Property ladder- how?

[hercules]

How the f are we meant to get on it?

some lenders will lend 5x an individual wage, but it is normally 3-4x a joint income.

it's all very well getting the green light for the borrowings but you have to be comfortable with the massive (as a % of income) payments you'll be making. no point in owning your own home if you live off beans on toast & the repayments keep you awake at night

some lenders will lend 5x an individual wage, but it is normally 3-4x a joint income.

it's all very well getting the green light for the borrowings but you have to be comfortable with the massive (as a % of income) payments you'll be making. no point in owning your own home if you live off beans on toast & the repayments keep you awake at night

lol namechange - I guess your're absolutely certain about that point

But I do agree with you that you have to make sure you can still 'live' as you'd wish to live. Obviously if you're willing to take a 'drop' in luxuries and live on beans on toast that's fine (personally couldn't stand the smell that would probably accompany that with 3 'men' in the house LOL)

How much would a mortgage be on £200,000?

sorry about that, i'm on a pda & my stylus skills are a bit hit & miss

Hercules - not certain, but think it would be around £1200-£1300 a month.

DH reckons a £200,000 mortgage would be about £900, depending on the deal you get. Certianly based on current rates you can get it to about £900 a month.

depends on the rate and the duration, but i'd guess at around 1150 a month over 25 years

mortgage calculator here hercules

Hercules - I thought you were a teacher - key worker housing grant? (but may have got that wrong - sorry).
If you are a council or HA tennant: shared ownership? Or does your council give money for giving up a council or HA property? If you do end up with a mortgage which is a v high multiple of earnings, make sure you buy somewhere big enough to rent out a room? Any possibility that a parent or IL could get a mortgage on a property - which you would pay?
get a 'buy to let' mortgage on a property somewhere esle (i.e not in S.E) and rent it out - you won't be living in it, but you will own property.
Bloody hard.

DH suggests having a look at www.halifax.co.uk to have a look. That can give you a rough idea at repayments, and then from there you can look at who else can beat their rates to get it lower.

I'd say 1150 over 25yrs sounds about right - I guess it would depend on the value of the property and size of your deposit. We have a mortgage of £110k and pay nearly £700 over 25yrs (I think)

our mortgage is on a 5 year fixed rate, the lowest rate on the market over 25 years and is more than 900 a month for a 185k mortgage. thankfully we have plenty of equity !

certainly surrey is one of if not the most expensive area to live in interms of property prices. so depending on where you &Dh work, you could consider moving further south or considerably further north. i would advise against buying the highest morgage you can afford as rates can easily go up or one of you can loose their job. you also have to calculate if 5x an individual sallary is higher that 3xjoint sallaries and take it from there. deffinetly seak to a financila advisor to get an idea about what you can afford and have a look on the internet for possible properties. also consider properties in need of attention as they are cheaper and hopefully you can do it up yourself then sell it for some profit. soem employers offer help with buying houses so have alook at that aspect too (i.e. teachers, nurses, police or if working for a financial institution you might get prefferential deals).

Just seems very costly, compared to figures we have for a larger mortgage. It also depends I guess on what type of mortgage you have - repayment, interest only, endowment, and all the others, etc...

Best to seak with a reputable IFA once you have done some basic research. A god IFA should find the best rate for you. And herucles - being a teacher there are some companies who will give you preferential rates simply because of that

Hula - suggest the number you are quoting is for interest only????

Also it maybe for a discount period which is quite possible.

However long term apr of less than 5.5% is unlikely so over the long term £1100 would be the norm.

Sorry - should say the norm for a repayment mortgage.

Yes,I am a teacher and have looked into that. Trouble is it ties you to the profession and I dont think I could cope with it ie leave my job then lose the house....
I could afford to pay £1000 a month on a mortgage.

Soapbox - I suspect you are right as that is what DH has been looking at - as he will use other investments we have (and later when/if equity partner in a few short years!) his prfit binues. This is the best way for us - maybe not for everyone though I guess.

I always forget that this is the ones he looks at right now.

Ah, very true hercules - I am living proof that it can happen (changing your mind with profession I mean).

Some people are buying abroad and waiting for prices there to improve as a way of getting started. (Eg Roumania,Bulgaria,Turkey)
There was an article about it in the Sunday Times last week (not my usual paper I hasten to add, but living abroad, the only one I can get on occasion.) They profiled a young woman who had bought a ski lodge in Roumania for K30.

It's a minefield though. Coming from north Wales and having seen prices rocket way beyond the reach of most locals because of investment buying, my instinct is that it is immoral.
But, you can't argue with the wishes of people wanting to make some money I suppose.

ours is a straight-up repayment mortgage. dh bought his first house during recession when IRs were 15% . he swore he'd never take the risk of endowments etc... can't say i blame him.

lol Hula tell me about it - DH has been talking about setting up a business for ages. Waits until we've moved into the new house with huge repayments - then quits his job 3 months later to set the business up (we're now at that horrible stage of living off 'cash' that we've got until the business is running).

Thanks for the morgage calculator Tinker- I now know for sure that we can't afford to buy! Waaah. It's just ludicrous- we have a perfectly good combined salary, above the national average I'm almost sure.

same here scummymummy. It's madness.