FTB house prices!

first_time_stressed_buyer

Help! I'm a first time buyer and in a pickle! I now have a 10% deposit but due to house price rises what lenders will allow me to borrow plus my deposit is no longer enough! I can't even seem to afford a 1 bed flat! Most lenders only seem to allow 4 x salary and due to house price increase, realistically I need a lender than can look at lending 5 or 6 x my salary! Anyone having the same problem and found a solution or lender that can look to help?
*I understand everyones financial situation is different and without know my finances in more detail you can't confirm what I can/can't do, more just looking for pointing in right direction*

hazyjo

Three options I can think of. Change location, increase your earning potential, or buy with someone else.

I've bought many times - compromises were made with most of them.

Where are you looking and what's the max budget?

MaryNB

Some banks will only go to 5x if you have a high salary and low LTV.  

There are a few brokers in the Mortgages & Endowments board who may be able to give some more detailed guidance but most people are capped at 4.5x due to FCA rules. 

grumiofoundation

Have you looked at help to buy equity loan? 

Sistergold

Shared ownership purchase and then staircase to 100% ownership will be another way to buy. You just need to get your foot into the door somehow. 

[Deleted User]

Sadly this is all too common now. Additionally as a FTB some people will reject your offers in favour of people with experience.

Moving to another area is pointless, house prices reflect local wages.

Getting a better job is often very difficult when you are in the early stages of your career.

Prices are rising too fast to keep up with your deposit, so increasing that is unlikely to be possible or will take many, many years.

Shared ownership might work, but be careful. Some schemes are not very good, and good offers are rare at the moment.

Do you have any elderly relatives? Try to get in their good books, a hefty inheritance would really help.

grumiofoundation

rigolith said:

Sadly this is all too common now. Additionally as a FTB some people will reject your offers in favour of people with experience. Even if this is widespread, which I would doubt, not really anything that can be done about it 

Moving to another area is pointless, house prices reflect local wages.
It's not a consistent relationship across the country though is it? Many areas are cheaper relative to average wage than others. Depending on your job the salaries may be almost identical whereas house prices dramatically different.

Getting a better job is often very difficult when you are in the early stages of your career. Depends on your job.

Prices are rising too fast to keep up with your deposit, so increasing that is unlikely to be possible or will take many, many years. Increasing deposit almost certainly will be possible, how much is the question. The amount that can be saved and how this compares to house price increases (when combined with potential pay rises) is what matters. 

Shared ownership might work, but be careful. Some schemes are not very good, and good offers are rare at the moment.

Do you have any elderly relatives? Try to get in their good books, a hefty inheritance would really help. Lovely attitude. Any ideas to speed up the inheritance?

Lot of sweeping statements.

Thrugelmir

[Deleted User] said:

Moving to another area is pointless, house prices reflect local wages.

Something which has affected many generations. Surrey (for example) has never been affordable for the majority. My friends moved far and wide. 

Chooru

Thrugelmir said:

[Deleted User] said:

Moving to another area is pointless, house prices reflect local wages.

Something which has affected many generations. Surrey (for example) has never been affordable for the majority. My friends moved far and wide. 

Most of the East is like this too. You're looking at 220k for a 1 bedroom flat in a rundown area and 250k minimum for a 2 bedroom flat.

A house? Well, a 5 mile radius around me, and the cheapest 2 bedroom house is 345k. 

first_time_stressed_buyer

Thanks all for your comments!! To try and answer as much as I can:

- I'm in the North West and already looking as far and wide as I can for something to crop up within a reasonable commute. I am willing to compromise. 
- I am unable to buy with someone else. 
- I  a skilled worker and love my job, I have a good wage working for a good company. I am not willing to leave it. I have looked at other companies in the area just to see if I could negotiate a pay rise... I'm already being paid more!
- I have looked at shared ownership, there is currently not much available other than 25% share plus the rent, I would be paying more out than I currently am in rent! (so much for affordable housing) 
- help to buy looked promising but again, not much currently available and again, do not seem to feel very affordable!
- I have family willing to help, we have looked at family deposit mortgages to top up the difference but after speaking with lenders it doesn't seem to increase the price I can buy for 😔.

Thanks all for the input though! 

p00hsticks

[Deleted User] said:

Moving to another area is pointless, house prices reflect local wages.

Not entirely true - if you look at large companies, or public sector areas, they may still operate a London weighting and/or have regional pay scales, but any pay difference across areas is in no way proportional to the difference in house prices.

Teachers outside 'London and the fringe' are on the same scale all the way across England, for example.