Please help,wanting to buy...

red_riding_hood

Have been reading the boards for ages but this is the first time I have posted,so will try not to ramble too much

I am currently renting (rent £550 pcm).I would like to buy,I have 3 children and want to settle. Current house prices in the area are 120,000 upwards for a 3 bedroomed house.
My bf works full-time earning approx £22,000 and I work part-time earning £3000. We could manage to raise around £5000 deposit and we have a £10,000 loan (pay £230 a month) no other debts.

Are we being unrealistic in wanting to buy our own home?

The landlord of the property is selling up next year,so this would mean we have to move again,and we would be lucky to rent again for under £650 pcm.

Any advice,help gratefully recieved

red_riding_hood

Can nobody offer any advice?

Have I posted on right forum?

Cheers

herbiesjp

Have either of you graduated from university?

Are either of you classed as a professional i.e. doctor etc.

Do you have any extra funds for a deposit?

Is there a family member that can act as a guarantor?


Only having 5k to put down against 120k means that the rates will be high - over 25 years on a repayment basis this would mean mortgage payments of around £733 (and that is if the mortgage is agreed)

I would think that after taking everything into account, affordability will be very very tight for you.

I know it is probably not what you want to hear, but I would suggest looking at saving up more of a deposit, maybe look at different areas, or different types of properties

The last thing anybody would want to do is take on a huge commitment like a mortgage only to find they cannot afford it.

Woby_Tide

agree with the above not looking too good, your existing loan pretty much cancels out your wage for the equation so on your boyfriends salary would need a multiple of over 5 times to get the required amount(even Nationwide on affordability rather than multiples suggests a limit of £75k according to it's calculator). Also you say how you'll be unlikely to rent at less than £650 as though this may cause you problems, the mortgage payments are going to be at least around that mark if not higher still(plus any associated insurances you may take out). Unless you can find a cheaper area nearby or where you can work it doesn't oevrly look feasible(or advisable)