Hiya Guys

just wondered if some of the elders could help help me I don't earn much just under 19 grand I am looking to get to the housing market via a morgage,is it possible on my salary ?



Help us guys would really appeciate it I'm a complete novice

Agape..19k is simply not enough..even with a partner you would struggle to buy any sort of descent property.... the only thing i can suggest is to consider shared ownership.

thanks K

shared ownership, you seriousyou meanthose part buy, part rent schemes >anyway salary wise what be good wage before I could consider a morgage

Hi Agape,

I am assuming you are UK based?

Its possible, but it will not be easy onyour current salary. You, however need to realisticallydetermine how much you can afford each month to pay your mortgage, keeping in mind theever increasinginterest rates. You should initally talk to friends, family etc who may have secured the services of a mortgage broker. A broker can find you the best deals which are not available to high street customers. The mortgage you can afford will be based on your salary when it is increased 3-4 times. There are associated fees with securing mortgages for e.g, brokers do not come cheap! Is there potential for you to earn more? or partner with a friend, family member e.t.c?

Holla back!!



Agape wrote:

It may be easier nowadays for some to get a BUY TO LET mtg, because the proposition with mostLenders is based upon the rental valuation and not your income. You will need a higher entry deposit though, amin of 10% is standard.

Another alternative is to move out of London, assuming you live here of course. Theres still places in surrounding counties where you can get a one bed flat or studio for £100,000. Abbey National are one Lender who will lendyou 5times your income, so you qualify for a property at this level.

You can try increasing the mortgage criteria...i.e. bigger salary, bigger deposit. There are some unscrupulous financial advisors taking maximum advantage of this situation - indeed it's the all English way - they'll make it look like you earn 60k if you want them to but you could end up with a house you can't afford to pay for - but ultimately this is illegal and you will be done for fraud if exposed.

Horrible market out there, they're even selling some old council dumps for some serious money now and most people still just want a roof over their heads as opposed to some investment in bricks and mortar. Got friends whose high rise council flats are worth a small mint simply because of the view.

Shared ownership is the best bet but I have a friend who went that route and it's not plain sailing - he's been waiting for that phone call for over 9 months now and during that time the market keeps rising and rising and rising. He is earning not much more than yourself and even the shared housing market is becoming unreachable.

You need to make a commitment, if it wasn't for the birth of my first son, I'd still be waiting for the market to crash...and he's seven years old now. I remember refusing to buy before the new millenium in case the millenium bug crashed the market...would have saved about 60K if I bought before. At the same time I remember people buying three bed houses for 60K for them to be worth 35K in less than two years.

Some have mentioned buying outside of London, this is good advice. My good friend is a property developer and even he has had to branch out to places like Chelmsford because London is just too expensive as an investment option - the only problem there is the greys...but hey if tradition is anything to go by, as soon as you move in, they'll be looking to move out

Some of my mums friends who tried to get on the property market, ended up moving to the outskirts of London, in particular areas like Surrey (Guildford, West Byfleet), an places like Milton Keynes.


However there are some who own more than one house. Basically they are like in their mid thirtys, and live at home buy choice whilst they rent out their houses, and use the money to buy pay off the mortgae on the house.

As already mentioned:

1. Shared Ownership

2. Move out of London

3. Move out of the Country

4. Club together and buy with Friends - Or in a property investment club,

5. Buy at Auction (risky but Many, Many Asians are doing it successfully)

6. Place a higher deposit.

7. Interest Only mortgage - and Pray for good investment yields and high inflation.

8. Buy Land and self build.

9. Look for run down vacant property- go to the land registery and check out the owner, Many properties are owned by Pension funds, trusts or Absent Landlords. Once you have their details make them an offer.

10. Contact Building Societies or Banks letting them know you are interested in buying reprocessed property from them.

Dada wrote:
could you expand on this option. i would love a house. though i am in the east mids and wages in comparison to property prices means that although house prices are less than london. the people dont have the affordability

example my friend is a community nurse. her new mortgage is for 149k she paid a 8k deposit her mortgage repayments are 740 quid a month. for some in the east mids that is a standard wage or a few hundred short for a monthly income



but yeah please expand on this for me

Agape: My strict advice, do not over reach youself to get onto the ladder, 4-5 times your wages is madness and should not be attempted on 19k, unless you back yourself to improve your earning power rapidly.

Moving out of London in my view is a false economy, because what you gain in mortgage payments you will almost certainly lose in commuting costs, especially if you have to travel overland...

in short be careful,

Someone who has a £100,000 repayment mortgage, on 6%, interest, over 35yrs will pay exactly £570pm. They could go "Interest Only" until their salary increases with promotion/new job etc and this would bring the cost down to £500pm

Someone on £19,000 per year will bank approximately £1200 net each month.

Therefore after their mtg is paid they will have approximately £700 pm to pay bills and live on each mth.

I suppose it depends on how bad you want to get on the ladder. One could look to relocate jobs if possible. I work in the surrounding counties and it cost me about £30 per week in petrol plus £15 pw parking, and takes less time and stress getting to and from work as im going against the traffic.

Even if you were to travel in on train, a tpyical mthly cost of train ticket from say Essex to Liverpool street would be £250.They would then need to pay council tax of which they would get single persons discount= £70 pm. Also bills typically would cost 70pmand food £150pm.

Therefore:

Income £1200 per mth

-Mtg £ 500 per mth

-Travel £ 250 per mth

-Council Tax £ 70 per mth

-Food £150 per mth

Household bills £ 70 per mth

Total expenditure £1040 per mth

Total disposable income = £ 160

Conclusion, it would be very tight, one would have to be very disciplined, but it is very possible. Many live proportionately to these parameters already, ie earn more but have higher costs includingchildren. Ive done it myself and worse than the above example, all living on a £5 per week. Where theres a will and all that.

Wouldnt discourage someone if they have worked it through on paper and are confident they are disciplined enough to cope.If they manage to do it until their salary rises and they become comfortable, then for some, it has to be better than renting, doesnt it? Especiallyif the example with renting isnt that much cheaper, which often it isnt.

There are other measures to help aid the financial struggle. Such as part-time work, overtime, or getting a girl/boyfriend or lodger to move in and help pay the mtg.

Most Lenders, who are responsible will not just lend you the money without going through an afforability exercise similar to the one above. Whats affordable to one individual on £19,000pa, may not be affordable to another who has credit cards and loans. Therefore they wouldnt get the loan if they didnt pass this affordability test, even if its with a generous Lender who has a '5 times single income' multiplier.