jiffthejiffmanjaffa

iTrader: (10)

I appreciate that all circumstance are different, but from where I'm sitting theres bugger all help for first time buyers.

Case in point, I've recent started looking at buying a new house. I went to the bank today and was told that for any mortgage I would need at least 25%deposit, so even for a sh*tty hole for £100k I'd need at least £25K, which funnily enought I don't have. More to the point I wouldn't want to live in an area where houses are that cheap so in fact I'd realistically need more like £50k.

Knocking that idea on the head, as it would take me the best part of 10 years to save that sort of money. I decided to look into the share equity schemes.

I get myself accepted on the OwnHome scheme, only to have the funding pulled by Mr BROWN on the day my mortgage was approved. Typcial so I can't buy on the open market in anyway.

So with no open market scemes availlble I was forced to look into share equity schemes on new houses. Now I hate new house estates the houses are all too small, you're crammed into a tiny place and everywhere looks the same. So now I feel as thought I being forced to live in a house I don't want to live in, in an area I don't want to live in. Great start.

Anyway, liking it and lumping it I went along to look at the 5 new estates and two of them weren't all that bad although I could only chose from two and they wouldn't be ready until Feb 2010.

This is the gem, I would need to raise 70% as a mortgage and the scheme would provide the rest as loan. Thing is the houses are all around £230-240k meaning I'd need a mortgage of at least £170k, and guess what I can only raise a mortgage of £160k (Which I think would be streching me to the max anyway). So I'd need to raise an additional £10k for a deposit which I don't have plus as its over the stamp duty limit I'd need around £2500 plus legal fees.

In short I'm screwed. I thought I was earning good money at £36k a year. It seems you either need to be earning mega bucks to buy a house or be lucky enough to have a massive deposit.

I'm pissed off, angry and stressed to the max.

Does anyone know of any open market scehems in the Essex Area other than MyChoice Home Buy or OwnHome both of which have had their funding pulled by Mr BROWN. D*CKHEAD!!!!!!!!!!!!!!!

fatscoobfella1

iTrader: (1)

Its one of them aint it really..

At 36k a year you should have been able to save up a good deposit..

Plus there are many people who live in houses/area's that they dont paticularly want too.Its about getting your foot on the ladder,then in a few years passing it on when your in a better position to move to the house/area's you want..

You do seem pi$$ed off,but the situation is the same for everyone,and has been for years..

Perhaps you should lower your sights and become more realistic in what you can afford.

jiffthejiffmanjaffa

iTrader: (10)

I'm sort of stuck, as I have two children so I need a 3 bed and my sights aren't set high. I'm happy to buy a really run down place and do it up, but there just aren't around for less than £100k and saving up £25k plus on m salary taking into account outgoings for rent etc means it would take the best part of 5years.

mamoon2

If your on 36k a year then you should be looking at house around the £126k mark. Any more and you are living above your means. So looking at 200k houses is pointless.

I can understand your position but like has been said above its the same for everyone. Why not just rent until you are in a better position. I.e job / salary. As long as you have a decent roof over your head, does it really matter?

RJM25R

iTrader: (1)

No offence intended, but how come you haven't saved a deposit if you're on £36k a year?

Luminous

iTrader: (3)

Not being able to buy a house on 36k is crackers. That is more than the national average salary, so getting somewhere reasonable should not be too much of an issue. The sad fact is that I don't see a solution

Henrik

iTrader: (5)

I would expect it has to do with having two kids

Henrik

iTrader: (5)

jiffthejiffmanjaffa, take a chill pill and relax.

I'm renting at the moment and I'm just about to sign up for another 12 months - buying at the moment is a mugs game. Even an interest only mortgage on the place I'm renting would cost way more than my rent, and that's *if* i put in 25% of the cost as a deposit.

Things are very tough for FTB's at the moment - 25% deposit is huge when you think about it, even on a good wage it takes a long, long time to save up the required amount. It will, of course, change, but it's going to take time.

Renting is not bad at all, when you think about it. It's cheaper, and you don't have to pay for broken boilers, sorting out dodgy wiring, fixing bathroom fans (x2) - all of which my landlord has kindly paid for over the last two years.

EddScott

This is a big plus. Our boiler is a back boiler and as and when it finally fails its a good £2K to change to combi.

I also wouldn't start now if you don't have to. The news tonight had some bloke saying its now or never for him and the BBC implying that the housing market is back on track to make all those daily mail readers happy. Its bollox - if lending and financing gets too used to 0.5% interest rates you wait until 0.5% gets to 4% and all those 2.5% trackers are now 6.5% and don't think for a moment that self assesment is dead and buried. Our combined income is the same as yours and I'm quite sure I could get a £160K mortgage easily.

We were very lucky. We paid £99 for our house and had the first 5% paid for so we only needed a 95% mortgage on £48K (not bad for a 3 bed semi in 2001) and no its not a **** hole

Mitchy260

Why dont you do the obvious and type 90% mortgage into google

Where has this 25% stuff come from? Perhaps for the more competitive rates yes, but there are quite a few 90% products out there that are sub 6.5%

C&G were doing upto 4.8x lending multiples last time i looked, that would give you borrowing power of around £170k with 10% deposit meaning you'd be able to buy upto around £190k or so.

DYK

Buy a 30ft long Caravan instead.

SunnySideUp

£36k a year and no savings? Odd ....

There are sharedownership secondhand houses for sale .... one of those?

And, as has been said above, 90% Mortgages are available.

Do your parents have anything to assist?

fatherpierre

Rent, as I'm doing.

Currently half the cost of buying, so you can rent a palace as opposed to a slave box. Sit, wait, be patient and watch what will happen.

You'll be able to afford somewhere in the next 2 years once the UK fake system realignes once NL are thrown out.

GMballistic

iTrader: (1)

Bonker's at the moment I'd agree Jiffthejiffmanjaffa ....could be worse though, you could be living with your parents, been made redundant & burning through your savings whilst looking for a job

MikeCardiff

iTrader: (2)

To be honest, 36K a year isnt enough to buy much of a house anymore - to stay within a reasonable budget, you would would be looking at around £150K total if you have a decent deposit, and in lots of places this is flat money, or really small starter homes with 1 or 2 tiny bedrooms.

To buy a decent house without stretching in most areas, you really need two incomes of around £50K total, for a single buyer anything is going to be a stretch.

There are 90% mortgages out there, but the rates are much higher than the 75% ones, so you'll be getting doubly screwed as your monthly payments will be a lot more, and the amount of interest you pay over the life of the mortgage will be more.

Sensibly, you need to be looking at saving every penny you can to build up a bit of a deposit, which should be possible on £36K a year if you cut back.

And why the rush to buy anyway ? realistically houses arent going to go up much in price in the next few years if at all, and if you wait a few years to buy, over the long term you will end up with a better deal and saving money.

I bought my first house at 32, which traditionally would be quite late, but the advantage was that by that age I was earning enough to comfortably afford a nice large detached house in a good area, that would have been 3 or 4 moves up the property ladder if I had started with a small flat in my early 20's and worked my way up.

So generally, I'm in about the same position as if I had bought 10 years earlier.

Jerome

I know couples who are on double £36k in earnings who have more or less given up the idea of ever owning their own home.

This is because they will not be able to save up the 25% deposit (of still grossly over inflated house prices in the South East) before they have kids. Once they have got kids they reckon it will be impossible to save enough.

It's a ridiculous situation that people on 3 times the national wage have given up on the idea that they will ever buy their own house.

kingofturds

iTrader: (1)

I've put the whole idea on the backburner for a while, anything half decent around here will set you back £220k and my price range will just about buy a 1 bedroom bedsit for £120k.

MattW

There has to be a shift to the continental mentallity of renting. In the UK it seems to have a stigma attached but IMO that has to change as the OP's case points out.

Clarebabes

I do feel sorry for people trying to buy houses now, it's not easy. However, a couple I know recently bought a terraced, 3 bed house in a not so brilliant area of Northampton for £80K, so there are places out there to be had. I think their respective parents helped with deposit, so they've done OK. Is there anyone who can help you?

Also, you are looking at quite an expensive area of the country, I don't suppose reloaction is an option to you? Are the kids with you permanently, or just weekends?

StickyMicky

Me and the missus have done the same

She is a teacher so the wage is not to bad (for a woman ) and i usually do ok when we are not in a recession but we have figured that trying to get on the property ladder at the moment is complete madness.

We actually discussed this last night, as a few years back i was looking into buying the apartment next to mine, she was not up for it at the time, "wahhh wahhh, if we split up then i have been paying for nothing"

FFS i have been lumped with her for about a million years anyway, we aint bloody splitting up she now thinks we should have hopped onto the ladder back then, and at least now, we would have had something in return, and it could have been used to upgrade in the future to a "proper" house.

Feckin wimminz think they know it bloody all, in reality they know **** all

jiffthejiffmanjaffa

iTrader: (10)

Being the single bread winner for a family of three is the main reason I have no savings. I have managed to scrap together £5k but thats barely enought to cover the solicitor fees and stamp duty.

I thought Stamp duty didn't come in until £250k, oh no that at 3% between that and over £175k its 1%. So thats another lump you've got to have as they no longer allow you to pay that off in stages it must be paid in full before you complete.

So for a reasonable £150k house I'd need £37.5k plus approx £3k for legal fees and search around the £40k. I'm 28 worked all my life, supporting my family doing all the things you should do, who on earth could save that amount of money?? Unless of course you have windfalls or are left money??? Not possible IMHO.

As for the 90% mortgage yes they are out there and a 10% deposit is far more acheiveable, but as someone else rightly said the interest rates jump up 1.5%plus, making generally month to month living extremely tight, and when interest rates go up again, and they will, it would be impossible to pay and houses will be repossed and the cycle starts again. WALOS!!!!

kingofturds

iTrader: (1)

Wait until interest rates are at 12% the $hit will really hit the fan then

Mitchy260

5yr Fixed rate mortgage would sort that 1 out so you wouldn't need to worry about IR rises

I dont think you should rule it out. Anything under 7% is always going to be a decent rate.

FlightMan

Edited for accuracy.

SunnySideUp

£150k house attracts ZERO Stamp Duty ... the purchase costs of a £150k house would be less than £1000.

Which means you need to find £151k.

10% Deposit is £15k - you have £5k now anyway so, £10k needed - beg, borrow or steal that.

Borrow £140k and you are in ... sorted.

Buying your 1st house has NEVER been easy - EVER! It is always tough yet people always seem to do it.

The market has a natural price point, if you can afford it (and it seems you can) buy - if you cannot afford it then Rent and buy someone elses house for them. It's how it has always been.

Leslie

It is quite true that your first house always seems unaffordable. Its amazing how you can get by as long as you don't completely over reach your situation. Its a matter of biting the bullet!

Les

Clarebabes

I dunno, my first house was very affordable, £41K asking price, 5% deposit paid by my mum and dad, mortgage was interest only... Think payments were just about £250 a month if that.

Multiply that by 4, and I would have been stuffed!

kingofturds

iTrader: (1)

My Brothers first house was £35k with a 10% deposit which was exactly 3.5 times his annual wage at the time

dunx

iTrader: (3)

Prices are stupid, when my Mother died a few years ago the Estate Agents said £74K, bit more if you spruce it up, so I borrowed £10K and did the DG, gas CH, re-wire, new kitchen & bathroom, got £114,000 ! Three bed terrace outside Hull.

They kept on rising till NL did it all again.... 70's kid me !

I'm now waiting to see just how bad it gets when the banks are "allowed" to chisel back all the cash they have "lost" elsewhere, from it's "trapped" customers, I expect interest rates to soar within the next year.

Once that forces a price collapse I'll jump back in to the market and this time I'll settle in for the duration.

dunx

GMballistic

iTrader: (1)

I just love the way some people are responding to this with; "can't Mumsy & Daddy help you out?"
For alot of people they don't have that advatage....my Mrs has often lent her parent's money because there short or something un-expected happen's (both have jobs & there own home). This is what some people don't understand that some first time buyer's are having to raise all the capital themselves whilst still trying to support themselves, children, buy food, pay car insurance etc etc. I can't see myself being able to own my home unfortunately for a long time still and I'm 29!
Atleast I have my Scooby to chear me up though