First Time buyer London ~ what to do? H2B Shared etc

Dseed100

Hi all I would appreciate peoples advice.

I live in London, and am a single 36yr old looking to potentially buy my first property after April. I have one last default on my credit report that clears following 6yrs in March 😇 so should be all good then, my credit file is perfect except for that.

I work for the NHS as a nurse and earn £57,000 per year, so a good solid reliable job. I have zero debts or dependants, except for 1 credit card which I spend roughly £200 a month on and always pay the whole balance fully every month.

I will have roughly 25k deposit, could maybe push for 30k. 

I wanted to know thoughts on if I would get accepted on a mortgage for a 1 bed flat with a rough cost of 275k to 300k.

failing that I’m considering either help to buy scheme or shared ownership (50%)

what are peoples thoughts on my situation? I would really appreciate any advice or people who have done similar?

Thanks
Daniel

blue_max_3

Sounds like you should be fine. But must say I was shocked you earn £57k as a nurse! Not making any judgements at all, but assumed you were all on £20-30k. Can't understand why we're short of them!

Dseed100

blue_max_3 said:

Sounds like you should be fine. But must say I was shocked you earn £57k as a nurse! Not making any judgements at all, but assumed you were all on £20-30k. Can't understand why we're short of them!

Thanks Max  - I’m a senior nurse (Matron). Also get a London allowance from the NHS of roughly 5k a year. Which is factored into the 57k

Crashy_Time

blue_max_3 said:

Sounds like you should be fine. But must say I was shocked you earn £57k as a nurse! Not making any judgements at all, but assumed you were all on £20-30k. Can't understand why we're short of them!

Stress levels, and the fact that they should be getting 80k a year + for that level of responsibility over people`s health and wellbeing? 

Crashy_Time

Don`t waste your salary in the London bubble, especially with these ridiculous schemes to keep basic housing expensive for hard working folk, move somewhere cheaper so that you can commute and stay over at work maybe if doing a few consecutive shifts? (I get that you might want to go home between shifts though)

MaryNB

You might be better off asking in the Mortgages & Endowments section. There are a few brokers who post there.

Generally if your credit history is good and your income is secure getting 4.5x your salary is a safe assumption and there are more 90LTV mortgages back on the market than there were in the second half of 2020 (some may come with restrictions though). Halifax (and possibly others) can do 4.75x which would bring you up to £270k mortgage + £30k deposit. Some lenders will do 5x but your LTV might be a bit low to get that multiplier. 

numbercruncher8

Save more money, and to paraphrase Trump, stand back and stand by.
Unless you just got into your job recently, IMO your level of savings are low.
Assuming an modest level of expenses you may be able to put aside £2k a month, maybe more. 
Saving more would put you in a great position, and you could probably then go for places in the £350k bracket which, in a commutable area should get you 2 beds or a small house. The jump from 1-bed to 2-bed/house is a very good bang for the buck.

At present the market is very much on your side, and that is real unlikely to change in the next 12 months.
IMO you are more suitable for HTB than others, but the point of that scheme is to help people buy properties they can't afford. So if you use it, it should be with a bigger property in mind, although whether you need that or not depends on how you see your future, kids, etc.

Crashy_Time

Great advice.

Crashy_Time

https://www.theguardian.com/money/2021/jan/20/help-to-buy-is-only-helping-to-push-up-the-price-of-our-flat#comments

Great to see discussion that used to only take place on enlightened property forums now all over the MSM.

gwynlas

Hi, Congratulations on clearing up your credit record. It really depends where you are working as to where you should buy as well as where you socialise. Be careful re falling for ex local authority or for flats with high service charges and ground rent.

NinjaTune

blue_max_3 said:

Sounds like you should be fine. But must say I was shocked you earn £57k as a nurse! Not making any judgements at all, but assumed you were all on £20-30k. Can't understand why we're short of them!

Entry level for a Band 5 Nurse is currently just under 25K.  As  Matron, the OP will be a much higher band and probably been in the role/banding for quite a while (there's a yearly increase up to top of banding).  Most nurses on the wards will be in the lower Bands 5 - 6 and outside London 'weighting' (not sure of the new name) will not be eligible for the associated uplift.