Buying a house (and renting)

I was very much in favour of capital repayment mortgages until recently but have come to accept that interest only certainly has its place and is even the better option in some cases.

As Hexx says the key is that you have a plan in place to repay the capital eventually, the lender won't let you take on an interest only mortgage if they are not convinced that you are going to be in a position to do this.

We moved house last week and our new mortgage is part interest only and part capital repayment. By doing it that way we have been able to make a move that gives us what we needed as a family but at a significantly lower monthly cost than would have been the case with a full capital repayment mortgage. Plan is to switch the interest only part back over to repayment (either in one go or bit by bit) over the course of the next 5-10 years.

Is Help to Buy an option? That will mean a lower deposit needed and lower mortgage for at least 5 years.

Qikz wrote:

Albear wrote:I didnt think they did them anymore?

Yeah they still do them. I'm trying to weigh up how I can afford my own place. I think I've figured out I can afford without Interest Only but it's an option.

I wouldn't.

It looks cheaper but in reality you never pay off anything and end the end the term you need to sell to pay off the capital unless you have the money.

Your better off looking somewhere more affordable.

Mortgages are dumb, I pay more than 800 per month rent currently and only have about 200 quid outgoings bill wise which isn't as much as my mortgage would cost and it appears I can't even get a mortgage that will cover me despite a more than 10% deposit and a decent income.

If I can afford 800quid rent every single month and have done so for 3 years now, why am I not allowed to spend 500 per month on a mortgage. It's ridiculous. Apparantly with a 30k income the only hope I have is getting a 100k mortgage max which means I'm basically forced into shared ownership which I don't want to do because I'm still stuck paying strawberry floating rent. Argh.

I can't move further away than where I am, because my last remaining family are here, my job is here (which pays pretty well all considering) and my life is here now. I can't move anywhere more than a bus ride away or I wouldn't be able to get to my job or my family, so I'm basically stuck throwing away my money on rent as I'm never going to be able to afford my own flat. strawberry float.

£30k per annum, hardly any outgoings and you can only get £100k?

That doesn’t sound right to me.

I'm an underwriter and we lend 4.49 times income on £30k.

I guess you have loans, credit cards etc in the background bringing the figure down?

Moggy wrote:£30k per annum, hardly any outgoings and you can only get £100k?

That doesn’t sound right to me.

I dunno, it's about 3.5 times income.

Qizk, you need to find a proper mortgage broker, not one of these nuggets that work for a bank. These fellas will get you a mortgage at better rates, and also the lending criteria will be much different, i.e. they will lend you more than 3.5 times your salary, usually. The trick is trying to find one...

We used London & Country for our mortgage brokers when we got our latest mortgage, there were really good throughout the whole process and helped us find a really good deal.

£100k on a £30k income does seem a bit short, our first mortgage 10 years ago was based on my income which was less than that and we got £125k.

pjbetman wrote:

Moggy wrote:£30k per annum, hardly any outgoings and you can only get £100k?

That doesn’t sound right to me.

I dunno, it's about 3.5 times income.

Qizk, you need to find a proper mortgage broker, not one of these nuggets that work for a bank. These fellas will get you a mortgage at better rates, and also the lending criteria will be much different, i.e. they will lend you more than 3.5 times your salary, usually. The trick is trying to find one...

I used the mortgage calculators on HSBC and Halifax and they both suggest around £142k for a £30k salary. They might not be that accurate but he should be easily able to get more than £100k.

SD, check out these people: https://www.landc.co.uk/ , I used them when I bought a flat a few years ago and they were great. It’s free as well.

poshrule_uk wrote:I'm an underwriter and we lend 4.49 times income on £30k.

I guess you have loans, credit cards etc in the background bringing the figure down?

Sorry apparantly according to this external mortgage broker who helped my Dad I could get 147k which is a lot higher bit still nowhere near enough.

I don't have any credit cards or loans, never have which probably doesn't help but I've never wanted to risk being in debt.

Issue I have is "affordable housing" aka shared ownership in this area want these kind of figures:

Monthly Cost* £1,292
Rent £656 | Service charge £110 | Mortgage* £526

This is with a 30k deposit.

Jog on, how the strawberry float is that affordable. You open the scheme up to anyone who earns less than 80,000 or whatever, but unless you make close to that you don't even stand a chance.

Got my remortgage sorted out, 5 years fixed, tenner higher than what I'm paying now. 100 quid bonus for sticking with Nationwide.

Not having any loans/credit cards may well count against you. It’s unfair but with no credit history you are seen as higher risk.

Get a credit card with a small limit and just make some small purchases to build up your credit history a little bit. Just don’t overspend and keep the limit relatively low.

Yeah you need to create a good credit profile for yourself. I stared using a credit card with a low limit to do things like filling the car with petrol or the odd weekly shop, then paying off the balance at the end of each the week.

Qikz wrote:

poshrule_uk wrote:I'm an underwriter and we lend 4.49 times income on £30k.

I guess you have loans, credit cards etc in the background bringing the figure down?

Sorry apparantly according to this external mortgage broker who helped my Dad I could get 147k which is a lot higher bit still nowhere near enough.

I don't have any credit cards or loans, never have which probably doesn't help but I've never wanted to risk being in debt.

Issue I have is "affordable housing" aka shared ownership in this area want these kind of figures:

Monthly Cost* £1,292
Rent £656 | Service charge £110 | Mortgage* £526

This is with a 30k deposit.

Jog on, how the strawberry float is that affordable. You open the scheme up to anyone who earns less than 80,000 or whatever, but unless you make close to that you don't even stand a chance.

Have you looked at your score on Experian?

Ok, found a shared ownership place that's actually really nice and I can afford the per month cost. I've put my interest in and I'm going to call them tomorrow if I don't hear anything since I want to see it this weekend.

Might as well go for it if it's good.

Qikz wrote:Ok, found a shared ownership place that's actually really nice and I can afford the per month cost. I've put my interest in and I'm going to call them tomorrow if I don't hear anything since I want to see it this weekend.

Might as well go for it if it's good.

Don’t just jump straight in, have a look around at a few others first. Buying a property is a very big commitment, don’t just buy the first one you see.

Moggy wrote:

Qikz wrote:Ok, found a shared ownership place that's actually really nice and I can afford the per month cost. I've put my interest in and I'm going to call them tomorrow if I don't hear anything since I want to see it this weekend.

Might as well go for it if it's good.

Don’t just jump straight in, have a look around at a few others first. Buying a property is a very big commitment, don’t just buy the first one you see.

Issue is shared ownership around here isn't a big thing. There isn't a big number around and the ones that are on the market now are in that development (the other developments in the area are not adding any shared ownership ones) or really old buildings I'd need to rennovate.

This is in a good area, I saw it online before and I was interested in it then. It's really, really big. It'd give me like a studio to do my streaming and what not from, a massive bedroom and a living room/kitchen which is actually bigger than the place I live in now and pay obscene rent for.

I want to get out of rental and if I can I'd love to get a new place that looks nice. I won't rush in if I don't like it, but if I like it I'll go for it.

Qikz wrote:

Moggy wrote:

Qikz wrote:Ok, found a shared ownership place that's actually really nice and I can afford the per month cost. I've put my interest in and I'm going to call them tomorrow if I don't hear anything since I want to see it this weekend.

Might as well go for it if it's good.

Don’t just jump straight in, have a look around at a few others first. Buying a property is a very big commitment, don’t just buy the first one you see.

Issue is shared ownership around here isn't a big thing. There isn't a big number around and the ones that are on the market now are in that development (the other developments in the area are not adding any shared ownership ones) or really old buildings I'd need to rennovate.

This is in a good area, I saw it online before and I was interested in it then. It's really, really big. It'd give me like a studio to do my streaming and what not from, a massive bedroom and a living room/kitchen which is actually bigger than the place I live in now and pay obscene rent for.

I want to get out of rental and if I can I'd love to get a new place that looks nice. I won't rush in if I don't like it, but if I like it I'll go for it.

I get that but make sure you are 100% happy with it. This is the biggest purchase you will have ever made, make sure you are sure.

Moggy wrote:

Qikz wrote:

Moggy wrote:

Qikz wrote:Ok, found a shared ownership place that's actually really nice and I can afford the per month cost. I've put my interest in and I'm going to call them tomorrow if I don't hear anything since I want to see it this weekend.

Might as well go for it if it's good.

Don’t just jump straight in, have a look around at a few others first. Buying a property is a very big commitment, don’t just buy the first one you see.

Issue is shared ownership around here isn't a big thing. There isn't a big number around and the ones that are on the market now are in that development (the other developments in the area are not adding any shared ownership ones) or really old buildings I'd need to rennovate.

This is in a good area, I saw it online before and I was interested in it then. It's really, really big. It'd give me like a studio to do my streaming and what not from, a massive bedroom and a living room/kitchen which is actually bigger than the place I live in now and pay obscene rent for.

I want to get out of rental and if I can I'd love to get a new place that looks nice. I won't rush in if I don't like it, but if I like it I'll go for it.

I get that but make sure you are 100% happy with it. This is the biggest purchase you will have ever made, make sure you are sure.

I will do man, no worries. The thing is in the end it's the biggest present my mum will have ever given me and I wouldn't even have this chance without something extremely gooseberry fool happening, but now that happened I need to make sure I do everything in my power to use that money to give me a happy life.

Qikz wrote:

Moggy wrote:

Qikz wrote:

Moggy wrote:

Qikz wrote:Ok, found a shared ownership place that's actually really nice and I can afford the per month cost. I've put my interest in and I'm going to call them tomorrow if I don't hear anything since I want to see it this weekend.

Might as well go for it if it's good.

Don’t just jump straight in, have a look around at a few others first. Buying a property is a very big commitment, don’t just buy the first one you see.

Issue is shared ownership around here isn't a big thing. There isn't a big number around and the ones that are on the market now are in that development (the other developments in the area are not adding any shared ownership ones) or really old buildings I'd need to rennovate.

This is in a good area, I saw it online before and I was interested in it then. It's really, really big. It'd give me like a studio to do my streaming and what not from, a massive bedroom and a living room/kitchen which is actually bigger than the place I live in now and pay obscene rent for.

I want to get out of rental and if I can I'd love to get a new place that looks nice. I won't rush in if I don't like it, but if I like it I'll go for it.

I get that but make sure you are 100% happy with it. This is the biggest purchase you will have ever made, make sure you are sure.

I will do man, no worries. The thing is in the end it's the biggest present my mum will have ever given me and I wouldn't even have this chance without something extremely gooseberry fool happening, but now that happened I need to make sure I do everything in my power to use that money to give me a happy life.

Good on ya man. In another 5 years you might have built up enough equity to afford your own place. Might be worth making some overpayments to build up your equity.

If you get to the stage that you own a property in London, and if you ever move anywhere else outside of London boroughs, you'll be very well off.