Getting on the ladder

tracy76

Hello

I am looking for some advice on getting on the property ladder. I am on a relatively low income and have no deposit, but my job is very stable. My parents have offered to help me out but are not sure which way to go about it.

They own their house outright (value app £240 000) and we are hoping that I can get a mortgage based on their house as a backup of some sort such as them being my guarantors, or something similar to this.

If anyone has some advice I would be glad of it

Thanks

T

kinesin_2

Wait.


The ladder isn't a ladder if your in negitive equity. In 3 years time you will get a lot more of house for your money.

From the BBC web site..


Can you guess where it's going?? By september house price growth will be sub zero, and this will just accelerate price falls. (When the SUN prints the headline)
FTB haven't been buying for about 18months, BTL have stopped, the market is reversing - it just takes time to filter into all the figures.

Currently your best to rent - it costs less per month than a mortgage and you can use the saved cash to save - you don't risk losing a big chunk of money as the prices keep falling, and it keeps you mobile incase of a downturning economy.

meanmachine_2

tracy76 wrote:

Hello

I am looking for some advice on getting on the property ladder. I am on a relatively low income and have no deposit, but my job is very stable.

I don't know of any job that's "very stable". What is your profession, funeral director? Tax man?

Maybe if you give us you salary details, and other outgoings (debts), the experts on here will be able to give you advice.

Personally I wouldn't ask my parents to risk their home to help me. I'd want to fund my own mistakes. But that's just me.

If you're a key worker, you can get help. Otherwise, the advice is to work hard, save hard and hope that the market turns in your favour.

Sorry.

spl0dge_2

tracy76, the property market is dead.

wait.

deemy2004

Nice graph...

nelly_2

Tracy 76 there are a few people on this webby that are waiting, now REALLY isnt a great time to buy.

MrBen_4

What's the rush. Everything is so overpriced. If it gets any worse you may aswell emigrate. I am seriously considering this and half preparing for it at the moment.

A friend of mine has enough cash in the bank to buy a place outright - he is still sitting tight and renting at the moment. I don't know if that is the best thing to do as he wouldn't need a mortgage, but I guess if the interest on his 'deposit' is covering the rent it does make sense since we are more likely to see falls than gains over the next few years.

EdInvestor

deemy2004 wrote:

Nice graph...

LOL

This one's even nicer

GDB2222

http://www.nationwide.co.uk/hpi/historical.htm

Good place for detailed regional price movements

London: Average prices in Q2 of 2005 are highest ever, and 4% up on Q2 of 2004. OTOH Q1 of 2005 was a drop compared to the last two quarters of 2004.

I also think prices may fall, and I hope they do, but they are stubbornly rising right now.

GreenB_2

As the graph shows prices are still increasing albeit slower at 3% but still going up!

There are good fixed interest rates at the moment (sub 4.5%) so its swings and roundabouts really!

If you want a house to live in (not as an investment) then I see no problem buying now. Even inf prices drop they will increase again over the years.

Not sure that renting is cheap and you have no gaurantee that the landlord won't want you to move out in 6 months / 1 years time and then you have to move again (costing time and money) . Constantly moving doesn't do your credit rating any good either - people tend to forget that.

Conrad

GreenB wrote:

As the graph shows prices are still increasing albeit slower at 3% but still going up!

There are good fixed interest rates at the moment (sub 4.5%) so its swings and roundabouts really!

If you want a house to live in (not as an investment) then I see no problem buying now. Even inf prices drop they will increase again over the years.

Not sure that renting is cheap and you have no gaurantee that the landlord won't want you to move out in 6 months / 1 years time and then you have to move again (costing time and money) . Constantly moving doesn't do your credit rating any good either - people tend to forget that.

Almost no one is selling in my patch despite it having one of the best schools in England. Those who have sold have accepted large reductions. One person sold for £750000. The house was worth £900000 18 months ago.

Wait and see what happens over Xmas. You may well find many Xmas bargains due to the lethal cocktail of forced sellers and vastly reduced numbers of buyers and for the first time in years, almost no B2Ls propping up the party.