Can I afford a mortgage?

chaz664

I have been renting from the council for ten years now and I am looking into various options to buy my own home. I dont know where to begin, buying it outright, shared mortgage or buying a private house with council mortgage? I am just gone 30 and feel that if I do not purchase a home soon I may never do it. I am a one parent family working 16 hours a week .
It might sound silly but do people with only a part time job get mortgages?

Tiriel

Moved from Arts and Crafts

donalg1

Its very unlikely that you would get one, most places will say you have to be in full time employment for at least two years. And when assessing you they would only take into account your income from employment and never social welfare payments.

ShadowHearth

Not being smart, if you already getting help from council and working only 16hours how can you even consider buying a house?!

2 of us breaking our asses in full time jobs, haven't touched any benefits and we barely got a Morgage for less then 90k!!!

foxy06

Best bet would be to talk to the council. See what they are looking for the place your in now. If your there 10 years you would get a 30% reduction on the market value of the property. Only thing is if you buy off the council you can't just 'put in an offer' you pay what they say you pay.

Working 16 hours a week though I can't see you gettting any approval even from a council mortgage as they stress test you the same as a bank would and your mortgage can't be more than 30% of your income afaik.

My advice is get a full time job for at least 2 years and save as much as possible.

donalg1

foxy06 wrote: »

Best bet would be to talk to the council. See what they are looking for the place your in now. If your there 10 years you would get a 30% reduction on the market value of the property. Only thing is if you buy off the council you can't just 'put in an offer' you pay what they say you pay.

Working 16 hours a week though I can't see you gettting any approval even from a council mortgage as they stress test you the same as a bank would and your mortgage can't be more than 30% of your income afaik.

My advice is get a full time job for at least 2 years and save as much as possible.

+1

I think the reduction has been extended now to 15years and a max of 45%. There is also a new scheme either in or coming in called the incremental purchase scheme which means you wont be able to purchase the house you are living in but will instead be offered a new house elsewhere, not sure though if this has replaced the current Tenant Purchase Scheme yet or is it just from next year.

Would agree with the advice of a full time job and as much savings as possible, no loans either is essential, otherwise the banks and council wouldn't be in a position to give you a mortgage.

But still no harm in talking to them anyway

chaz664

ShadowHearth wrote: »

Not being smart, if you already getting help from council and working only 16hours how can you even consider buying a house?!

2 of us breaking our asses in full time jobs, haven't touched any benefits and we barely got a Morgage for less then 90k!!!

You are right but the main sceme I am considering is the shared mortgage where I can buy 60% of the house and the council still own the remaining portion until my situation changes. Plus I may only work 16 hours but my rate is very good and my outgoings arent huge.

donalg1

chaz664 wrote: »

ShadowHearth wrote: »

Not being smart, if you already getting help from council and working only 16hours how can you even consider buying a house?!

2 of us breaking our asses in full time jobs, haven't touched any benefits and we barely got a Morgage for less then 90k!!!

You are right but the main sceme I am considering is the shared mortgage where I can buy 60% of the house and the council still own the remaining portion until my situation changes. Plus I may only work 16 hours but my rate is very good and my outgoings arent huge.

I think you have to rent the other 40% from the council so your repayments are much different to the full mortgage

ShadowHearth

donalg1 wrote: »

I think you have to rent the other 40% from the council so your repayments are much different to the full mortgage

Didn't we had a thread about it before? People who went in to half and half with council houses got in to worse position then those who bought house and got in to negative equality?

Bobeagleburger

chaz664 wrote: »

I have been renting from the council for ten years now and I am looking into various options to buy my own home. I dont know where to begin, buying it outright, shared mortgage or buying a private house with council mortgage? I am just gone 30 and feel that if I do not purchase a home soon I may never do it. I am a one parent family working 16 hours a week .
It might sound silly but do people with only a part time job get mortgages?

You work 16 hours a week and are wondering can you get a mortgage?

Back in 2006 you probably would have!

Now - no chance.

John Mason

chaz664 wrote: »

You are right but the main sceme I am considering is the shared mortgage where I can buy 60% of the house and the council still own the remaining portion until my situation changes. Plus I may only work 16 hours but my rate is very good and my outgoings arent huge.

but are still have to pay rent on the 40%

no-one is going to give you a mortgage unless you are earning a ridiculous amount of money for your 16 hours a week.

foxy06

No matter what you do AVOID shared ownership at all costs. Even if you ring the council and ask them they will probably try and put you off it themselves. Its outdated and does't work well for the buyer in the long run and you will probably NEVER own your whole house.

Thespoofer

'No matter what you do AVOID shared ownership at all costs. Even if you ring the council and ask them they will probably try and put you off it themselves. Its outdated and does't work well for the buyer in the long run and you will probably NEVER own your whole house.'



Hi Foxy,

What do you base this on, have you experience with the above scheme ?

I believe if you can pay a little extra each month on top of your total 'mortgage/rent' from the rental equity balance then it works out cheaper over the life of the mortgage .

John Mason

foxy06 wrote: »

No matter what you do AVOID shared ownership at all costs. Even if you ring the council and ask them they will probably try and put you off it themselves. Its outdated and does't work well for the buyer in the long run and you will probably NEVER own your whole house.

absolute rubbish - its worked out a 100 times better for me then any of my friends with bank mortgages and my house is going to paid off a lot quicker then theirs

foxy06

When did you do it?