How to get onto the housing ladder

Third Opinion said:
Lets say 200k property.

at least a 15% deposit = 25k

Stamp duty = 2k

Solicitors fees = 1-2k

Moving in = about 1k (assuming you have everything furniture, kitchen and bedroom)

Upfront bills = 1k(water, council tax installment, gas, electric, phone connection)

200k house = at least 30-33k upfront. That is with a 15% deposit which will leave you with a high mortgage rate.

£500 a month will give you the deposit in 5 years.
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Where did some of these numbers come from?
1K for setting up gas/electric/phone?
Gas n Electric were no up front costs, just had to give a meter reading and set up a DD. Phone was in with BB/Sky, again no upfront cost just a monthly bill. Council Tax I think was £130 upfront then £110 a month. Water again just a monthly bill.

As some of the above have indicated mate the best mortgages come with the larger deposits, which will save you a huge amount. Currently looking at getting out of our mortgage as we pay about £700 a month and less than £100 comes off what we owe :(

20-30% deposit should see you in good stead for a half decent mortgage. Altho there are other options, the last place we rented have a scheme where if you decided to purchase after renting for a year they put the entire rent for that year towards your deposit. Solicitors Fee's will vary hugely depending where you go, think we paid £1400. You will of course need surveys and stuff done for any property you buy, you may need to pay these or they may be bundled with solicitors or Bank Fee's. Also some mortgages do require setup Fee's, completely depends on bank.offer tho.
 
krooton said:
I'm guessing Rose Hill roundabout? It's like being transported to the wild west, everyone is a law unto themselves :D
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Yes, Rose Hill. I was going to Wallington and back every day and that roundabout was just the most unsavoury packet of road biscuit annoyance I think I've ever made the mistake of using.

Lord-Jaffa said:
:confused:
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That [amount] would only get me [a smaller thing] in [an area].

Sometimes it's true and meant to be useful. More often than not it's used to show off, hence the e-peen thing which apparently confused you.
 
Speaking to a friend last night got me thinking about part buy part renting, as he tells me that himself and his girlfriend have half bought a 1 bed on a 20% mortgage in central brighton and are paying around £600 p/m for rent, mortgage and service charge. If they were renting then they would struggle to find a 1 bed flat for that price and they'll have gained something later on, but what would be the downsides to part rent/part buy? Are they harder to sell?
 
$loth said:
Speaking to a friend last night got me thinking about part buy part renting, as he tells me that himself and his girlfriend have half bought a 1 bed on a 20% mortgage in central brighton and are paying around £600 p/m for rent, mortgage and service charge. If they were renting then they would struggle to find a 1 bed flat for that price and they'll have gained something later on, but what would be the downsides to part rent/part buy? Are they harder to sell?
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When I looked in to it, part rent/buy schemes seemed to be a false economy. (At least in London it seemed to be.)

You end up paying your mortgage, interest on mortgage, rent, and service charges.

This is why we opted for the shared equity instead, we bought 75% of the property with deposit and mortgage, the other 25% is owned by the government and developer. The 25% equity loan is interest free for the first 5 years, and we plan to sell before we reach that length of time.
 
Been trying to find decent cheap places to live near Newhaven, but google searches just bring up America :(.

Newhaven doesn't really seem like a nice place to live, but I'm wanting to move closer for less commuting. Rather then make a thread, anyone know any nice places nearby? :D
 
Where are you working and living previously? Saltdean and peacehaven are the closest areas, otherwise there's Eastbourne, Polegate and also Lewes which may be more expensive than the others.
 
[FnG]magnolia;23283582 said:
Yes, Rose Hill. I was going to Wallington and back every day and that roundabout was just the most unsavoury packet of road biscuit annoyance I think I've ever made the mistake of using.



That [amount] would only get me [a smaller thing] in [an area].

Sometimes it's true and meant to be useful. More often than not it's used to show off, hence the e-peen thing which apparently confused you.
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Im not confused at all or trying to extend my epeen, I find house prices in my area to be ridiculous, much like your previous comment.
 
$loth said:
Where are you working and living previously? Saltdean and peacehaven are the closest areas, otherwise there's Eastbourne, Polegate and also Lewes which may be more expensive than the others.
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Currently live at home in Crowborough, so about a 40min drive on clear roads. I start on the 10th and looking to move out to rent as soon as I have enough funds to do so. Maybe I'll just have to use rightmove and do stuff within certain mile radius at the time
 
PapaLazaru said:
Your have to bear in mind that the average age of the first time buyer in the UK is now 37 which says something about the state of the property market.
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That makes me feel incredibly lucky to have been able to buy my house at 23!

got about half the mortgage paid off now and hope to be mortgage free by 30. Any stats on the average age to be mortgage free?
 
PapaLazaru said:
Which is what most people do in Europe anyway. We are slightly obsessed with buying in the UK. Go to Germany for instance and the vast majority rent all their lives.
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Because the laws in renting are better, plus rents are cheaper, here in the UK if you don't own a property the government does not see you as part of the people they want to help. The UK is in for a long term shock, you can't keep rents high wages low something needs to give, upto 1979 we we building over 200k social homes since 1947.

As soon as the Thacher policies kicked 1 year later we were building 20 percent fewer homes per year , up until last few years they were building 250 social homes a year.

You also need to look at the amount of MPs that have some kind of property interest company over 80 percent either own a property investment company or work for one or there relatives have one.

The rise of the benefit culture is a direct effect of government polices that have been a complete failure and so they turn to pumping out benefits to try and fix a simple problem which should be fixed by building social homes, restricting foreign ownership. Until then do not expect for the vast majority to own your home.

I know 2 people that have good degrees but have given up working because of the high rents, when i spoke to them they had said something very similar why should they work and live in share accommodation, that was fine for the 1st few years but later on it wasn't they became sick of the lack of government social house building and now they just do volunteer work and sign on.
 
Kreeeee said:
That makes me feel incredibly lucky to have been able to buy my house at 23!

got about half the mortgage paid off now and hope to be mortgage free by 30. Any stats on the average age to be mortgage free?
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How much was the property, and what was the deposit, if you don't mind saying?
 
Weston COyney is not bad area. Looked at a few houses there myself before buying my place in sneyd green (this house won because its got a huge garage! 33ft by 16ft :D As an idea for price it was £123k for a 3 bed semi in a quiet culdesac)

Got a couple of friends who live in weston coyney too
 
Kreeeee said:
Any stats on the average age to be mortgage free?
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I think that figure may be very surprising. Looking at my limited set of data; my parents didn't pay theirs off until they were early 50s/late 40s (and they're quite well off), my aunt and uncle still haven't paid theirs off and hes over 60! My sister and brother in law have 20 years left on their mortgage and he's 33, however they're likely to do quite well and start overpaying quickly.

Me, i've got just a hair under 50% on my property, but I'm not looking to pay it off quickly; my ISA has a similar interest rate to my mortgage %, as a result, paying it off quickly makes no sense at the moment, would rather have a bit of back up cash 'just in case'
 
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Makes me sad that a mate of mine has just put a deposit down on a 4 bedroom detached new build in my home town in Redcar for £140,000 :(

A house like that where I am in Milton Keynes your looking well into double that at least!

Looks like ill be renting for a long long time!
 
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