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No Mortgage - NQT - £70k

Discussion in 'NQTs and new teachers' 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. Er yes, you need a deposit saved to be able to buy a house i'm afraid! If you've decided you want to buy then better get saving! Your title includes '£70k' which i presume is you and your partners joint income - if so, what on earth have you been spending it on if not on saving for a deposit?
  3. Have you got a permanent job? It is harder to get a mortgage with a temp job. You will need to save up a deposit. It's normally around 5% - 10% of the house price (although I'm not sure if this changes depending on where in the country you live!)
  4. Hiya,
    My partner and I were having the same issue, and have now moved in with my parents in order to save up our deposit.
    We have been agreed in principle a 95% mortgage so we only need to save up a 5% deposit which is much more manageable. Also worth looking into shared ownerships or even a 100% mortgage if saving a deposit is a complete no-go!
    It's hard, but there are ways out of renting! [​IMG]
  5. jubilee

    jubilee Star commenter

    I'd be very wary of shared ownership schemes.
    They tend to overvalue the property.
    You pay 100% of repair costs even if you only own a 25% share of the property.
    Rent of the remaining share + property management charges can be high.
    You can be involved in what many see as unreasonable Stamp Duty payment calculations when buying extra equity in the property.
    It can be difficult to move when you want to as you are limited in the pool of potential buyers.
    You can be prevented from renting out your property if you have to move and can't sell your share (to someone who has to be accepted by the other owner of the property) or may be limited to just 6 or 12 months of renting it out.
    I know someone who works in London and earns less than an M6 teacher outside London. She is thrifty and uses the internet a lot to check out best deals for virtually all her expenditure. She could probably manage a 10% deposit on a £170k flat from savings over the past 2 years alone but would probably not be approved for a mortgage on the remaining cost based on her salary. She doesn't want to buy in London anyway.
    And no .... she's not an anti-social recluse! One of her holidays last year was in October to MALTA, where she got a room in a 5 star hotel for 5 days for £54 total!
    A couple should be able to make greater economies on heating, food etc but need to be able to cut out the luxuries that they see as necessities. Changing to something like Giffgaff for mobile phone, and getting your partner and friends to do the same can almost eliminate phone costs as calls between subscribers are free. I put £10 on my phone on 28th Feb and I still have £8-60 on it as my husband, son and daughter are also on giffgaff.
  6. Of course a lot depends on where and what you rent but if your joint income is 70K then you should be able to save up the deposit. I mean there are people living on 12K pa, too.
  7. Sillow

    Sillow Lead commenter

    I have shared ownership in London, got my mortgage on 25% last year and would never have been able to afford to buy otherwise. I still needed a deposit, but if you live thriftily for a few years it's doable. My partner is studying so doesn't earn, so I had to find the deposit and get the mortgage myself on my teacher salary.
    Yes, there may be some downsides to shared ownership but actually having a mortgage and being on the property ladder is worth it, in my opinion. I pay less now than I did in private rental and it doesn't all go to someone else, I actually own part of it!
  8. Georgia99

    Georgia99 New commenter

    I live in a shared ownership property in a gorgeous area. It is a 3 bed semi and I could never have afforded it otherwise. My house wasn't overvalued at all. When I took out the mortgage, the mortgage company viewed the house to ensure it is worth the asking price, otherwise I would not have got the mortgage. I was in tough competition with many others for the house but we were prioritised as I am a teacher and classed as a key worker so I know that upon selling I will have no trouble.
    To be honest though, I pay £500 a month which includes my rent, mortgage and buildings insurance. I have a mortgage on 40% of the property and will increase my shared when I can afford it. If had a mortgage on the whole property I would be paying 1k a month and even renting a similar property in my area would cost £900 so I think I have got a good deal and would recommend shared ownership based on my own experiences. :)
    I was wary about shared ownership because of all the horror stories but I looked at other houses for the same price up for sale in my area and they were of the same standard of my own so I did not feel I was ripped off at all.
  9. dancerstb

    dancerstb New commenter

    I just wanted to offer some advice in terms of mortgages. I'm not sure whether you've had chance to look into shared equity mortgages? It was the only way I was able to get onto the property ladder with my (now ex) partner. I think it's only on new build properties, but you own the house 100%, the house building company gave us an interest free loan for 10 years of 15% of the property and we got a mortgage for 85% of the property - in other words we didn't need a deposit. This really helped my partner and I as we were not earning much between us and needed to move. When it comes to the loan that you have, you either pay it off when you can (and it is 15% of the value of the house at the time you want to pay it off), or move and the company takes their 15%. I think they still do these deals, and it worked brilliantly for us, so just thought I would offer some info!
  10. jubilee

    jubilee Star commenter

    That scheme is still operating with new builds. The purchaser is the named owner on Land registry documentation and the mortgage company and the builder are the lenders who have first call on the resale proceeds.
    In London, the scheme operates differently but elsewhere in the UK it's called Home Buy and is for first time buyers of new properties.

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