RobSheffield Posted July 5, 2009 Share Posted July 5, 2009 I really want to move out to my own house/flat, but i dont want to rent. Its hopefully going to be in the next 14 months (before im 30 ) Im not sure what type of mortgage would suit me best. Ideally id like something where the payments are low, and not such a huge deposit is required. (around 5k maybe, with monthly payments sub £600) I know that will stretch otu for years, but the plan would be to increase monthly payments in time as and when pay rises/better jobs come along. I have also seen a scheme where you only mortgage a certain amount of the house, and then top up as and when which sounds ideal, but could have issues! Is it called staircasing? Alternatively some kind of incentive/paid deposit from the house builder on a new build flat may be wise. Help! Quote Link to comment Share on other sites More sharing options...
glanov Posted July 5, 2009 Share Posted July 5, 2009 what about co ownership mate? i dont know much about morgages as im 21 so dont need to just yet lol but you dont need a deposit and montly payments are low but i think you can buy out the other party after couple off years!! but ill leave that to someone who knows abit more than me!! Quote Link to comment Share on other sites More sharing options...
erol_h Posted July 5, 2009 Share Posted July 5, 2009 can you get a mortgage with a low deposit im hopefully going to buy a house next year and for me to get a decent interest rate they want 20 - 25% deposit other the rate is stupidly high. Quote Link to comment Share on other sites More sharing options...
Al Massey Posted July 5, 2009 Share Posted July 5, 2009 Ive been looking into this for a while and have had a few mortgage and financial advisors round to disscus the possibilities. Its a good time to buy right now but you need a huge deposit depending on the price of the house/flat as banks are not lending for 90% mortgages. The government are doing good schemes for first time buyers but i dont fall in this catorgory. Also there are really good schemes for key workers ie nurses, emergency services and in some areas forces personell are included. But you can qualify for the government scheme where they and yourself buy the property, The % of ownership is upto how much you can afford to pay. but you also pay rent on the % owned by the government/company doing the deal And over time you can pay them off bit by bit or in lump sums. There is alot of information on the internet about some of these schemes But your best bet is to get a mortgage/financail advisor to come around and go through your options. Quote Link to comment Share on other sites More sharing options...
RobSheffield Posted July 5, 2009 Author Share Posted July 5, 2009 The government are doing good schemes for first time buyers but i dont fall in this catorgory. What are the criteria, or is it the 'essential personnel' thing? Quote Link to comment Share on other sites More sharing options...
Al Massey Posted July 5, 2009 Share Posted July 5, 2009 What are the criteria, or is it the 'essential personnel' thing? As long as you havnt had property in your name then you can apply. I used to own a house a few years ago but sold it due to posting in the army, wish i never sold it now:( There is actually quite a few schemes for first time buyers. This is the website i was told to look into by my advisor http://www.direct.gov.uk/en/HomeAndCommunity/BuyingAndSellingYourHome/HomeBuyingSchemes/index.htm Its from the government and has most of the information needed. As i said theere are plenty of schemes so its just upto you to find the best that suits. Im still trying to go with a key worker scheme but its hard at the moment as not many councils want to give us soldiers houses. But the government are willing to put me on the scheme and pay for most of it, i just need to find out where i want to move to and hopefully have the local council say yes Edit there is also lots of information on internet from local councils and companies that do these type of schemes. Quote Link to comment Share on other sites More sharing options...
RobSheffield Posted July 5, 2009 Author Share Posted July 5, 2009 Cheers mate, some reading there Quote Link to comment Share on other sites More sharing options...
Al Massey Posted July 5, 2009 Share Posted July 5, 2009 Cheers mate, some reading there No worries hope it helps Quote Link to comment Share on other sites More sharing options...
Shizzle Posted July 5, 2009 Share Posted July 5, 2009 my advice is get to an advisor whos registered with the part buy part rent scheme asap they will be able to tell you if your eligable.. the funding for the open market homebuy (government scheme) ran out in a little over a month in my local area from when it was issued to the local council from the government.. ive registered for it now and put my name down in the queue but likely hood is i wont get a look in for a long time here as theres a long waiting list.. point is if your name is down for it they will get intouch with you when theres funding, your not obliged to take the offer but atleast you will have a choice (word is here there will not be any more funding until next april) really gutted i didnt just sign my name down when i first heard about it oh and yes atm theres only really 10% deposit mortgages available for standard mortgages and they have crappy rates considering the base rate is so low but i hear direct-line might be offering a 95% Loan to value mortgage not sure if its true.. but if your not looking to buy yet id wait.. save as much as pos and then look into it when your ready as deals are always changing.. Quote Link to comment Share on other sites More sharing options...
chris2o2 Posted July 5, 2009 Share Posted July 5, 2009 No worries hope it helps Very ! I'm in pretty much the same positions as Rob . I have a decent deposit buy still confused and slightly worried tbh !! Quote Link to comment Share on other sites More sharing options...
Scooter Posted July 5, 2009 Share Posted July 5, 2009 shared ownership is sold as the more affordable option (lower monthly payments) but you will end up paying more in the long run. I'm not saying its not the right move but just that you need to look over the very long term with these things. On the plus side there are some good deals right now, housing associations (i work in one) are often desperate to move on stock and get the rent coming in (we've had stock unsold for 12months+) plus you are partly protected from further drops/negative equity if prices drop over the next 2-3 years and you are in a financially sound enough position to you could potentially benefit by paying less for the remaining % or at least buy it for the same as the 1st tranche 4-5 years later. Flip side if things really take off will you be able to afford to fully buy it? Also on a issue of location, there are housing association shared ownerships that are occasionally standalone developments but usually they are part of a combined social/council housing shared ownership. From my experience i would not buy a Shared ownership flat in a block of mixed tenure. As all the large developments now must have an element of social housing incorporated into them, in nice/posh/classy areas the developers usually produce more (sometimes solely) shared ownership properties and these can be nicer places with better value retaining/making prospects. Quote Link to comment Share on other sites More sharing options...
flukey-lukey Posted July 5, 2009 Share Posted July 5, 2009 Rob - take a look at Yorkshire bank website. They seem to be offering 95% LTV mortgages and also theres a mention of 100% LTV for customers who bank with them at 5.3% I have an appointment with them tomorrow. Looking to buy a 3 bed brand new townhouse with garage for £110k, repayments should be circa £565 if my math is correct Good luck, theres lots of research to do! Quote Link to comment Share on other sites More sharing options...
RobSheffield Posted July 5, 2009 Author Share Posted July 5, 2009 Cheers Luke. Id be happy with a 2 bedroom apartment to be fair! Quote Link to comment Share on other sites More sharing options...
Whitesupraboy2 Posted July 5, 2009 Share Posted July 5, 2009 I have an appointment with them tomorrow. Looking to buy a 3 bed brand new townhouse with garage for £110k, repayments should be circa £565 if my math is correct that wont even get me a 1 bedroom flat in poole at £110,000 and if you find one it would be in the worst area going! Quote Link to comment Share on other sites More sharing options...
flukey-lukey Posted July 5, 2009 Share Posted July 5, 2009 Cheers Luke. Id be happy with a 2 bedroom apartment to be fair! Plenty of those around here! Thats all they seemed to be building at one point. I reckon you could buy a 2 bed appartment thats less than 3 years old for around £80-90k that wont even get me a 1 bedroom flat in poole at £110,000 and if you find one it would be in the worst area going! Whats the price of an average size 3 bed semi then? Quote Link to comment Share on other sites More sharing options...
RobSheffield Posted July 5, 2009 Author Share Posted July 5, 2009 Plenty of those around here! Thats all they seemed to be building at one point. I reckon you could buy a 2 bed appartment thats less than 3 years old for around £80-90k Thats the plan mate. Either in 10-14 months whilst i save a deposit (NOT selling the Supra) or earlier than that if i can secure a decent mortgage/obtain some kind of first time buyer assist. Quote Link to comment Share on other sites More sharing options...
Charlotte Posted July 5, 2009 Share Posted July 5, 2009 Like Scooter said, there are loads of downsides to part-buy part-rent schemes. It's a great way to get onto the ladder with a small deposit - you can buy as little as 20% of a property (obviously a deposit would be 10% ie 25k £2,500 of that so much more affordable). You will have to pay rent to the housing association/builder that you buy from on their part of the house. Often the rent and service charges work out to be as much as paying a mortgage with your part mortgage too. Stair casing has to be over a period of so many years to become a 'qualifying' tenant. There is always the negative fact that if you decided to sell before you've stair cased you might find it difficult selling only 20% of a property. Have you considered looking into buying a new property? Developers have some great bargains at the moment just due to the fact that they can't shift any already built houses. They will often give you incentives like money towards a deposit. Barratts just had a year end so now is a good time to look at theirs whilst they sweep up what they can for the new financial year. Quote Link to comment Share on other sites More sharing options...
RobSheffield Posted July 5, 2009 Author Share Posted July 5, 2009 Hi Charlotte. Glad to have your views on it. It is mainly new builds im interested in, and mainly flat/apartment type. I am not too keen on the 'housing assoc' side of things. Quote Link to comment Share on other sites More sharing options...
Scooter Posted July 5, 2009 Share Posted July 5, 2009 Whats the price of an average size 3 bed semi then? On rightmove if you put in :- Petersfield Hants (not a million miles from whitesupraboy) House 3 bed min Price max to 190K There are only two properties for sale in this range but these are shared ownership and come in at £107.5K for 50% ! so about double the cost of the 3 bed you are looking at...........and i've a suspicion that yours is probably larger/better too. Quote Link to comment Share on other sites More sharing options...
flukey-lukey Posted July 5, 2009 Share Posted July 5, 2009 On rightmove if you put in :- Petersfield Hants (not a million miles from whitesupraboy) House 3 bed min Price max to 190K There are only two properties for sale in this range but these are shared ownership and come in at £107.5K for 50% ! so about double the cost of the 3 bed you are looking at...........and i've a suspicion that yours is probably larger/better too. Bloody hell! Amazing difference just due to the area. The one we are looking at is brand new, very nicely equipped i.e washer, dishwasher et ect all included. Not the biggest of semis, but definately big enough for us. Its a block of 3 and has an enclosed courtyard area which makes it very private. Do you think the average salary down your way compensates for the high house prices? Quote Link to comment Share on other sites More sharing options...
Scooter Posted July 5, 2009 Share Posted July 5, 2009 Do you think the average salary down your way compensates for the high house prices? I suppose it must partly in some areas for these prices to have got up to these levels............but if your are a Copper or school teacher etc i really can't see you earning much more at all down here. Quote Link to comment Share on other sites More sharing options...
MONKEYmark Posted July 6, 2009 Share Posted July 6, 2009 hi all i have just bought my 1st house 3 bed semi with garage got it for 107,500 needs updating but its a private house not ex council and got for a good price.only down the road from where i live now.im a late 1st time buyer with no help at all put 11k down was pretty hard to get a mortgage even though i have a good paid job and been working there 16 years.it has a seperate living and dining room and plenty of space. nephew just got passed for a new build 2 bed apartment,he has got it on a scheme to help 1st time buyers get on peopperty ladder but it was only on new build properties. first time i have posted on here in ages Quote Link to comment Share on other sites More sharing options...
Thorin Posted July 6, 2009 Share Posted July 6, 2009 first time i have posted on here in ages I'd noticed! Good to hear from you. As people have already mentioned you really need 10%+ deposit at the moment (yes you might be able to get away with less but at really crap rates). Rob, you can rent my garage if you want? I'll even provide you with a sleeping bag and there's an old set of drawers in there. Obviously being part furnished will cost you a bit more. Quote Link to comment Share on other sites More sharing options...
SteveR Posted July 6, 2009 Share Posted July 6, 2009 IMHO house prices will keep falling significantly for a couple more years yet - then stagnate and fall further in real terms due to inflation for a few years more. Don't rush in just because you're approaching 30 Rob. Quote Link to comment Share on other sites More sharing options...
SteveR Posted July 6, 2009 Share Posted July 6, 2009 that wont even get me a 1 bedroom flat in poole at £110,000 and if you find one it would be in the worst area going! Want to rent my grandad's bungalow? He went into care a few months ago. Quote Link to comment Share on other sites More sharing options...
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