can we get onto the property ladder!!

ethansmummy2004

hiya all
my and my partner are currently renting a 2 bed house but due to having another baby we really need a 3 bed house! rather than throwing our money away we have started thinking about getting a morgage.
have a few probs tho!! firstly neither of our credit ratings are very good, and my parter only earns 21,000 per year and i earn £5,000 so not great considering the cheapest 3 bed here is around 160,000.
my partners parents are trying to help they can put down a 30,000 deposit for us, and if need be be named on our morgage(for crredit purposes!)/ or take the morgage out for us.
also because my partners is in a fairly new job and i have a one year old at home so can only work part time at the moment, i was thinking about getting maybe a 3 year interest only (if we could!) so that in that time my partners wages WOULD go up and my youngest would be at nusery/school so i could work more and earn more money (i know people will say you cant rely on my partners wages increasing but they will)
and obviously it would keep the monthly payments slighty lower for now.
saying all this tho i have no idea about morgages so could be looking rather silly and could have it all wrong!
is any of this possible? or should we just give up and accept its not going to happen, well not in the near future anyway?
we are still young 24 and 26 so could take on a long morgage?
any advice appreciated
thanks

UK007BullDog

You are pretty new here so I suggest you read martins guide, read up on mortgages on the FSA.gov.uk website and also go through the forums here as you are not the first to ask questions like this.

There are costs involved in buying. You need at least 25% deposit maybe even more depending on your credit rating.

Mortgage fees, solicitor fees, maybe even broker fees, stampduty tax for the Government (to bail out the banks (sorry could not help myself)).

What kind of rent are you paying at this time?

Interest only mortgage could be on £160K is monthly: £933.33
I went on a 7% rate as you said your credit is not perfect.

ethansmummy2004

well as is said we have 30,000 for deposit and fees ect.. but thats only a little chunk i know!
its near impossible to get started, so frustrating as we are prob just paying someones mortgage now!
our rent is only 600 per month i thought if we got the house for say £155k and put 25k straight down, then a 3 year interest only the monthly amount would only be around £700? which we could manage.
im prob wrong tho!
either we could do that or my fil said he could take out the mortgage for us so the house would be his really (with us paying the morgage) but ours for the future.

ethansmummy2004

im just wondering if thats possible or we are wasting our time. as i said this is all very new to us, and very confusing! lol

UK007BullDog

FIL could do that but it also has implications for him.

You are renting but it is not dead money. You are getting a roof over your head.

Once you buy you are responsible for any repairs and upkeep. Most people get a shock as they are not used to it.

Personally i would wait a little more, save up, clean up your credit record as best as possible.

For a 25% deposit on a £160,000 property, you need at least £40,000 deposit and then comes all the other fees on top. So really looking for £45,000 to £48,000 savings.

UK007BullDog

You and your FIL should together see a broker with your respective payslips & P60's in hand to get accurate figures and advice on what would be best for you to do.

sarkin

Stay in rented for another 6 months to a year, you will be able to get 3 bed propertys cheaper.

therealdelboy

sarkin wrote: »

Stay in rented for another 6 months to a year, you will be able to get 3 bed propertys cheaper.

Good man sarkin ! Mystic Meg has a rival

Anyone who says they can predict house prices is a fool.

Even the so called experts are divided over future movements.

Assetz finance is predicting house prices to rise again by the end of the year:
http://www.ifaonline.co.uk/public/showPage.html?page=ifa2006_articleimport&tempPageName=790089

drrobert

The Property Ladder 2008:

Commonsensesearcher

therealdelboy wrote: »

Good man sarkin ! Mystic Meg has a rival

Anyone who says they can predict house prices is a fool.

Even the so called experts are divided over future movements.

Assetz finance is predicting house prices to rise again by the end of the year:
http://www.ifaonline.co.uk/public/showPage.html?page=ifa2006_articleimport&tempPageName=790089

That guy from Assetz is a complete and utter clown - his press releases sound ever more desperate and it is partly because of lunatics like this and their rediculous BTL speculation and market ramping that we have this crazy house price bubble.

But we all know what happens to bubbles...

therealdelboy

As I say - it is almost impossible to call the market. As you say, only a clown would try

Just have a look at Capital Economics - they've been predicting a crash for many years, and it still aint happened.