1st time buyer, can't borrow enough money

oli356

Spoke with a mortgage broker (think that's the correct term..), seems like I could borrow £250k after all, 1.69% 35 years, £780/month is what he came back with from Nationwide.

Seems like their policy on bonuses is an average for the past 2 years and then they take like 50/60% of the amount as mine aren't guaranteed and the amount can vary.

So pleasantly surprised as wasn't expecting it to be so much. Still not going to rush out of the house though, hopefully house prices don't rise too much more, but thinking going to stick to my 2 year plan and be gone by then, or at least deep in the process of doing so.

Catmaspudding

Unfortunately the market is awful for us at the moment.

I was in pretty much the same boat as you.

I really, really didn't want to do shared ownership as it seems to make the problem worse in the long run ie,

You don't own the property and you have no more rights than a tenant
With rent, service charges and a mortgage it gets hard to 'staircase' up
Pretty sure it drives up house prices because if the scheme didn't exist they just wouldn't sell, and house prices would have to become more affordable

I seriously considered flats 1.5 hour commute from work (I work in London unfortunately).

I really wanted my first home alone, but in the end I brought with my boyfriend. It is rubbish that I 'had' to buy with someone to get on the property ladder, I wanted that decision to come more naturally.

If you can get a place, even a flat, it is worth it just due to property value increasing so much. My friends got houses a few years ago that I could afford now, but prices have skyrocketed and I can't live in their area.

I am not an expert, but this is just based on my own experience. Everyone is struggling to get on the ladder the way our parents did, it is nearly impossible now. In the future it might be impossible own outright (not for first-time buyers with a low budget) - I've heard that some new builds are no longer freehold.

Probably not useful advice - but I feel your pain!

martindow

Skiddaw1 wrote: »

The Lyndhurst was a local of ours for some years when we had a flat just around the corner! Mr Cod was still going strong when we left town as was Ye Babam Ye (best kebabs in Reading). Pity Bella Flora closed (used to buy my Christmas wreaths from them) and it was an even bigger shame when Arthur Hill pool went defunct but many of the old Cemetery Junction institutions remain....


Do you remember when there was a cinema at the Junction (the Gramby)?

The Lyndhurst I think has changed hands a few times recently but it often seems busy. There is a scheme to build a new pool in Palmer Park replacing Arthur Hill and the new Bulmershe sports centre and pool is about to open.


Yes, I remember the cinema. The Marquis of Granby pub nearby is now an ice cream parlour which is back open after repairs following a lorry running into it.

Skiddaw1

martindow wrote: »

The Lyndhurst I think has changed hands a few times recently but it often seems busy. There is a scheme to build a new pool in Palmer Park replacing Arthur Hill and the new Bulmershe sports centre and pool is about to open.


Yes, I remember the cinema. The Marquis of Granby pub nearby is now an ice cream parlour which is back open after repairs following a lorry running into it.

I remember the lorry incident well (we were still in the area then). I liked it when Sprinkles put a banner up to confirm they were still open and that they preferred people to park in the car-park behind the shop rather than IN the shop...:)

Crashy_Time

Catmaspudding wrote: »

Unfortunately the market is awful for us at the moment.

I was in pretty much the same boat as you.

I really, really didn't want to do shared ownership as it seems to make the problem worse in the long run ie,

You don't own the property and you have no more rights than a tenant
With rent, service charges and a mortgage it gets hard to 'staircase' up
Pretty sure it drives up house prices because if the scheme didn't exist they just wouldn't sell, and house prices would have to become more affordable

I seriously considered flats 1.5 hour commute from work (I work in London unfortunately).

I really wanted my first home alone, but in the end I brought with my boyfriend. It is rubbish that I 'had' to buy with someone to get on the property ladder, I wanted that decision to come more naturally.

If you can get a place, even a flat, it is worth it just due to property value increasing so much. My friends got houses a few years ago that I could afford now, but prices have skyrocketed and I can't live in their area.

I am not an expert, but this is just based on my own experience. Everyone is struggling to get on the ladder the way our parents did, it is nearly impossible now. In the future it might be impossible own outright (not for first-time buyers with a low budget) - I've heard that some new builds are no longer freehold.

Probably not useful advice - but I feel your pain!

Wonder how long the government will keep running the schemes that will surely lose them votes after the Brexit issue is done and dusted, and I`m sure people said at one time the UK would never leave the EU so I wouldn`t count on the present property bubble being a feature of the future if there are enough people willing to vote against it, all Labour need to do now is campaign on removing props to the housing market that bail out developers and bankers, land reform and changing the voting system and they get my vote and probably a lot of others too.

lisyloo

Crashy_Time wrote: »

Wonder how long the government will keep running the schemes that will surely lose them votes after the Brexit issue is done and dusted, and I`m sure people said at one time the UK would never leave the EU so I wouldn`t count on the present property bubble being a feature of the future if there are enough people willing to vote against it, all Labour need to do now is campaign on removing props to the housing market that bail out developers and bankers, land reform and changing the voting system and they get my vote and probably a lot of others too.

But labour didn’t get enough votes did they?
This is a housing thread but the vast majority of the population are not obsessed with housing policy and it is not high on their priority list.
In the election just gone I’d say brexit, nhs, police, climate change, immigration were all higher priority than housing policy.

Even if labour do win, people have 5 years now to get in a great position with equity whilst having their own place whilst prices are rising. It’s a win win win and no I don’t disregard all risks, just think the case for buying is an overwhelming mathematical near certainty.

kerri_gt

Skiddaw1 wrote: »

I remember the lorry incident well (we were still in the area then). I liked it when Sprinkles put a banner up to confirm they were still open and that they preferred people to park in the car-park behind the shop rather than IN the shop...:)

I live nearby but dot go to Reading often, wondered what had happened.

OP I have a friend who bought a three bed terrace in Tilehurst as a single person at less than your figures quoted, needed work but perfectly doable.

Drawingaline

Oli, I am in basingstoke, our three bedroom ex council house is probably worth around 250k atm, they have come down a lot. There are a lot of new apartments right opposite the train station and a 20 min train to Reading three/four times an hour. (husbanhas to use it daily). A lot of basingstoke is old Council estates, some better than others, but the houses are big compared to newer three/four beds. With a bit more of a budget you could possibly buy in one of the smaller villages serviced by stations on the reading line.

It's a nice enough town, good transport links to m3/m4/m40, and rail links to London, South Coast, Reading and Oxford. I imagine it's not a lot of people's first choice, I never imagined living back here, but family are here an we were previously in Brighton where price were ridiculous. We bought this house for 10k less than we sold our flat there!

Good luck with your search.

scholesfan88

Crashy_Time wrote: »

https://www.housepricecrash.co.uk/forum/index.php?/topic/235669-40-apr-!!!!!!-martin-lewis-warning-for-anyone-currently-overdrawn/

How many FTB`ers will be feeling the squeeze even more?

I wouldn't expect FTB'ers to be regular users of their overdraft.

Crashy_Time

lisyloo wrote: »

But labour didn’t get enough votes did they?
This is a housing thread but the vast majority of the population are not obsessed with housing policy and it is not high on their priority list.
In the election just gone I’d say brexit, nhs, police, climate change, immigration were all higher priority than housing policy.

Even if labour do win, people have 5 years now to get in a great position with equity whilst having their own place whilst prices are rising. It’s a win win win and no I don’t disregard all risks, just think the case for buying is an overwhelming mathematical near certainty.

So to take one of your examples, you think climate change could have been a bigger factor in someone voting for Brexit than believing that house prices were too high due to too many people coming into the country? Immigration is directly linked to housing policy, and as I have said in the past there would never have been a vote for Brexit if the Tories had allowed Labours property bubble to deflate instead of desperately trying to keep pumping it up. Your advice to buy buy now to win win win could put someone in the position of borrowing a ton of money at the very peak of a property bubble and sliding straight into negative equity, however I think that events in China are going to show up in the credit/debt markets pretty strongly and mortgages will probably be affected along with other debt instruments meaning that even if people wanted to overpay for basic shelter the banks won`t let them, all in all bad news for sellers expecting a bumper payout from their house IMO.