lader ladder on the HTB scheme as you can't get a decent new build house for 180k in Birmingham or other parts close to the above deseriable locations which will be the max HTB will lend come 2021, with the scheme ending completely in 2023..

If I don't get on the scheme before 2021 it will put me in a very difficult possition to buy a decent house in a deseriable area with no desire to move for a considerable amount of time.. this scheme lends 20% of house price with my 60k that will help excessively..

Do people just spend all their time judging people on here as I've seen it plenty of times? Quite sad tbh, seems people don't have a life, you haven't posted any constructive to my question. If you think this is a typical troll post or must be school holidays post then don't bother commenting, you can scroll along!

BoGoF

Have a look at online mortgage calculators.

You will not be able to borrow anywhere near what you need on £30k a year.

MortgageMamma

As a rough guide, look at 4.25 x your income less any outstanding debts you have. If you have debts better to pay them off as running a house is a big commitment.

I get people asking me if they could borrow more if they had a second job all the time, and the answer is usually no. It is not sustainable for most people to have a full time job and a part time job. certainly not in the long term. I've seen people do it and it never works out. Running a home is expensive business, on 20k a year you'd be lucky to manage at all let alone have a reasonable lifestyle.

Your best bet is waiting, build up your career, take some courses to improve your potential, keep saving money as best you can and then, when you are comfortable buy a property.

There is more to life than owning your home. If you are comfortable living with Mum stay there and use it to your advantage.

ceb1995

we had a 30k income between two of us when we bought our house and we were very lucky to be allowed to borrow 140k but that was at 95% ltv, so i would imagine no more than a 210k house would be possible even then it could be less.

Originally we thought we'd go for new builds but In our city new builds are so much smaller than older houses (i imagine it's similar in many other places) we bought an early 1980s house and we have spent about 20k getting it to how we wanted but we have the space to be able to stick an extension to the side or back in the years to come, new builds wouldn't give you the option for that in most situations as they don't tend to come with much land at all.

Yes living with lots of work needing doing was challenging at times but it was well worth it as I know if we bought a new build and when it came to having kids it would be way too small for us.

gaz_moose

how have you amassed 60k without a decent job? if you genuinely have that much then clear your debts, unless you get more in interest than the interest rates on your debts.
most lenders will lend 4.5 times your salary so that's 90k by my maths if your on 20k. im not sure a lender would see you having 2 jobs just to pay the bills as sustainable.

monthly repayments on a 350K house will be over a grand.
this is why people buy smaller houses pay down the mortgage and trade up. life is all about compromise... a bit like cars, you start out with a Corsa Limited Edition and slowly work your way upto a BMW M6.

[Deleted User]

Firestarters wrote: »

And why would it be a wind up post? I'm trying to get advice on how best to prepare myself at only chance in getting on the property lader ladder on the HTB scheme as you can't get a decent new build house for 180k in Birmingham or other parts close to the above deseriable locations which will be the max HTB will lend come 2021, with the scheme ending completely in 2023..

If I don't get on the scheme before 2021 it will put me in a very difficult possition to buy a decent house in a deseriable area with no desire to move for a considerable amount of time.. this scheme lends 20% of house price with my 60k that will help excessively..

Do people just spend all their time judging people on here as I've seen it plenty of times? Quite sad tbh, seems people don't have a life, you haven't posted any constructive to my question. If you think this is a typical troll post or must be school holidays post then don't bother commenting, you can scroll along!

If you were even remotely serious you would have read the information on the HTB website, which would have explained why your idea is a non-starter, before writing chapter and verse on why you can only live in a new build.

Firestarters

gaz_moose wrote: »

how have you amassed 60k without a decent job? if you genuinely have that much then clear your debts, unless you get more in interest than the interest rates on your debts.
most lenders will lend 4.5 times your salary so that's 90k by my maths if your on 20k. im not sure a lender would see you having 2 jobs just to pay the bills as sustainable.

monthly repayments on a 350K house will be over a grand.
this is why people buy smaller houses pay down the mortgage and trade up. life is all about compromise... a bit like cars, you start out with a Corsa Limited Edition and slowly work your way upto a BMW M6.

I used to work before since I was 16 in same job put some money aside since then in a savings account. Reason why I am currently unemployed is because of year away travelling the world.

Indeed speaking to the mother now she said be realistic ain't happening unless either of us come into serious money within the HTB deadline for a price range of the housing bracket I suggested.

Lover_of_Lycra wrote: »

If you were even remotely serious you would have read the information on the HTB website, which would have explained why your idea is a non-starter, before writing chapter and verse on why you can only live in a new build.

I DID!
I was hoping someone who was a mortgage broker on here would come along and say yes because of your deposit they know some specialists lenders who would lend the amount I am after!!

MortgageMamma wrote: »

As a rough guide, look at 4.25 x your income less any outstanding debts you have. If you have debts better to pay them off as running a house is a big commitment.

I get people asking me if they could borrow more if they had a second job all the time, and the answer is usually no. It is not sustainable for most people to have a full time job and a part time job. certainly not in the long term. I've seen people do it and it never works out. Running a home is expensive business, on 20k a year you'd be lucky to manage at all let alone have a reasonable lifestyle.

Your best bet is waiting, build up your career, take some courses to improve your potential, keep saving money as best you can and then, when you are comfortable buy a property.

There is more to life than owning your home. If you are comfortable living with Mum stay there and use it to your advantage.

Thanks for your response this is very useful and good to know having a second job wouldn't be taken into consideration for a higher lending amount.

My outgoings is very small just car insurance and fuel, help mother out with rent very little other is spent on social life, I have no debts.

I still have a year left funding for university so I think I might out that to go use and get my masters degree in health and social care carrying on from the HND I got the same subject in college.

Yes very comfortable living with mum but feel like it would be nice if we could buy a property as our rent is £700 a month which I think would be better on a mortgage.

So now I've seen the reality it's either a new build house with a max value of £200-£210k with my circumstances or house in a deseriable area over my budget where it will obviously be shared ownership and hope if that's the route I take with a 10-15 hear plan of eventually moving out of SO to owning a property out right, it pays off.

Firestarters

BoGoF wrote: »

Have a look at online mortgage calculators.

You will not be able to borrow anywhere near what you need on £30k a year.

I did look prior to making this thread but was in denial and was hoping a mortgage broker would come along and said with the deposit I have, It would be possible with certain lenders they have access too.

ceb1995 wrote: »

we had a 30k income between two of us when we bought our house and we were very lucky to be allowed to borrow 140k but that was at 95% ltv, so i would imagine no more than a 210k house would be possible even then it could be less.

Originally we thought we'd go for new builds but In our city new builds are so much smaller than older houses (i imagine it's similar in many other places) we bought an early 1980s house and we have spent about 20k getting it to how we wanted but we have the space to be able to stick an extension to the side or back in the years to come, new builds wouldn't give you the option for that in most situations as they don't tend to come with much land at all.

Yes living with lots of work needing doing was challenging at times but it was well worth it as I know if we bought a new build and when it came to having kids it would be way too small for us.

See I wouldn't mind not going the new build route but if it was to buy any house other than new build I'd have to gut and rip everything out and start again with a blank canvass to be remotely happy and satisfied to live there.

I don't mind too much about the issues surrounding space with a new build tbh, I wouldn't want a massive garden but would have some sort of garden as it would be a plus when looking to sell. The rooms size doesn't really bother me so much as it'll be easy to maintain, I don't plan on having any kids of my own in the near future.

One suggestion my mother did put out there was to buy cheap houses either auction/open market that is in need of renovation work that's straight forward to do and flip on with the view of making a decent enough profit after taxes/legal fees, rinse and repeat essentially until I had enough of a deposit that would widen a lot of doors when it comes to my ownership.

DCFC79

Why buy in Birmingham ?

Maybe a flat could be a better option.


Only issue with flipping houses is you could get 1 that looks great but when you/or the trades person you ask to do some work uncovers some other work that needs x amount spent on it which could eat into your profits.