Mortgage Help!!!

HSL2310

I don't think I can be the only one ever in this situation so really looking for some help of where to look for more information or advice.

Both my husband and I have been married previously and owned our own properties. For a variety of reasons we no longer have those properties or any equity from those - so essentially starting from scratch.

When we go together, after a while decided to live together we went into a private rental property. Because between us we have 4 children of different genders we have to have a 4 bedroom home which significantly increases our rent and outgoings. All affordable but what it means is that we are never going to be in a position where we can save in excess of £30k for a deposit on a property.

What options do we have to buy our own home or are we stuck in rented? Just to add that this makes me more and more anxious that as we get older each year we are going to get to a stage where nowhere will lend to us!

Please help!! :A:money:

Retired_Mortgage_Adviser

If you feel comfortable sharing the following info, I could give you a very rough indication of how much you might be able to borrow on a mortgage. The good thing is that you have a 30k deposit, which is somewhere to start with.

- The age of the older one in the couple
- employment situation and total household income
- any unsecured debt (cc, personal loan, car payments, etc)
- any adverse credit history?

If you want to get a professional to look at the entirety of your circumstances and advise you on whether you can get a mortgage and if so what your budget is, I would recommend contacting a broker for a no-obligation preliminary chat. Plenty of options for that - local, online, telephone, etc.

foxy-stoat

I read that as they couldnt save £30,000 deposit.

Help to buy is an option if you can save 5% deposit, but that will be for a new home though.

What is the price of a new 4 bedroom house out your way?

ACG

How much can you save?
How much would it cost to buy what you want?

Ultimately you need to get to a 5% deposit as a minimum, the mortgage would be based on affordability, so if you can not get a mortgage for the amount you need then you would need a bigger deposit.

On a side note... 4 children, different genders means 3 bedrooms, one for the boys, one for the girls, one for you. Unless we are going down the route of non binary or gender fluid?

diggingdude

Likely going down the route of ex partners not wanting their children to share a room with a non biological relation

Mortgage_Adviser

Well, you can even live in a two bedroom place for a sake of saving. And sacrifice having a living room.


Back in the day you would easily see a number of children charing a room even being a different gender.


It is all about short term gain for a long term pain.


Would any of your parents be able to put a security deposit with the banks whilst retaining the full ownership of the money? There are schemes like Barlays Springboard up theere

scholesfan88

Perhaps shared ownership with a 5% deposit?

Thrugelmir

HSL2310 wrote: »

we have to have a 4 bedroom home which significantly increases our rent and outgoings.

We all have to make tough choices if we wish to realise our dreams. No easy solutions unfortunately.

Verix

Potential options that could help you buy would be

- Shared Ownership
- Section 106 properties (sold at reduced market value)
- New builds with Help to Buy

Personally i would consider them in that order if you are in a situation where deposit is a struggle. Generally speaking you are going to have to find a way of sourcing some deposit yourself though, be that from savings or family gift.

[Deleted User]

I'd imagine it would be Shared Ownership.

One word of warning, I always expected some red tape with shared ownership, being a government linked scheme - but I've recently started the process and there's a heck of a lot of forms etc.

Also a lot of the housing associations want to know if you've got a gifted deposit (and if so, potentially want personal info from the donor!) and bank statements, payslips etc.

I've supplied more to them than I'll supply to the mortgage company that underwrite my application!!

Also for S/O - one lender does 100% mortgages, meaning in theory you could go straight for it now and only need to have costs saved - but I also imagine many of the housing associations aren't too keen on that. But in your situation, they may well be more accommodating.

[Deleted User]

To throw in to the mix (although I would never advise it as the perfect solution), there is a very particular option where your deposit can come from a personal loan.

This can work if you have very good affordability but don't have the deposit.

I've only done 1 or 2 like this out of hundreds and hundreds of applications so it's not the normal way of doing it but it's another option.