remove please...

guideme

....................

MaryNB

For most people the amount they can borrow is limited to 4.5x salary. You may get less than this if there are issues regarding affordability (e.g., high outgoings due to other debts or dependents) or your limited by your deposit. A limited number of borrowers can get above 4.5x but generally they have higher salaries and larger deposits.  

Do you have funds for solicitors fees, surveys etc?

Based on your salary you're looking at a max loan of £87,750 plus a deposit of £8k = £95,750. 
When you did your AIP with Natwest did you note any current loan repayments or dependents? If so that may have reduced your loan amount from 4.5x as a result. They need to make sure you can make the monthly repayments. Your limited salary may have had an impact on the salary multiplier.

You can check what schemes are available to you here: https://gov.wales/help-buy-home-schemes

There are brokers in the Mortgages & Endowments board that may be able help with your query.

[Deleted User]

Sadly the numbers just don't add up. Houses are basically unaffordable for individuals on above average salaries, so you have very little chance.

You will get the usual advice - look somewhere cheaper, get a better job, sell your iPhone etc. Ignore it, you know your situation and have doubtless considered these things.

Sorry it's bad news, but that's how it is.

Snookie12cat

It's almost a guarantee you don't get a house in Cardiff, especially with help to buy. 
You need to be looking in the deep valleys which I know most Cardiff folk will not want to do..

jenni_fer

Some good advice above.

We're based locally although not FTBs anymore. 
There are a few new build estates around which might have help to buy schemes but I'm not sure. 
There are probably a few flats around that will go for under £100k, but more likely to have to look further out or keep saving. 

grumiofoundation

[Deleted User] said:

Sadly the numbers just don't add up. Houses are basically unaffordable for individuals on above average salaries, so you have very little chance.

You will get the usual advice - look somewhere cheaper, get a better job, sell your iPhone etc. Ignore it, you know your situation and have doubtless considered these things.

Sorry it's bad news, but that's how it is.

As you have been asked before - how does ignoring anything ever help anyone?

Your logic seems to be either a) that everyone is already fully optimised their saving and minimised their spending - obviously you know this isn't true or b) that there is no point saving small amounts as it sont make a difference. Which is it? (neither is correct or helpful).

20 x 5 x 12 x 5 = 6000

Finding 5 ways to save £20 a month (e.g. get a cheaper phone contract, cut out one lunch out a week) is £6000 after 5 years (£7500 in LISA). That's not a small amount of money to me.


If you have nothing useful to post - why post at all?

Luckily not everyone on this site takes your attitude and many will actually make an effort to help posters. 

guideme said:

Hello,

I'm hoping to buy my first property within the next year or so, I've recently opened a LISA and have been looking into the Help To Buy scheme in Wales, which ends next March I believe.

I'm currently on £19500 so I know I wouldn't be able to afford much for my first place. I plan to save around £5-8k for the deposit.

I'm really overwhelmed with all the various options and schemes. I checked a mortgage calculator and it said I could get around £75-110k depending on the deposit. I did a mortgage in principle with NatWest who said £77k on a 35 year mortgage. Is there any way I can get more than that?

I'm looking to buy in Cardiff. I doubt I will be able to get a house for that much. I'm not against flats but I am really noise sensitive and have had bad experiences, I'm scared I'll end up buying a place where I can hear everything.

I'm also not sure if, considering my low salary, I should be going for Help To Buy as it's more expensive new builds, or if that's the better option for me either way?

Apologies it's all over the place I'm overwhelmed by the whole process.

Thanks for any advice you can offer!

With the HTB equity loan scheme you can borrow a 20% deposit. 

Comparing to the numbers posted above 
Based on your salary you're looking at a max loan of £87,750 plus a deposit of £8k = £95,750. 

As said in earlier post for a house in that price range you would be looking at the valleys for example somewhere like pontypridd being the closest to cardiff. If you want to buy in cardiff as you say flats are lookign at your only option. 

HTB would mean a house price of ~120,000 (87,750 mortgage, 23400 HTB loan, 8k deposit  

Based on a quick look at rightmove at the ~120k mark for new builds doesnt seem like there are many options at this price range - so maybe HTB won't be that helpful.


(Ignoring the rubbish quoted above) what is the outlook for salary increases in the near future, and what impact could this have upon affordability?

How long are you looking at to save the 8k? being able to save on sub 20k is good, and this may not be applicable but are there other opportunities to save/make money available?  Bank switches are a good way to make some easy money (mse weekly email or the budgeting and banks account forum a source for this info).

SavingPennies_2

[Deleted User] said:

Sadly the numbers just don't add up. Houses are basically unaffordable for individuals on above average salaries, so you have very little chance.

You will get the usual advice - look somewhere cheaper, get a better job, sell your iPhone etc. Ignore it, you know your situation and have doubtless considered these things.

Sorry it's bad news, but that's how it is.

The OP earns £19500, which is well below average salary! Just because you don't like the advice doesn't mean it isn't true or couldn't be useful for other people. You may be unwilling to make compromises but other people will in order to get their own home, so telling people they have very little chance or to ignore advice isn't very helpful.

badger09

SavingPennies_2 said:

[Deleted User] said:

Sadly the numbers just don't add up. Houses are basically unaffordable for individuals on above average salaries, so you have very little chance.

You will get the usual advice - look somewhere cheaper, get a better job, sell your iPhone etc. Ignore it, you know your situation and have doubtless considered these things.

Sorry it's bad news, but that's how it is.

The OP earns £19500, which is well below average salary! Just because you don't like the advice doesn't mean it isn't true or couldn't be useful for other people. You may be unwilling to make compromises but other people will in order to get their own home, so telling people they have very little chance or to ignore advice isn't very helpful.

rigolith is well aware that £19.5k is below average salary.
The point he/she is making that even those on above average salary have no chance of home ownership.

Unfortunately rigolith has absolutely nothing useful to offer on this subject, but continually posts his/her own agenda.
I am in no way agreeing with him/her, just clarifying the post. 

MobileSaver

[Deleted User] said:

Houses are basically unaffordable for individuals on above average salaries, so you have very little chance.

You keep making this false claim but it is simply nonsense. Lots of individuals on above average salaries can afford houses in lots of different areas around the country, many more so can afford houses when buying as a couple.

However the OP is on a below-average wage and is trying to buy in one of the most expensive areas of Wales so it's hardly surprising a house is unaffordable to them.

SavingPennies_2

badger09 said:

SavingPennies_2 said:

[Deleted User] said:

Sadly the numbers just don't add up. Houses are basically unaffordable for individuals on above average salaries, so you have very little chance.

You will get the usual advice - look somewhere cheaper, get a better job, sell your iPhone etc. Ignore it, you know your situation and have doubtless considered these things.

Sorry it's bad news, but that's how it is.

The OP earns £19500, which is well below average salary! Just because you don't like the advice doesn't mean it isn't true or couldn't be useful for other people. You may be unwilling to make compromises but other people will in order to get their own home, so telling people they have very little chance or to ignore advice isn't very helpful.

rigolith is well aware that £19.5k is below average salary.
The point he/she is making that even those on above average salary have no chance of home ownership.

Unfortunately rigolith has absolutely nothing useful to offer on this subject, but continually posts his/her own agenda.
I am in no way agreeing with him/her, just clarifying the post. 

Ah thanks I see what you mean I misinterpreted the post. But it's tiresome that rigolith constantly projects thier own negatively and offers nothing in the way of helpful advice (on this subject). Ironically from what I recall they have a healthy budget and salary to buy a property so could afford one, they just can't afford what they want. I know several people (including myself) who have bought recently despite being on or below average salary, they did so by compromising on location or size, and are now very happy to have their own home. The problem is some FTB want a house not a flat, garden, off road parking, thier first choice of location etc. That's understandable, we all want to live somewhere nice! But, if you want that and you can't afford it then you do need to cut back, or earn more money, or save/ wait for longer, or make a compromise. You can't change the housing market so either keep renting and moaning or make the best with your own situation to buy.

[Deleted User]

grumiofoundation said:

[Deleted User] said:

Sadly the numbers just don't add up. Houses are basically unaffordable for individuals on above average salaries, so you have very little chance.

You will get the usual advice - look somewhere cheaper, get a better job, sell your iPhone etc. Ignore it, you know your situation and have doubtless considered these things.

Sorry it's bad news, but that's how it is.

As you have been asked before - how does ignoring anything ever help anyone?

Your logic seems to be either a) that everyone is already fully optimised their saving and minimised their spending - obviously you know this isn't true or b) that there is no point saving small amounts as it sont make a difference. Which is it? (neither is correct or helpful).

20 x 5 x 12 x 5 = 6000

Finding 5 ways to save £20 a month (e.g. get a cheaper phone contract, cut out one lunch out a week) is £6000 after 5 years (£7500 in LISA). That's not a small amount of money to me.


If you have nothing useful to post - why post at all?

Luckily not everyone on this site takes your attitude and many will actually make an effort to help posters. 

guideme said:

Hello,

I'm hoping to buy my first property within the next year or so, I've recently opened a LISA and have been looking into the Help To Buy scheme in Wales, which ends next March I believe.

I'm currently on £19500 so I know I wouldn't be able to afford much for my first place. I plan to save around £5-8k for the deposit.

I'm really overwhelmed with all the various options and schemes. I checked a mortgage calculator and it said I could get around £75-110k depending on the deposit. I did a mortgage in principle with NatWest who said £77k on a 35 year mortgage. Is there any way I can get more than that?

I'm looking to buy in Cardiff. I doubt I will be able to get a house for that much. I'm not against flats but I am really noise sensitive and have had bad experiences, I'm scared I'll end up buying a place where I can hear everything.

I'm also not sure if, considering my low salary, I should be going for Help To Buy as it's more expensive new builds, or if that's the better option for me either way?

Apologies it's all over the place I'm overwhelmed by the whole process.

Thanks for any advice you can offer!

With the HTB equity loan scheme you can borrow a 20% deposit. 

Comparing to the numbers posted above 
Based on your salary you're looking at a max loan of £87,750 plus a deposit of £8k = £95,750. 

As said in earlier post for a house in that price range you would be looking at the valleys for example somewhere like pontypridd being the closest to cardiff. If you want to buy in cardiff as you say flats are lookign at your only option. 

HTB would mean a house price of ~120,000 (87,750 mortgage, 23400 HTB loan, 8k deposit  

Based on a quick look at rightmove at the ~120k mark for new builds doesnt seem like there are many options at this price range - so maybe HTB won't be that helpful.


(Ignoring the rubbish quoted above) what is the outlook for salary increases in the near future, and what impact could this have upon affordability?

How long are you looking at to save the 8k? being able to save on sub 20k is good, and this may not be applicable but are there other opportunities to save/make money available?  Bank switches are a good way to make some easy money (mse weekly email or the budgeting and banks account forum a source for this info).

You think 6k after 5 years is going to help? What planet are you living in?

This has been explained to you before. 20 quid a week is not going to fix this. You can't magically make the numbers work just because you want to believe that life is fair.

Giving people false hope is not helpful. Telling them to waste 5 years saving not enough money is just making things worse.