n boost Posted January 26, 2009 Share Posted January 26, 2009 I am in a similar situation myself and have started looking into shared ownership. Luckily for me i live in birmingham where there are quite a few new builds available and shared ownership options available. Waterloo housing will let me buy % upto the full 100%, so depending on what the bank say's might consider 25% at the moment just to get on the ladder and see how the market works out and buy some more % if prices drop. Either way i feel it is better than renting and if i do go for the 25% option than it is not a very large amount if circumstances change and my morgatge repayments including rent to waterloo for their share work out to what i am currently paying in rent every month but have nothing to show for it! Quote Link to comment Share on other sites More sharing options...
probrox Posted January 26, 2009 Share Posted January 26, 2009 That sounds interesting - I'm hoping a different and independent mortgage adviser tomorrow will give me some more advise. What times your salary did they offer you? I think it works out at 4.5 times our joint salary. A free independant advisor pointed me in their direction. Excuse the naivety, but is that a good deal when MLRs are at 1% (?) The interest rate is terrible due to only having 10% deposit. With 25% deposit you can get 4% fixed rate, if not better. Unfortunately i'm looking to spend around 160k and can't scrape 40k together for the deposit. Quote Link to comment Share on other sites More sharing options...
Supragal Posted January 26, 2009 Share Posted January 26, 2009 Personally I'd wait longer and save more - if you're already on the market then that is one thing as a first time buyer FFS cash in and WAIT until prices are WAY down. Seriously. Or you are literally just throwing money away! Quote Link to comment Share on other sites More sharing options...
Carl_S Posted January 26, 2009 Share Posted January 26, 2009 I bought first house in november. Partly regret it the bills are huge, and my hours at work have been cut, so I need to do some other kind of work till hours are raised again. The house is nice, and is cheaper for me to have it than rent out a flat. A good mortgage advisor got me the right product - so for that I am greatful. Quote Link to comment Share on other sites More sharing options...
plus1 Posted January 26, 2009 Share Posted January 26, 2009 First time buyer, wants to spend £240,000 on a house, mortgage companies lending 4 times joint income plus... Thats one of the things that got the housing market in to this mess in the first place. I see it all the time in my job. New couple, want a new house, has to be a minimum of three bedrooms, on-suite, detached etc etc and a new car on the drive. Companies lending more and more money, people being stretched past there limits all for the sake of "look at us in our nice new house" One quick change in rates and people start to struggle on repayments. When we bought our house we could only get three times the highest earners salary and mortgage rates were at 14%. There are houses out there for around £150,000 that are quite adequate for first time buyers. Start at the lower end of the property ladder and work your way up when you can afford it, instead of jumping in at the top. At least that way if rates do start to go up, which they will in 18 months,if not sooner, you have a cusion to fall back on. Please don't take this personally, it is only meant as advice. I admire that you have managed to save up a great deposit and hope you do find somewhere soon. Its just that I see a lot of this. Our friend has just bought his first house with his partner, new four bed etc, bought an Audi each. She had a second child a year ago and gave up work, now the mortgage company is on their backs for money.They only did it to be "up there with the Jone's" Quote Link to comment Share on other sites More sharing options...
Fifty Posted January 26, 2009 Share Posted January 26, 2009 totally agree... and you hit the nail there.... this is my first house, and had it for 4 years now. I totally agree with it all depends on the persons circumstances but I was also a little peed one someone got upset when I refused a sub 100k offer. some people just expect you to drop a significant amount... I wish I could so I can get out of this hell hole of a country! First hi Jo! long time no see!!! I am on the other side of this dilemma - I have dropped my price 60000 ! and still no buyer! in nine months. Plenty of lookers, and suprisingly noone said it was too much though it is an expensive house (5 beds etc). I would drop another 20000 if I was made that offer. Prob for me is noone seems willing to take on the huge garden - lazy gits lol. best of luck with your hunting. Creative - couldnt agree more ref getting out, where are you going?? Rich Quote Link to comment Share on other sites More sharing options...
michael Posted January 26, 2009 Share Posted January 26, 2009 Prob for me is noone seems willing to take on the huge garden - lazy gits lol. Can you fence off a smaller area next to the house to create a formal garden people would be happier with and then call the rest a "wildlife garden"? Quote Link to comment Share on other sites More sharing options...
Fifty Posted January 26, 2009 Share Posted January 26, 2009 Can you fence off a smaller area next to the house to create a formal garden people would be happier with and then call the rest a "wildlife garden"? good suggestion though it is already that style - personally I think its time to change agents, we have 2 and they are both , lets say , not too energetic lol Will give it another couple of weeks then consider changing. Rich Quote Link to comment Share on other sites More sharing options...
Supragal Posted January 26, 2009 Share Posted January 26, 2009 Prob for me is noone seems willing to take on the huge garden - lazy gits lol. Rich I found a house with a 200ft x 100ft garden - apparently the reason it was still on the market was because no-one wanted the garden! OMG I'd KILL for a garden that size!!! Quote Link to comment Share on other sites More sharing options...
Fifty Posted January 26, 2009 Share Posted January 26, 2009 I found a house with a 200ft x 100ft garden - apparently the reason it was still on the market was because no-one wanted the garden! OMG I'd KILL for a garden that size!!! yes Rosie - its weird because we love it, and although it can be hard work , its a haven of peace and wildlife - makes us wonder what people want. I think problem is really that the right buyer hasnt showed up yet. Rich Quote Link to comment Share on other sites More sharing options...
Supragal Posted January 26, 2009 Share Posted January 26, 2009 Still it gives me hope that if I can ever move up a run that I might find something that no-one else wants because of the main thing I want it for!! Quote Link to comment Share on other sites More sharing options...
jacko Posted January 26, 2009 Share Posted January 26, 2009 Check out Cheltenham and gloucester. I got a mortgage offer last week of 187k with 10% deposit. Interest rate was 6.1% fixed for 5 years. They were also offering 2yrs fixed at 5.69%. I've just got a mortage from Nationwide, good interest rate as well, fixed for 5 years. Stretched it right out over 35 years though, even with a 90k deposit. I will inherit some money before the end of the term, so i thought i would make my monthly payments fairly low so i wasnt stretched every month Quote Link to comment Share on other sites More sharing options...
sarjo Posted January 26, 2009 Author Share Posted January 26, 2009 First time buyer, wants to spend £240,000 on a house, mortgage companies lending 4 times joint income plus... Thats one of the things that got the housing market in to this mess in the first place. I see it all the time in my job. New couple, want a new house, has to be a minimum of three bedrooms, on-suite, detached etc etc and a new car on the drive. Companies lending more and more money, people being stretched past there limits all for the sake of "look at us in our nice new house" One quick change in rates and people start to struggle on repayments. When we bought our house we could only get three times the highest earners salary and mortgage rates were at 14%. There are houses out there for around £150,000 that are quite adequate for first time buyers. Start at the lower end of the property ladder and work your way up when you can afford it, instead of jumping in at the top. At least that way if rates do start to go up, which they will in 18 months,if not sooner, you have a cusion to fall back on. Please don't take this personally, it is only meant as advice. I admire that you have managed to save up a great deposit and hope you do find somewhere soon. Its just that I see a lot of this. Our friend has just bought his first house with his partner, new four bed etc, bought an Audi each. She had a second child a year ago and gave up work, now the mortgage company is on their backs for money.They only did it to be "up there with the Jone's" No offence taken. My salary is just under 40k, my partner's on 12k and we are looking at an affordable mortgage on just my salary as my partner is self employed and we want to be careful. I think you are right about people being lent money beyond their means. There is no suitable property here in devon for 150k for us - we do have some certain requirements like must have min 2 bed plus one room for study, must have garage and off road parking, and garden . . . If I moved back to the midlands I would be laughing!!! Quote Link to comment Share on other sites More sharing options...
sarjo Posted January 26, 2009 Author Share Posted January 26, 2009 First hi Jo! long time no see!!! I am on the other side of this dilemma - I have dropped my price 60000 ! and still no buyer! in nine months. Plenty of lookers, and suprisingly noone said it was too much though it is an expensive house (5 beds etc). I would drop another 20000 if I was made that offer. Prob for me is noone seems willing to take on the huge garden - lazy gits lol. best of luck with your hunting. Creative - couldnt agree more ref getting out, where are you going?? Rich Hi Fifty - definitely too long. Had a difficult couple of years with my dad and a battle with cancer which he finally lost in November, so haven't been around much. Fancy a house swap then? I would love a huge garden, but would have to buy some sheep instead of a lawn mower!! Have you heard anything from Psymon recently?? Quote Link to comment Share on other sites More sharing options...
Pig Posted January 26, 2009 Share Posted January 26, 2009 I had 20K down as a deposit. I hve now changed my plans. Instead of just buying one place with only a 60k mortgage im going to buy 2 places with 2 mortgages of 120k each. Going to wait till spring 2010 for the second place though. Quote Link to comment Share on other sites More sharing options...
Fifty Posted January 26, 2009 Share Posted January 26, 2009 Hi Fifty - definitely too long. Had a difficult couple of years with my dad and a battle with cancer which he finally lost in November, so haven't been around much. Fancy a house swap then? I would love a huge garden, but would have to buy some sheep instead of a lawn mower!! Have you heard anything from Psymon recently?? Oh sorry to hear about your dad. Nah cant swap , you may know I plan to move to Central America! asap. Psymon vanished lol keep in touch babe:d Rich Quote Link to comment Share on other sites More sharing options...
plus1 Posted January 26, 2009 Share Posted January 26, 2009 No offence taken. My salary is just under 40k, my partner's on 12k and we are looking at an affordable mortgage on just my salary as my partner is self employed and we want to be careful. I think you are right about people being lent money beyond their means. There is no suitable property here in devon for 150k for us - we do have some certain requirements like must have min 2 bed plus one room for study, must have garage and off road parking, and garden . . . If I moved back to the midlands I would be laughing!!! Cool, really hope somwhere comes up soon. Quote Link to comment Share on other sites More sharing options...
DJButler Posted January 26, 2009 Share Posted January 26, 2009 I think one of the problems lies in the fact that estate agents want to make a quick easy sale so they convince the seller to go on the market at the lowest price they can, say 20% down on what they were expecting, then along comes the buyer and asks for another 20% reduction. Result one Pi**ed off seller, one Pi**ed off buyer and one etate agent telling us all how bad the market is. I am looking at buying a place in Phoenix AZ, now thats what i call low prices, £70,000 for a three bed with pool and plenty off room for my guns:innocent: Quote Link to comment Share on other sites More sharing options...
Fifty Posted January 26, 2009 Share Posted January 26, 2009 I think one of the problems lies in the fact that estate agents want to make a quick easy sale so they convince the seller to go on the market at the lowest price they can, say 20% down on what they were expecting, then along comes the buyer and asks for another 20% reduction. Result one Pi**ed off seller, one Pi**ed off buyer and one etate agent telling us all how bad the market is. I am looking at buying a place in Phoenix AZ, now thats what i call low prices, £70,000 for a three bed with pool and plenty off room for my guns:innocent: So how will you go on about residency and work in USA then? Agreed property is great there, as it is in CR. Rich Quote Link to comment Share on other sites More sharing options...
extendor Posted January 26, 2009 Share Posted January 26, 2009 I live in the seaside town of Dawlish ....The prices are being held up by the fact the town is relatively small with insufficient housing for the increasing population and because of its popularity. Agreed, I live next town down. Too many people and too few houses keep the prices solid. We have seen a slow down but no great drop in value here. Its the old problem of local salaries do not meet the multiplier required for the mortgage. A good house here will cost about 250K but the average salary is less than 20K. Do the maths. locals can rarely afford to buy the nice houses so they go to incomers - like me!!! However, its not a good thing. My kids are now locals. Guess what they cant afford to buy here either. Big problem. Quote Link to comment Share on other sites More sharing options...
JamieP Posted January 26, 2009 Share Posted January 26, 2009 I had 20K down as a deposit. I hve now changed my plans. Instead of just buying one place with only a 60k mortgage im going to buy 2 places with 2 mortgages of 120k each. Going to wait till spring 2010 for the second place though. Good plan mate. Quote Link to comment Share on other sites More sharing options...
DJButler Posted January 26, 2009 Share Posted January 26, 2009 So how will you go on about residency and work in USA then? Agreed property is great there, as it is in CR. Rich Pm'd Quote Link to comment Share on other sites More sharing options...
Conrad Posted January 26, 2009 Share Posted January 26, 2009 I've not read the thread Sarj but as a builder myslf with poperties to sell I'm fairly up to speed with things. My advice would be to look at properties with no upwards chain. Poperties that are vacant or with no mortgage etc. These properties tend to be somebodies 2nd home or maybe a property left to a relative after a death in the family. As the owner is not reliant on 'X' amount of £££'s to move elsewhere they're more likely to accept a lesser offer. You'll also find the agents selling for them will push for sale too and urge them to accept the offer in order to get a sale. As for the 85% thing then look at other banks. Maybe your mortgage advisor only uses certain banks, the 15% deposit may not apply with other lenders. I've also heard that lenders want bigger deposits on new builds as opposed to older properties. So many people are scared to buy at the moment or are willing to take risks. But the truth is now is the time to buy!! Use the terrible market to your advantage.... Quote Link to comment Share on other sites More sharing options...
sarjo Posted January 26, 2009 Author Share Posted January 26, 2009 I've not read the thread Sarj but as a builder myslf with poperties to sell I'm fairly up to speed with things. My advice would be to look at properties with no upwards chain. Poperties that are vacant or with no mortgage etc. These properties tend to be someones 2nd home or maybe a property left to a relative after a death in the family. As the owner is not reliant on 'X' amount of £££'s to move elsewhere they're more likely to accept a lesser offer. You'll also find the agents selling for them will push for sale too and urge them to accept the offer in order to get a sale. As for the 85% thing then look at other banks. Maybe your mortgage advisor only uses certain banks, the 15% deposit may not apply with other lenders. I've also heard that lenders want bigger deposits on new builds as opposed to older properties. So many people are scared to buy at the moment or are willing to take risks. But the truth is now is the time to buy!! Use the terrible market to your advantage.... Conrad - thanks for the words of encouragement. I have seen another mortgage advisor this evening and hopefully he is going to come back to me with some more options. I am also thinking of asking estate agents to send me details of every property with no upward chain - upto 50k above my borrowing limit in the hope of being able to secure a property at a bargain price. I am not desperate to buy any old property, I am looking to buy my next home and guess I will have to wait for as long as it takes - hopefully before the market picks up again. Quote Link to comment Share on other sites More sharing options...
SteveR Posted January 26, 2009 Share Posted January 26, 2009 But the truth is now is the time to buy!! Quote Link to comment Share on other sites More sharing options...
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