First time buyer: key worker, how do you afford monthly payments

ruggedtoast

Running_Horse wrote: »

The unfairness come from the random designation "Keyworker". I do not work for the public sector, but the NHS could not survive without the products I make, yet I do not qualify for discounted housing.

As for the quality, nobody is forcing anyone to buy these shoddy rabbit hutches, but you can be sure they are exactly the same quality as the privately bought ones which go for a higher price to support the "affordable" element.

The fact that one section of society is helped to buy homes, just fuels prices in general, making the problem worse, not better. There should be affordable homes for everyone, not just government employees.

Did you read what I wrote? Keyworker schemes do not assist anyone apart from Browns cronies in the building trade. They are a rip-off devised to further enslave the less well off in debt by conning them into buying something at a considerably higher price than a private buyer would consider.

Running_Horse

ruggedtoast wrote: »

Did you read what I wrote?

Sorry, I can't be doing with incoherent rants. There was something in there about hysterical firemen and toxic swamps, but not much practical help relating to the OP. I suspect we agree on general principles, but that is not what this discussion is about. Are you related to Squatnow? Please don't answer that question.

Strapped

redrabbit29 wrote: »

I live with my girlfriend, and we rent a 2 bedroom house which is £750 per month.

We are both key workers, although I don't want to use the keyworker scheme as I've heard negative things, such as how much of the home you actually own, etc...

I've looked briefly at some mortgages and I think I used a calculator which said I could borrow up to £180'000. However, the monthly payments on most mortgages are around £1100 a month. That is nearly £400 more than what I am paying now. How would you suggest I could cut this down to no more than £900ish?

My income per year is: £25'000
My girlfriends is: £21'000

We have no debt, and no loans outstanding.

Thanks.

Depends where you live.

£750 a month would pay the interest only on approx £150-160k mortgage, depending on the deal you got obviously. (NB Interest only, ie renting from the bank). Can you buy a 2 bed house for that kind of money where you live? If not, I'd definitely stay renting (and especially if house prices are softening).

redrabbit29

Running_Horse wrote: »

I asked about your take home pay after deductions. The reason being, many mortgages are offered on the basis of affordability and credit history, rather than straight multipliers. Only you can decide what sacrifices you are willing to make in terms of social life, holidays, cars etc. But with a deposit of just £3,000 I would strongly suggest you save up more, and see what prices do in the meantime.

Oh sorry, mis-read that!

My take home pay per month = £1350
My girlfriends about = £1100

I could save up a bigger deposit and I'm always trying to save so I'll continue to do so.

What would suggest is an ideal and realistic deposit?

redrabbit29

PasturesNew wrote: »

You don't HAVE to own a home.
It's not compulsory.
It's a 'new thing' really, invented not long ago.

Funny you say that I've always argued with my Dad/Brother that I find it hard to see the point in buying a house these days. SO expensive, unstable mortgage rates (I think).

I pay £750 a month for a nice 2 bedroom house. If anything breaks I get it repaired free of charge.

Negatives are I can't do what I want, e.g. paint the house black (Not that I would want to). I am paying money "down the drain".

However, at this stage of my life is it worth buying?!

Maybe it's not. I'll keep on saving, you never know, maybe I'll end up spending all my money on a car instead of a house!

Thanks for the post.

Running_Horse

So the mortgage would take up all your girlfriend's pay (I'll let someone else calculate the % of your joint income). It is possible if you cut right back to the basics, but perhaps not wise in the current market.

What would I suggest is an ideal and realistic deposit? 100%. Sorry, joking. 10% mentioned by Lavendyr sounds reasonable, but it can be done for less, depending on the market and property.

But from your tone, I imagine you know this is not the right thing to do yet. Assuming you are both young, live a little, and put off the whole mortgage thing until circumstances are better.

Soprano

With respect, have you really thought this through properly?

What I mean is, it sounds like you can only afford something around £900 per month maximum. Which you may be able to find eventually, but is sounds like you haven't considered the interest rates do go up....

I'm really not trying to be as smart @ss either but there are lots of people who took out fixed (low) interest rate loans only to really suffer when that period ended and they have to pay £100's more per month. We're going to see a lot more of that next year..

EliteHeat

Running_Horse wrote: »

Sorry, I can't be doing with incoherent rants. There was something in there about hysterical firemen and toxic swamps, but not much practical help relating to the OP. I suspect we agree on general principles, but that is not what this discussion is about. Are you related to Squatnow? Please don't answer that question.

What kind of pathetic insult is this? ruggedtoast explained the keyworker scheme in an informative, entertaining and cogent fashion. You, thought it was more sensible to rubbish his / her efforts without bothering to read them and perhaps educate yourself a little.

Is this how you live your life?

Running_Horse

EliteHeat wrote: »

What kind of pathetic insult is this? ruggedtoast explained the keyworker scheme in an informative, entertaining and cogent fashion. You, thought it was more sensible to rubbish his / her efforts without bothering to read them and perhaps educate yourself a little.

Is this how you live your life?

Oh grow up. Informative, entertaining, and cogent? I've heard more informative, entertaining, and cogent comments from a five year old. I notice you have no useful comments for the OP. Just insults for those who do.

pinkshoes

redrabbit29 wrote: »

Oh sorry, mis-read that!

My take home pay per month = £1350
My girlfriends about = £1100

I could save up a bigger deposit and I'm always trying to save so I'll continue to do so.

What would suggest is an ideal and realistic deposit?

I would recommend borrowing no more than 3.5x your joint salary (so borrow a MAXIMUM of £161k), and ideally a MINIMUM deposit of 10% (so you need to save around £16k).

If the interest on the mortgage is less than you pay in rent, and providing you can also make the repayments on top of the interest, then buying is a good option.

A mortgage of £150k would have £750/month interest (equal to your rent), so I suggest you start saving hard over the next few months! If you're struggling to save, then you would struggle with a mortgage payment, as this £750/month is just the interest.