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Wannabe first time buyer need help!

Befferssmith
Befferssmith Posts: 2 Newbie
edited 29 December 2019 at 7:14PM in House buying, renting & selling
Hello!

Im a teacher who is married with no children. Unfortunately my husband cannot work due to health reasons and we are therefore struggling to buy somewhere where I work. I work in Hertfordshire so rent and house prices are high. I have found a house I love that is near work and ticks all the boxes. However I went to the bank and they gave me An agreement in principle for £126k, my credit rating is excellent and I’m not in any debt anymore (not even enough to buy a static caravan round here!). The house I’ve seen is up for 200k. My mum doesn’t work due to her health but she does own outright a house valued at around 700k. She wants to help me buy the house I’ve seen but we don’t know how to go about this. Equity release advisor advised against equity release and the bank didn’t know what to suggest as my family is cash poor but asset rich.

Does anyone know if my mum would be able to help in anyway, and if so how? She has looked at selling the house but this might take a while. Would my mum be eligible for a bridging loan? Are there any other options?

Thanks in advance.

Comments

  • Vestra
    Vestra Posts: 856 Forumite
    Sell the £700k house and buy two £350k houses, easy.
  • That would be the easiest option, however my mum doesn’t want to buy a house that isn’t detatched and in a built up area. She has no income so wants to buy somewhere and then a rent spare room so she has some form of income.
  • Cakeguts
    Cakeguts Posts: 7,627 Forumite
    Sixth Anniversary 1,000 Posts Name Dropper
    The answer to this is that you can't buy a house in Hertfordshire on your income but since you are a teacher and on a national pay scale you could move jobs to a cheaper area of the country and buy there. If not you are going to cause your mum to leave her home. Really this is a problem that you could solve by not trying to buy in an area where you can't afford to.
  • My brother is a teacher and only looked for jobs in areas where he could afford to buy a house, It's a real shame that people like Teachers and Nurses simply can't afford to buy homes in many parts of the country.

    If you really want to stay in Hertfordshire then maybe you can wait for Mum to downsize and help you out or would she be willing to consider moving slightly north with you for more affordable properties. Prices start to drop as soon as you go into Bedfordshire and Cambridgeshire and they have nice schools there too ! I would prefer to be as independent as possible rather than rely on parental finances.
    Decluttering, 20 mins / day Jan 2024 2/2 
  • AdrianC
    AdrianC Posts: 42,189 Forumite
    Eighth Anniversary 10,000 Posts Name Dropper
    You have three choices...

    1. Move in with her. She's rattling around a huge house on her tod.
    2. She sells and downsizes, gifting or loaning you equity.
    3. She releases equity. She isn't going to get a straight mortgage, so equity release it would be.
  • Flugelhorn
    Flugelhorn Posts: 7,452 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    I think whatever you do mum would be advised to buy somewhere smaller with income potential, with no income it is going to be hard to maintain / heat a bigger house. If she wants detached and not built up area, maybe she needs to look elsewhere too where there may be more choice
  • You don't mention how much of a deposit you have in savings? If the bank will lend you a max of £126k and your dream house is £200k you have a deficit of £74k, how much of this do you already have?

    Your mum has already looked at equity release and has been advised against it, you say yourself that it may take some time to sell her house so the chances are that this house will be sold before you have your finances together to be able to make an offer. Unless a lottery win happens.

    In order to be in a better position the next time a great property comes along you need to save like mad to bridge the distance between what the bank will lend you and local property prices. If you mum has a house that is worth £700k and is looking to have a lodger could you and your husband not move in for a time and save on rent/ bills? Whilst I appreciate this isn't ideal for a married couple it could help you increase your savings much faster than being in rented accommodation.

    Failing this, as others have said, you mum would need to sell her house or you need to move to another area both of which will take time.

    Good luck
    • Original mortgage end date: March 2041
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    • MFW 2025 #15 £2878.00/ £2,400 /// MFW 2024 #15 £1,608.85/ £2500 /// MFW 2023 #15 £8,617.84/ £10,000 /// 2022 #15 £7,315.24/ £7250 /// MFW 2021 #15 £8,530.07/ £8500
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  • kangoora
    kangoora Posts: 1,193 Forumite
    Eighth Anniversary 1,000 Posts Name Dropper
    If we moved in with my FIL I'd be up on a murder charge within a month (probably 2 weeks tbh) and I'm generally a very laid back, easy-going person :D
  • Cakeguts
    Cakeguts Posts: 7,627 Forumite
    Sixth Anniversary 1,000 Posts Name Dropper
    Personally I think leaving mum's house out of the equation would be a good idea. If mum sells her house and buys another and then doesn't like the new one you are going to get the blame for it. You are also going to have to be grateful for the sacrifice she made for the rest of your life and when she gets old and bad tempered you are going to know about what being grateful means. If mum had the spare cash and gave it to you that would be different but mum is going to have to move to give you the money. The only reason she is giving up her home is to give you money. I couldn't stand my mother but even I would not have done that to her.
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