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Buying a first home,

Discussion in 'General Discussion' started by andy2k, Dec 3, 2006.

  1. andy2k

    Hitman

    Joined: Jun 15, 2005

    Posts: 610

    Location: Swindon, UK

    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
     
  2. Paul11

    Sgarrista

    Joined: Sep 28, 2003

    Posts: 9,962

    Location: London

    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
     
  3. Dolph

    Man of Honour

    Joined: Oct 17, 2002

    Posts: 42,731

    Location: Plymouth

    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.
     
  4. blighter

    PermaBanned

    Joined: Mar 31, 2006

    Posts: 3,274

    Location: Gravesend, Kent

    [​IMG]

    thats at most £5 + P&P.... leaves you enough for windows and possibly an extension?
     
  5. Paul11

    Sgarrista

    Joined: Sep 28, 2003

    Posts: 9,962

    Location: London

    i was saying up to 5 x but i agree it would be difficult to get that (though not impossible)
     
    Last edited: Dec 3, 2006
  6. andy2k

    Hitman

    Joined: Jun 15, 2005

    Posts: 610

    Location: Swindon, UK

    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?
     
  7. Glaucus

    Man of Honour

    Joined: Mar 11, 2004

    Posts: 75,015

    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.
     
  8. Paul11

    Sgarrista

    Joined: Sep 28, 2003

    Posts: 9,962

    Location: London

    how much does the kind of property you would want cost ?
     
  9. Townlea

    Wise Guy

    Joined: Aug 6, 2005

    Posts: 1,142

    Location: Preston, UK

    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
     
  10. Paul11

    Sgarrista

    Joined: Sep 28, 2003

    Posts: 9,962

    Location: London

    there are also 100% mortgages where you dont have to put any money down but you will pay a higher rate
     
  11. oldbag

    Sgarrista

    Joined: Oct 14, 2003

    Posts: 7,843

    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.
     
  12. andy2k

    Hitman

    Joined: Jun 15, 2005

    Posts: 610

    Location: Swindon, UK

    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?
     
  13. oldbag

    Sgarrista

    Joined: Oct 14, 2003

    Posts: 7,843

    Not sure what the best answer is. With renting you may as well withdrawl the money from the cash machine and burn it.
     
  14. Glaucus

    Man of Honour

    Joined: Mar 11, 2004

    Posts: 75,015


    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.
     
  15. Pumpkinstew

    Mobster

    Joined: Jan 19, 2005

    Posts: 2,721

    Location: Oxford/Bristol

    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. ;)
     
  16. oldbag

    Sgarrista

    Joined: Oct 14, 2003

    Posts: 7,843

    Or rich parents, which I swear is the only way young first time buyers appear to get on the ladder these days.
     
  17. GarethDW

    Mobster

    Joined: Jun 22, 2006

    Posts: 2,971

    Location: Swindon

    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 :)
     
  18. Glaucus

    Man of Honour

    Joined: Mar 11, 2004

    Posts: 75,015

    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.
     
  19. GarethDW

    Mobster

    Joined: Jun 22, 2006

    Posts: 2,971

    Location: Swindon

    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 ;)
     
  20. Glaucus

    Man of Honour

    Joined: Mar 11, 2004

    Posts: 75,015

    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.
     


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