Me, DH and our 2 Dcs live in a house owned by a family member. Each month we pay rent to a value just above their mortgage payments. They have asked if we want to buy the house. It needs quite a bit of work doing to it so they are willing to sell it below the current market value, essentially just enough to pay off their mortgage.
We don't earn a lot, I work PT, DH works full time. But his earnings are topped up with commission. In an average year we earn around £29k. We have around £7k credit card debt (from DIY and maternity money issues) that we are slowly paying off every month.
We have been offered by DGPS the 10% required for a barclays family spring board mortgage, which is a 100% mortgage where family put 10% into a springboard savings account and as long as you keep up repayments they get this back after 3 years (with interest).
Does anyone have any experience in this? With our current financial situation would we even be considered?
Our monthly 'rent' payments are around the same as the repayments would be as far as we can see and we don't struggle on a monthly basis, just don't have much spare income at the end of the month.
This would be the only way we could get onto the property ladder unless we win the lottery/some rich unknown relative dies and leaves us a fortune. Despite the work needed we love our home, it's perfect for the kids and we wouldn't want to move for at least 10 years if not longer.
There is no rush to buy and this is more of a kind offer than a 'I'm selling the house, buy it or get out' situation. However we don't want to miss this mortgage offer if it means we can finally get on the ladder.