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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Original poster

AIBU to feel sad and frustrated re: the possibility of getting a mortgage? How the jeffing chuff are we supposed to do it?

30 replies

SuzySheepSmellsNice · 24/08/2013 19:58

I studied hard, have a reasonable job, we both earn mid twenties... But when we enter the figures into the mortgage calculators, they want to offer us about £80,000... We live on the south coast, I don't think that would even buy a nice caravan. We pay almost £800 pcm rent, so we could afford the mortgage repayments
Sad
«sobs»

OP posts:
RandomMess · 24/08/2013 20:02

Yes but when interest rates go up that £800 could become £1,600 that is the problem.

Have you got much of a deposit yet? Just keep saving as hard as you can.

givemeaboost · 24/08/2013 20:03

have you considered shared equity? or new builds-ones nr me offer only 5%deposit and homeowners loan

Original poster
SuzySheepSmellsNice · 24/08/2013 20:06

Shared equity as in someone else going in on the mortgage? The only person that could is DH's dad, and I don't think he's keen... (though could afford it)

OP posts:
Original poster
SuzySheepSmellsNice · 24/08/2013 20:07

I know we need to keep saving, but its so demoralizing Sad
I'm going to look at some of those government schemes again... Didn't seem to be much in our area

OP posts:
RegainingUnconsciousness · 24/08/2013 20:08

Yes, have a look at the offers on new builds. It's the only way we got one.

RandomMess · 24/08/2013 20:10

I can understand how demoralising it is. Can you move further away with a longer commute?

Original poster
SuzySheepSmellsNice · 24/08/2013 20:13

I don't think moving location would help much, plus we need to stay round here really as my mum very kindly looks after DS while I work 3 days a week.

OP posts:
makemineamalibuandpineapple · 24/08/2013 20:20

I feel exactly the same as you OP. My rent is £725pcm so I could easily afford a mortgage. However, I am in the catch 22 situation of being unable to save because I am paying the rent. I just wish the bank would take into consideration the fact I have not missed a rent payment in 6 years rather than being obsessed with a deposit Sad

RedHelenB · 24/08/2013 20:28

How about if you took the mortgage over a longer period like 30 - 35 years?

Original poster
SuzySheepSmellsNice · 24/08/2013 20:46

Poor Malibu :( same here though...

The mortgages I've looked at are 30 years, I will have a look for a 35 year one

OP posts:
tallwivglasses · 24/08/2013 20:49

this is shit :(

But the fact that you are so wonderfully imaginative with your expletives makes me confident that you will find a way :)

Or you could try cosmic ordering...

pianodoodle · 24/08/2013 20:51

We're in the same position OP and malibu we've been paying same amount of rent as you for years too :(

We're just lucky we love our house and have managed to find a great landlord and know we can stay here as long as we need to. I really wanted the stability for DD so that's good at least.

Saving isn't happening at the minute!

moustachio · 24/08/2013 20:53

We're in the exact same situation. DP earns 30k and me17k. We're only 23 though so doing well. We've had to move back in with my parents after 5 years of renting together. Our only option is to get a stinking great deposit.

In our area (London suburb) its around £200,000 for a 2 bed flat (we have a 2 year old). So realistically a 10% deposit is £20,000 or a 20% deposit being £40,000! Its impossible! :( I hate living back home, but we are lucky we have that option. SIL has a half rent / half buy property but it just seems she's a glorified Tennant to me. I've read a lot of negativity about those types of houses.

ILikeBirds · 24/08/2013 20:54

Do you have a lot of debt? Online mortgage calculators indicate that with zero debt you'd be able to borrow far in excess of £80,000 on two 25k salaries and one child.

We earn a bit less each but I was actually shocked with how much we would have been eligible to borrow despite the fact that lending criteria is now more strict.

moustachio · 24/08/2013 20:55

We used to live in the north west, we could get a nice house for 100k but DP was earning 20k for the same job he does in London so we have to be a commutable distance.

Buddhagirl · 24/08/2013 20:58

It's all about the deposit I'm afraid, our combined income is in the mid 30's but we can borrow 180000 as we have a good deposit.

Also do the calculator with no debt and see what you get.

Tbh 800 pcm is not enough if you don't have like 20% deposit. Interest rate of 4-5% is brutal. The average first time buyer deposit is 20%

pianodoodle · 24/08/2013 20:59

This Daily Mash article gave me a laugh at least

www.thedailymash.co.uk/news/society/people-who-dont-buy-a-house-will-never-be-happy-2013082178832

Beastofburden · 24/08/2013 21:48

Susie, would DHs dad lend you the deposit? That's how we did,it, 15 years ago, so it is not a new problem.

holidaysarenice · 24/08/2013 21:54

On a 25k salary with a 30% deposit I easily got a mortgage for 75000.

It definitely is do-able, its more about loan to value rate than the total amount to borrow.

ConstantCraving · 24/08/2013 21:55

Blimey! How many people's Dad's can lend them 20K!!? We rented for 5 years, lived with parents for 3 years, no holidays for that period other than UK with friends and then finally got mortgage. It's rubbish, but that is the only way many people will manage to do it nowadays.

maddening · 24/08/2013 22:01

Shared equity is where a housing association owns half for which you pay low rent. Have you also looked at first buy - don't know if it can be done on shared equity - but the government lend you a 20% deposit which would mean if you have a £10k deposit then (if first buy allows shared ownership) you would have £110 k ish to buy into a 50% shared ownership of a £220k house with the option to buy the other 50% at a later date and not necessarily in one go (eg you might be able to buy an extra 25% and then the rest later on if finances allow)

Buddhagirl · 24/08/2013 22:20

I agree, definitely about LTV rather than amount you earn.

We were very lucky, inlaws gave us 27k and we got an injury compensation pay out of 25k for deposit. So poor parents, 1 less finger and 8 months of recovery and suffering later....

SuperFlea · 24/08/2013 22:50

I earn £22,000 soon to hopefully increase to £25,000 (I'm 21) and OH earns £16,000 (He's 26) and between the two of us we should have £14,000 in savings by next year. We are more than in a position to get a mortgage now but the story was very different a year ago!
We just save save save and I actually have a second job which pays only into savings and run a small business that also only pays into savings.
I completely agree that it is crazy to get on the property ladder, especially in comparison to 20 years ago!

Try this calculator: www.comparethemarket.com/mortgages/ Its really useful and will work out how much you can borrow and some mortage prices for you too

NapaCab · 25/08/2013 00:17

You've got to either change jobs or change location. You could afford a mortgage in some parts of the UK on your income but not the south of England.

Can you get extra income somehow to save up a bigger deposit? That's what we had to do as we lived in an expensive city. DH starting doing consulting work which helped us bump up our deposit. Still got screwed on the interest rate though as you need 40% to get the best rates!

WhataSook · 25/08/2013 09:25

I get what you say OP, we are in London and our mortgage is cheaper than our rent was! It's getting the deposit together that is tough.

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