With this deposit, would you get a full mortgage or shared ownership?

[LondonDaytime]

I have £20k gratefully received unexpectedly due to an incident last year that is now resolved.

We live in the South East and really don’t want to move away from family on H’s side due to support network, working both ways.

I am torn between getting a mortgage as normal or going down the shared ownership route. It seems I’m more likely to be accepted with shared ownership anyway? Since I work PT. H is FT.

We would only have a 20k deposit and can’t really add to it all that much realistically, so if we buy now that’s it. The average price of a 3 bed in this area is £420K. We live in one of the cheapest and bad rep towns in the SE! Although it’s near an air port which bumps up the price.

What would you do in my situation? H wants to let me make the final decision as he believes we wouldn’t have that amount of cash without me...

I'm not sure I'd be paying a premium to live near an airport in the current climate.

Lots of well paid people (pilots, maintenance techs) are likely to be struggling over the next year or two so the increase in sales and repossessions could affect prices and your deposit would be lost if you've bought before prices drop as you'd still have a mortgage but no equity.

Do you need regular close contact with your inlaws or is there something cheaper available an hour or two away?

Unless you have a high income (£100k) you can't afford an average 3 bed semi at that price anyway.

The moneysavingexpert guide for FTBs will probably answer a lot of your questions about the finance aspects of buying

www.moneysavingexpert.com/first-time-mortgage/

Yes I know we can’t afford an average 3 bed semi at that price But it seems we will be accepted with Shared Ownership much easier.

The thing about the air port is it’s great to have so nearby, I personally never really hear the planes and must be blind as I never see them much either?! But it’s also 40 minutes away from London by train

I’d be happy to move out to somewhere else nearby but the prices are really the same. There’s one ‘good’ area here postcode wise, the rest is a dogs dinner really

Luton?

Either way I'm not sure I'd want to pay a premium just for being near an airport. Airports don't become inaccessible just by virtue of moving a bit further out.

Could you afford the "good" area? Or a bit further along the train line? Or to a different train line?

It is Luton, yes. We currently rent in the ‘good’ area but wouldn’t consider buying closer to the town anyway as it’s far too crime ridden and just very down in the dumps.

I’m shocked at the cost of it. You could move 5 minutes down the road to Hertfordshire if you’d like to add another £100k or so

There's a few nicer places to buy just outside of Luton which won't make too much of a difference on travelling. Milton Keynes is a good shout or moulton mowbray is up and coming with a new estate. I'm originally from Luton but live up north now but all my friends and family have moved to Leighton, MK or MM which has decent links into London, still easy for the trains/airport more so with the new bypass and you probably visit MK for shopping over Luton anyway so isn't too bad to travel the other way to see family.

It sounds like your options would be shared ownership or don’t but for the forseeable, what is your combined income? Typically to buy you would want a 10-15% deposit, and unless there are any small flats on in that bracket you might not be able to find anything to buy outright.

I agree with others that I would not pay a premium to be near an airport unless I was a pilot!

To answer your question though I wouldn't do shared ownership as I can't see it being easy to sell on in the future. With your deposit size I would look at maybe a help to buy new build if there's anything about left before the new cap comes into place April

I thought shared ownership was a good option because you can eventually buy 100% of the property. But does that take it from being leasehold to freehold?

Luton must be one of the most expensive places in Bedfordshire and probably the least liked.

As you said you're living in the nicer part of Luton and you're paying for that. What is the 'nicer' things you like? Is it the schools or is it because you want to be within walking distance to your parents?

www.rightmove.co.uk/properties/73701621#/ - that's biggleswade, 30 minute drive, on the train to Gatwick for £280,000

Most will give you the freehold at 100% OP, but not all, so best to check that before you pay any fees.