Overclockers UK Forums Click here for more details
Free Shipping for Loyal Forum Members - CLICK HERE

Go Back   Overclockers UK Forums > Life > General Discussion

Reply
 
Thread Tools
Old 3rd Dec 2006, 23:19   #1
andy2k
Hitman
 
Joined: Jun 2005
Location: Swindon, UK
Posts: 609
Buying a first home,

Im currently on about 20 thousand a year, is there any schemes out there to buy a house?

I really would rather buy, i only have about 1 thousand pound saved. Is there anything out there which would allow me to buy a small house?

I live in the swindon area, just need to know if there is any way to buy, or would i have to rent? cheers
andy2k is offline   View trust for Reply With Quote
Old 3rd Dec 2006, 23:28   #2
Paul11
Sgarrista
 
Paul11's Avatar
 
Joined: Sep 2003
Location: London
Posts: 9,699
generally you can borrow between 3 - 5 x your salary (depending on different factors)

so that give you a mortgage of about 80-100k

so it depends what you can get in your area for that ????


edit: if you can buy a two bedroom place and rent a room out to help with the mortgage

Paul11 is offline   View trust for Reply With Quote
Old 3rd Dec 2006, 23:36   #3
Dolph
Man of Honour
 
Dolph's Avatar
 
Joined: Oct 2002
Location: Plymouth
Posts: 41,648
I'd be very, very surprised if anyone would lend you anything approaching £100k on that salary (5x multiplier), the figures don't add up. (Abbey do a 5x multiplier but you have to have a household income in excess of £50k to have it).

£20k will give you a takehome somewhere in the region of £1200-1300 a month after tax, and £100k on a mortgage (the £1000 savings will be gone in fees without any problems) will be around £550-600 a month, plus associated insurance policies and all the other expenses (bills, maintaince etc)

Without a second income in the household I'd say you're going to be out of luck buying at the moment. Any interest rate rise is going to be seriously close to crippling.

Dolph is online now   View trust for Reply With Quote
Old 3rd Dec 2006, 23:38   #4
blighter
PermaBanned
 
Joined: Mar 2006
Location: Gravesend, Kent
Posts: 3,274
[IMG]http://ocuk.[COLOR="Yellow"]*[/COLOR][COLOR="Yellow"]*[/COLOR][COLOR="Yellow"]*[/COLOR][COLOR="Yellow"]*[/COLOR][COLOR="Yellow"]*[/COLOR][COLOR="Yellow"]*[/COLOR][COLOR="Yellow"]*[/COLOR][COLOR="Yellow"]*[/COLOR][COLOR="Yellow"]*[/COLOR][COLOR="Yellow"]*[/COLOR][COLOR="Yellow"]*[/COLOR][COLOR="Yellow"]*[/COLOR][COLOR="Yellow"]*[/COLOR]/uploadedimages/box.jpg[/IMG]

thats at most £5 + P&P.... leaves you enough for windows and possibly an extension?
blighter is offline   View trust for Reply With Quote
Old 3rd Dec 2006, 23:39   #5
Paul11
Sgarrista
 
Paul11's Avatar
 
Joined: Sep 2003
Location: London
Posts: 9,699
i was saying up to 5 x but i agree it would be difficult to get that (though not impossible)

Last edited by Paul11; 3rd Dec 2006 at 23:42.
Paul11 is offline   View trust for Reply With Quote
Old 3rd Dec 2006, 23:39   #6
andy2k
Hitman
 
Joined: Jun 2005
Location: Swindon, UK
Posts: 609
I will be given a pay rise in the new year to take my take home up to around #1400, plus a bit of overtime, and my second job i earn about #2500 gross with that.

Would this make anything more possbile?

Are house prices likely to drop at any point in the next 3 years or so?
andy2k is offline   View trust for Reply With Quote
Old 3rd Dec 2006, 23:41   #7
Glaucus
Man of Honour
 
Glaucus's Avatar
 
Joined: Mar 2004
Posts: 69,818
If you have no outgoings, then it would appear you could get a 100k mortgage on 20k. A quick search on moneysupermarket.com returns a fair few results.

Bust is to have a look on moneysupermarket, then go to a bank and talk it though to them.

Glaucus is offline   View trust for Reply With Quote
Old 3rd Dec 2006, 23:41   #8
Paul11
Sgarrista
 
Paul11's Avatar
 
Joined: Sep 2003
Location: London
Posts: 9,699
how much does the kind of property you would want cost ?

Paul11 is offline   View trust for Reply With Quote
Old 3rd Dec 2006, 23:42   #9
Townlea
Wise Guy
 
Joined: Aug 2005
Location: Preston, UK
Posts: 1,144
Usually,

The bigger amount of savings/deposit you have the more money they will lend you.

You have only 1 thousand pound... you wont be looking at a big mortgage am afraid

DS3 || e6600 @ 4ghz || XFX 7800GT || Corsair HX 620w
2GB Crucial Anniversary || Acer 1916w || Antec P160
2x 74GB Raptors (RAID 0) + 570GB Storage || NEC 7170
G5 & Saitek Eclipse || B&W S3 601s || Custom Watercooling
Townlea is offline   View trust for Reply With Quote
Old 3rd Dec 2006, 23:43   #10
Paul11
Sgarrista
 
Paul11's Avatar
 
Joined: Sep 2003
Location: London
Posts: 9,699
there are also 100% mortgages where you dont have to put any money down but you will pay a higher rate

Paul11 is offline   View trust for Reply With Quote
Old 3rd Dec 2006, 23:43   #11
oldbag
Sgarrista
 
oldbag's Avatar
 
Joined: Oct 2003
Posts: 7,744
Quote:
Originally Posted by andy2k
I will be given a pay rise in the new year to take my take home up to around #1400, plus a bit of overtime, and my second job i earn about #2500 gross with that.

Would this make anything more possbile?

Are house prices likely to drop at any point in the next 3 years or so?
Doubt it, if anything, they are likely to keep on rising. You'd have to be looking at probably an interest rate of 8% before house prices start to suffer. You've also got to pursuede the estate agents to not artificially inflate house prices, and the banks for not trying to lend stupid amount * your salary.
oldbag is offline   View trust for Reply With Quote
Old 3rd Dec 2006, 23:46   #12
andy2k
Hitman
 
Joined: Jun 2005
Location: Swindon, UK
Posts: 609
About 120k for the type of thing i want.

Will they depreciate at any future time? Maybe i could rent for 5 years, then buy if there more settled then?
andy2k is offline   View trust for Reply With Quote
Old 3rd Dec 2006, 23:48   #13
oldbag
Sgarrista
 
oldbag's Avatar
 
Joined: Oct 2003
Posts: 7,744
Not sure what the best answer is. With renting you may as well withdrawl the money from the cash machine and burn it.
oldbag is offline   View trust for Reply With Quote
Old 3rd Dec 2006, 23:48   #14
Glaucus
Man of Honour
 
Glaucus's Avatar
 
Joined: Mar 2004
Posts: 69,818
Quote:
Originally Posted by andy2k
About 120k for the type of thing i want.

Will they depreciate at any future time? Maybe i could rent for 5 years, then buy if there more settled then?

I very much doubt it, that's what people said 5 years ago, what a mistake they made.

Just get a fixed rate and you'll be fine what ever happens.

Where x100 thousand houses short, banks are giving bigger and bigger mortgages out, bulgeria and romania and joining in january, house prices wil keep climbing for a while yet.

Glaucus is offline   View trust for Reply With Quote
Old 3rd Dec 2006, 23:50   #15
Pumpkinstew
Mobster
 
Pumpkinstew's Avatar
 
Joined: Jan 2005
Location: Oxford/Bristol/Toaster
Posts: 2,682
There are mortgages where you only pay off the interest being accumulated on the loan and also mortgages where the equity in your parents place can be used as collateral. Truth is a single persons income and a £1000 deposit probably isn't going to get you very far. Remember you'll also have costs for decoration and furnishing and then upkeep on top of the mortgage and bills. It adds up fast believe me

Find yourself a woman. A rich one.
Pumpkinstew is offline   View trust for Reply With Quote
Old 3rd Dec 2006, 23:52   #16
oldbag
Sgarrista
 
oldbag's Avatar
 
Joined: Oct 2003
Posts: 7,744
Quote:
Originally Posted by Pumpkinstew
There are mortgages where you only pay off the interest being accumulated on the loan and also mortgages where the equity in your parents place can be used as collateral. Truth is a single persons income and a £1000 deposit probably isn't going to get you very far. Remember you'll also have costs for decoration and furnishing and then upkeep on top of the mortgage and bills. It adds up fast believe me

Find yourself a woman. A rich one.
Or rich parents, which I swear is the only way young first time buyers appear to get on the ladder these days.
oldbag is offline   View trust for Reply With Quote
Old 4th Dec 2006, 00:07   #17
GarethDW
Mobster
 
Joined: Jun 2006
Location: Swindon
Posts: 2,971
Allen & Harris are currently offering a 50% shared ownership scheme for some brand new flats in Faringdon Road. It's in partnership with Jephson Homes Housing Association (http://www.jephson.org.uk/). You can get a 2-bed flat for £63,000

Otherwise, Ridgeway are doing a similar scheme, with a 2-bed flat in Dovedale (which is near Blunsdon Abbey, I think) for £67,000 - again it's a shared-ownership scheme.

If that's a bit far out, you can get somewhere with Sarsen Housing Association in Priory Vale. They're advertising shared-ownership places for approx £68,750 for a 2-bed flat.

There's others available.... have a look on right move, you'll find 'em easily enough.

If you do decide to look into shared ownership, then this info from one of the housing associations may also be useful to you...

Lenders who have historically offered mortgages on Shared Ownerships Schemes, include:
• Abbey National Plc
• Barclays Bank
• Bradford & Bingley
• Bristol & West
• Halifax Plc
• HSBC
• Nationwide Building Society
• Norwich & Peterborough Building Society
• Portman Building Society
• Woolwich Plc

If, however, you don't want to go down that route, you could buy somewhere in Park North for £74,999. It's a 2-bed flat in a high-rise block. If you're from Swindon, you'll know Park North, and you'll understand why it's so cheap

Failing that, there are plenty of 1-bed places for under £100K - in pretty much all parts of town.

Hope that helps
GarethDW is offline   View trust for Reply With Quote
Old 4th Dec 2006, 00:11   #18
Glaucus
Man of Honour
 
Glaucus's Avatar
 
Joined: Mar 2004
Posts: 69,818
the 50% ownership is a rippppppppp off, it's better just to rent.

YTou buy 50% of the flat and rent the other 50% of the flat, then when you decide to buy the other 50% you have to pay for what ever price it will be at that time.

Glaucus is offline   View trust for Reply With Quote
Old 4th Dec 2006, 00:16   #19
GarethDW
Mobster
 
Joined: Jun 2006
Location: Swindon
Posts: 2,971
Quote:
Originally Posted by AcidHell2
the 50% ownership is a rippppppppp off, it's better just to rent.

YTou buy 50% of the flat and rent the other 50% of the flat, then when you decide to buy the other 50% you have to pay for what ever price it will be at that time.
True, it's not a fantastic way to get on the property ladder, but it does offer a chance... you gain 50% of the increase of the property. Compared to renting where you're simply paying off someone else's mortgage with sweet FA to show at the end of it.

Course, the best way is to own a property yourself, which is what I did, but the OP was asking specifically about purchase schemes, hence my post
GarethDW is offline   View trust for Reply With Quote
Old 4th Dec 2006, 00:19   #20
Glaucus
Man of Honour
 
Glaucus's Avatar
 
Joined: Mar 2004
Posts: 69,818
there are some schemes that will give you 10% deposit again these are new builds and you can pay that back interest free over the next 10years however you like.

Best thing is to have a look at mortgages and keep you eye out for new build flats.

Glaucus is offline   View trust for Reply With Quote
Old 4th Dec 2006, 00:22   #21
GarethDW
Mobster
 
Joined: Jun 2006
Location: Swindon
Posts: 2,971
Yeah, completely agree with you. Those schemes are definitely preferrential to 50% ownership schemes. The trouble is, though, that in Swindon the newer properties go for in excess of his budget... areas like Priory Vale are out of his league, unfortunately, with only a £20K salary & £1K deposit. With that kinda money, he's gonna be looking at older properties, where you can't get such deals


edit: andy2k, if you're not worried about status symbols, how's about this nice trailer-park in Latton? http://www.rightmove.co.uk/viewdetai...a_n=8&tr_t=buy
GarethDW is offline   View trust for Reply With Quote
Old 4th Dec 2006, 00:26   #22
Glaucus
Man of Honour
 
Glaucus's Avatar
 
Joined: Mar 2004
Posts: 69,818
Quote:
Originally Posted by GarethDW


edit: andy2k, if you're not worried about status symbols, how's about this nice trailer-park in Latton? http://www.rightmove.co.uk/viewdetai...a_n=8&tr_t=buy
http://property.thisisbristol.co.uk/...t=1&max=120000

eitehr you live in a less desirable area for a year or two, start paying you mortgage and wait for a few pay increase before moving some where better.
Or you can save like you have never saved before, someone at work has managed to save £30k in 3 years and where on £16k basic. By living with his parents, doing every piece of overtime and not spending anything.

Last edited by Glaucus; 4th Dec 2006 at 00:32.
Glaucus is offline   View trust for Reply With Quote
Old 4th Dec 2006, 00:28   #23
oldbag
Sgarrista
 
oldbag's Avatar
 
Joined: Oct 2003
Posts: 7,744
They need to get that 30k into property fast as they will never make as much just leaving it in the bank.
oldbag is offline   View trust for Reply With Quote
Old 4th Dec 2006, 00:31   #24
Glaucus
Man of Honour
 
Glaucus's Avatar
 
Joined: Mar 2004
Posts: 69,818
Quote:
Originally Posted by Triad2000
They need to get that 30k into property fast as they will never make as much just leaving it in the bank.

he's looking at the moment. But it means he can get a 140k mortgage on are salary. Although he doesn't want to get more than 120k

Glaucus is offline   View trust for Reply With Quote
Old 4th Dec 2006, 00:37   #25
Conanius
Capodecina
 
Conanius's Avatar
 
Joined: Oct 2002
Posts: 11,986
Quote:
Originally Posted by Dolph
I'd be very, very surprised if anyone would lend you anything approaching £100k on that salary (5x multiplier), the figures don't add up. (Abbey do a 5x multiplier but you have to have a household income in excess of £50k to have it).

£20k will give you a takehome somewhere in the region of £1200-1300 a month after tax, and £100k on a mortgage (the £1000 savings will be gone in fees without any problems) will be around £550-600 a month, plus associated insurance policies and all the other expenses (bills, maintaince etc)

Without a second income in the household I'd say you're going to be out of luck buying at the moment. Any interest rate rise is going to be seriously close to crippling.
Dolph - If he's near london, people offer scary multiplyers, I was told that on my salary that ive just been offered that id easily get over 200k, trust me, I WISH it was 3x, in reality, thats nearer 6x my salary.. which in honesty is total insanity.... hence me taking the option of a 2bed house in swindon for 120k ish, and a 1 hour 30 door to door commute, much better imo...
Conanius is offline   View trust for Reply With Quote
Old 4th Dec 2006, 00:41   #26
Morba
Caporegime
 
Joined: Mar 2003
Location: Krispy Kreme drive thru
Posts: 28,182
Quote:
Originally Posted by Triad2000
Not sure what the best answer is. With renting you may as well withdrawl the money from the cash machine and burn it.
rubbish, if you get a nice place for less that you were planning on spending on a mortgage (+ other costs) for a short period then you shouldnt be too worried.
Renting for a long period (over 2 years imo) is when it starts to be silly, but then, a place to buy where you are renting may well be well out of your price range, except for crappy houses in crappy areas.


Founding member of the OcUK 19" Club
Morba is offline   View trust for Reply With Quote
Old 4th Dec 2006, 00:43   #27
GarethDW
Mobster
 
Joined: Jun 2006
Location: Swindon
Posts: 2,971
Plus, the £1K he's got saved-up isn't going to be enough to pay for the legal fees, surveyor's charges, etc... so those are gonna have to be included in the mortgage.

Places like Northern Rock are good for lending over 100% of the purchase price - I believe they offered us up to 125% when I was looking 3 years ago. That way, you can factor in the charges to your monthly repayments. The only downside is that you'll be tied to that provider for 3 or possibly 5 years, with a hefty redemption fee if you want to switch to a better deal before the time's up.
GarethDW is offline   View trust for Reply With Quote
Old 4th Dec 2006, 00:45   #28
Conanius
Capodecina
 
Conanius's Avatar
 
Joined: Oct 2002
Posts: 11,986
Quote:
Originally Posted by Morba
rubbish, if you get a nice place for less that you were planning on spending on a mortgage (+ other costs) for a short period then you shouldnt be too worried.
Renting for a long period (over 2 years imo) is when it starts to be silly, but then, a place to buy where you are renting may well be well out of your price range, except for crappy houses in crappy areas.
I guess it depends on the situ... in my short term situ for example

Im currently 'renting' in chelsea in london, 600 pcm, for a 1 bed apartment, which is also for sale, 395k....

now, I'd never spend 400k on a small place like this right next to a main road back in cheltenham, and christ, id never pay 600 quid a week for the privledge. however, in this short term situ (3 months) there was no way Its worth considering buying. (I put 'renting' as I am not actually picking up the tab)

However, say it had been a year, id of considered buying somewhere just because people seem to be making disgusting returns even over a year. one bloke in the office just sold his 2 bed house in ely, cambridgeshire for 20k more than he paid last year. absolute insanity.
Conanius is offline   View trust for Reply With Quote
Old 4th Dec 2006, 00:50   #29
Geoff
Hitman
 
Joined: Sep 2006
Posts: 528
Quote:
Originally Posted by andy2k
Are house prices likely to drop at any point in the next 3 years or so?
The £64 billion question (or several £billion, at least).

Anyone proclaiming to know the answer to that question with any certainty is an idiot or a liar.
Geoff is offline   View trust for Reply With Quote
Old 4th Dec 2006, 00:53   #30
Morba
Caporegime
 
Joined: Mar 2003
Location: Krispy Kreme drive thru
Posts: 28,182
Quote:
Originally Posted by Conanius
I guess it depends on the situ... in my short term situ for example

Im currently 'renting' in chelsea in london, 600 pcm, for a 1 bed apartment, which is also for sale, 395k....

now, I'd never spend 400k on a small place like this right next to a main road back in cheltenham, and christ, id never pay 600 quid a week for the privledge. however, in this short term situ (3 months) there was no way Its worth considering buying. (I put 'renting' as I am not actually picking up the tab)

However, say it had been a year, id of considered buying somewhere just because people seem to be making disgusting returns even over a year. one bloke in the office just sold his 2 bed house in ely, cambridgeshire for 20k more than he paid last year. absolute insanity.
very true, it annoys me to hell to be paying £1k a month for this place, especially as it was valued last weekend only at £220k (which amazed me, i told the valuer if the owner wants to sell then see me first!), but its one of those things that has to be done for now.
If i could assure myself that I could manage a £250k mortgage, then i would just back on the property ladder. Its more a case of me not wanting to live in a crap area and also not wanting less than a 3 bed (2 beds give nowhere near enough floorspace for a growing family!).


Founding member of the OcUK 19" Club
Morba is offline   View trust for Reply With Quote
Reply

Thread Tools

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Forum Jump


All times are GMT. The time now is 21:14.


Powered by vBulletin®
Copyright ©2000 - 2016, Jelsoft Enterprises Ltd.
© Overclockers UK (Ocuk Ltd)