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Moving out - mortgage - help needed
Former Member
Posts: 1,876,323 The Mix Honorary Guru
Ok i work and live in London, im 24 and im finally flying the nest (well actually im slowly gettin pushed) I dont want to move out of my area which is west london \surrey areas.
Ive come to the conclusion that renting is just paying off some fat greedy landlord so want to skip that route and go straight into the serious stuff.
I planning to move out with my best mate of 13 years so were going to need a 2 bedroom house \flat. The only problem being that the average 2 bedroom place around here is 170k +
So what the heck are our chances considering -
applicant A (moi) £20000pa, 6k debts (2k savings)
applicant b £20000pa, 3k debts (4k savings)
Ive recently got a book called first time buyers but its not looking pretty at the moment. I was hoping to get 95-100% mortgage but heard it may be quite expensive on interest rates. Aghh any mortgage buffs out there
(ps i do realise i would probably be better off talking to a mortgage advisor but i thought i would get a general opinion first, oh and no funny comments about my pittance earnings
)
Ive come to the conclusion that renting is just paying off some fat greedy landlord so want to skip that route and go straight into the serious stuff.
I planning to move out with my best mate of 13 years so were going to need a 2 bedroom house \flat. The only problem being that the average 2 bedroom place around here is 170k +
So what the heck are our chances considering -
applicant A (moi) £20000pa, 6k debts (2k savings)
applicant b £20000pa, 3k debts (4k savings)
Ive recently got a book called first time buyers but its not looking pretty at the moment. I was hoping to get 95-100% mortgage but heard it may be quite expensive on interest rates. Aghh any mortgage buffs out there
(ps i do realise i would probably be better off talking to a mortgage advisor but i thought i would get a general opinion first, oh and no funny comments about my pittance earnings
) 0
Comments
Why have you savings and debt? You'd be much better off paying off the debt.
secondly bud, savings were for a deposit, holiday maybe to one day pay off debts. Its nicer than just paying off the debt.
It really seems sad that in these days its almost impossible to move out on your own let alone with a mate. I work in the city in a professional job and still earn rubbish money. I wonder how the government are going to deal with this problem in 5-6 years time with more people needing housing and unemployment up. Recession is comin i tells ya!
Its too risky for the banks, I doubt any of the big lenders would touch them with a barge pole.
Its odd really, the French dont go in for this house buying thing like we do, most people in paris rent, yet we must have our own patch of land.
I think if you think about it bud we all need an investment in our lives. Unfortunetly my mum doesnt associate with her family so she never had the chance to have an inheritence and my mum lives in a council flat so i wont get anything. The whole idea is for you to be sitting on an nest egg either for your retirement or for your kids. Renting to me is just paying someone elses mortgage.
There are plenty of places to buy, that are affordable. But as you don't want to leave Surrey, which is the most expensive place in the country to buy property, you're a bit stuck really.
I don't think you would get a mortgage, and if you do, you will be paying a gigantic interest rate.
Nope.
Banks loan against equity, and against income.
A split mortgage like that would seriously reduce the equity, and seriously increase the risk.
I heard a rumor that Pool in Dorset was actually the most expensive place to buy a house - however I still maintain that belgravia probably tops that.
However its not just that he doesn't want to leave surrey there are hardly any flats to buy in london for under £100K and where they are they are normally either retirement flats or studios - neither of which you could feesably live in as 2 young adults.
Its a small strip by Poole on the ocean, it has the highest average prices of anywhere in the UK, but its quite small.
I've sailed past it (the small strip) and its OK but i cant' really see the attraction with it - there must be more beautiful places to live in the UK - or maybe i always go on cloudy depressing days.....
Equity is basically the stake in the house that you own. If the bank are going to give you a mortgage, they expect the stake (equity) to cover the amount you borrow should you not be able to pay it back. They won't consider giving you the mortgage if your combined equity and income give them no signs of confidence that you could actually pay it back.
Anyhow, back to the mortagage business. Have you considered a shared ownership scheme where you buy part of the house and rent the rest? My friend's just going into this with her boyf - both have irregular jobs so it's hard to prove income etc. OK, you're only buying half the place,. but it's a good start and better than paying all mortagage.
here's some more info for you
It might be worth you looking at some mortgage calculators too:
Guardian one
And finally, Theite's got some good, basic info on buying you first place:
Buying a place
Hope this helps - good luck!
In addition to a pretty hefty mortgage, you then have to pay rent on top. I found that if you could afford a property on shared ownership, then you should also be able to afford to pay the full amount (mortgage + rent) and get a better straight repayment mortgage.
They don't really save you much in the long run, and you have got the downside of not fully owning your property.
Anyway, good luck to you with trying to find a solution.
People can always rent, there are lots of places you can rent in London for not a massive amount, you just cant buy, its not the end of the World or anything.
(I hope I dreamed it, actually)