1. This site uses cookies. By continuing to use this site, you are agreeing to our use of cookies. Learn More.
  2. Hi Guest, welcome to the TES Community!

    Connect with like-minded education professionals and have your say on the issues that matter to you.

    Don't forget to look at the how to guide.

    Dismiss Notice

£70k - NQT - First time buyers and can't get a mortgage ;0(

Discussion in 'Personal' started by boat4boat, Apr 9, 2012.

  1. Myself and my partner have been renting a house for a while now and would love to buy our own, but we cannot get a mortgage.
    When do you think our hard earned money will stop going to someone else on rent?
    We don't have a deposit and can see no way out!
    Thanks for any advice
     
  2. Unfortunately it is very hard still for first time buyers - I bought my first home this year, but only because my grandparents both passed away and left me £18k, bless their hearts.
    I think there are some 95% mortgages available again at the moment - so if you get an idea of what you would be looking at for a 5% mortgage and then save save save, that is the only way really. I dont know where you live or what prices are like, but if you were to go for a small flat to begin with (Probably around £80k?) then you would only be looking at saving £4k - but you'd need to add another couple of thousand on for fees etc. Generally the mortgage repayments are managable, it is the actual saving up of the deposit that is the problem!
    I do understand how you feel - renting is more and more common but you never feel like it is truly yours and live with the worry that you could be asked to leave at any point. You are only an NQT and over the next few years your pay will jump nicely - Im in my 4th year, receive a TLR and take home around £1680 a month if that is any use to you to plan for the future.
    Would there be any likelihood of family lending you the money for a deposit that you could pay off gradually?
    I would also recommend meeting with an independant financial advisor to get your head around the numbers. Most of them will be free as they make their money when you take out a mortgage through them. I know of a good one if you happen to live in Nottingham.
     
  3. You want your hard earned money to stop going to someone else as rent but you're happy for it to go to someone else as interest on mortgage. Think about why you want to buy and bear in mind that if you can't afford to save a deposit just now then you might also struggle to cope with rises in interest rates.
     
  4. If you are both earning, why haven't you got any deposit? Have you got nothing at all between you? Are you actively trying to save? Have you sat down and spoken to a mortgage advisor? I haven't had a mortgage for a while, but I would think the best thing would be to be realistic about how much you can actually save. I am afraid if you cannot raise anything you would be very unlikely to get anyone to look at you, and as Airy says you need to look at worst case scenario when entering into anything like a mortgage agreement. I remember rates of 15%, and it could,always happen again.

     
  5. Also - there are advantages in renting. Just been chatting to a friend who is going to be renting. If anything goes wrong with my property, I have to pay for it. if you are renting - it is someone else's problem.
     
  6. Middlemarch

    Middlemarch Star commenter

    NQTs could not afford to buy houses back in 1981-2 when I was one.
    I worked for 6 years, paying rent and saving as much as I could (no holidays, no car, etc), in order to afford a tiny one-bedroom flat with my boyfriend.

     
  7. I was talking yesterday to someone who knows I have invested in property. She has no money but has a new tattoo and has just returned from holiday.. I had to point out that I have gone without an awful lot to do what I have done. As you say Middlemarch, no holidays, although I have always had a car - not a great one! Few of us can have it all, sadly.
     
  8. Your boyfriend earns £50k+ so between you, you are earning around about £72,000.....and you can't afford to save for a deposit for a house? Have I got that right? I should think on that wage you'd be able to save up enough for a 10% deposit really rather quickly.
     
  9. Leicester_Vics

    Leicester_Vics New commenter

    If your boyfriend earns £50k+ I can't see how you haven't saved for a deposit.

    I'm in my 4th year of teaching now and my fiance works as a researcher at a University. We've been renting since I first started University back in 2004. Your other half earns almost as much as myself and my OH combined. We started saving a few years ago and are in the house buying process now. We've had an offer accepted on a house for just short of £185k and the bank have accepted us for a 85% mortgage.

    If we can rent and manage to save up almost £30k, it's definitely manageable for you guys. It sounds like you earn more than us combined so a few years of saving and you'll get there. It does mean going without while your saving, although we haven't had to give up all of our luxuries like dinners out etc.

    Good Luck, I know how stressful the whole situation can be!
     
  10. oldsomeman

    oldsomeman Star commenter

    that is assuming you both dont have alifestyle of expensive holidays and drink etc..whhc soon eats into your wages.plus the goverments tax demands of 40% over a certain sum!
     
  11. Yeah it's the tax thats the problem, so its nothing like that figure when its taken off.
     
  12. I understand that 40% is a lot of tax, but it is only 40% for the money that is over the higher tax threshold...you are still bringing in a significant amount of money between you.
    Where is all of your money going? You must be bringing in nearly £4000 a month after tax. Even if you pay a huge amount of rent and your bills are high - say, £2000 outgoing a month - that's still £2000 to play around with and/or save. I know I dont know your personal situation but I fail to understand how a couple with that income can't afford a few hundred going into savings every month. If you could put £500 away each month, you'd have £18k saved after three years. We bought a 3 bed semi detached in a nice part of Nottingham for that.
     
  13. It's unheard of now - unless there is something irregular or inconsistent in the way your boyfriend earns his 50K.
     
  14. Mortgages are quoted on your gross salary not income after tax. This has to be a wind up.
     
  15. Middlemarch

    Middlemarch Star commenter

    But that would be the choice they made, wouldn't it? You can seldom afford both when you're young, as I indicated in my reply about what it was like for me in the 1980s.
     
  16. dogcat

    dogcat New commenter

    I bought my first house solo in October. 95% mortgage, moved in with my bf's parents for 10 months so I could save up.I am not sure how you cannot save a deposit between you?
    Even with my house and all bills just paid by me I can still save min £200 a month most months (have to save for MA fees)
    I suppose it depends what sort of house you want, but even a 200k house would be around 20k deposit or 10k if you got a 95% mortgage, I am sure you could save that between you within 3 years or so.
     
  17. Arh thats good to hear, thank you.
    Yeah its just another 3 years of 'wasting' money when you can actually afford the repayments!
     
  18. Asta9

    Asta9 New commenter

    I didn't think 95% mortgages were available? Who from?
    I'm in London and would like to get a two bedroom flat- but most of these are £200,000 plus! We were saving for a deposit but had a setback. We might be able to save a 5% deposit though.
     
  19. There's a few lenders doing 100% if you have a guarantor.
     
  20. Not necessarily boat.
    When you buy a house, lots and lots of your money is poured into it over the years...new boilers, drives, windows, fences, carpets.....and those things are the tip of the iceberg. Rarely a year goes by without my having to find large amounts of money because something needs fixing or replacing...and DIY projects aren't cheap...neither are the professionals who come in to sort out problems. And then there are rising insurance premiums etc, and council tax...
    I am in my 50s and realise my house is now likely to be sold to pay for any care I may need in later life....You pour your money in, going without and budgeting - safe in the knowledge that your incontinence pads will be paid for in the years to come...[​IMG]
    Those who rent get the same pads...

     

Share This Page