mortgage inquiry

**Bournecrazy** · 01-07-2009, 11:29 AM

Me & DBF went to see someone about how much we could afford for a mortage with our current loan and car loan, we can get upto 68,000 + deposit but we would need a 10% deposit min so we will need to be able to double our savings so we have enough for a deposit. There is nothing going for sale that we like at the moment so we are saving still, i will have to look at budget to see if we can add more to it.

**MandiDawn** · 01-08-2009, 12:42 PM

Yep - I say save a little more than 10% plus save a few thousand to have in case something comes up at the new house. You would be so suprised at how fast you can go thru money when moving into a house. You'll get there before you know it!

**phoeny_moonstar** · 01-08-2009, 12:59 PM

Good luck on finding a new home! Like the previous poster stated you might want to save a few extra k's just in case something happens while your moving in!

**Bournecrazy** · 01-08-2009, 05:38 PM

i just wish me and dbf had better paid jobs, as we are only able to save about £250 a month into the fund plus a bit extra on what i sell on ebay

**InDiAnNa** · 01-08-2009, 05:54 PM

Bourne, have you checked out whether you/DBF are eligible for Working Tax Credits or Income Support? Now I don't know either of your incomes or the exact criteria for those benefits, but it might be worth checking out, especially seeing as one is a return of money from the tax man oh my!

I'm not a huge fan of our UK benefit system as I feel it supports the type of people who don't actually need that help, but things like Working Tax Credit are good cos they actually reward those who work!

Also, have you looked into part rent part own schemes? There are LOADS here in London, and of course they are all for flats in blocks, but it's still a foot on the property laddder. They're usually based on a 40% ownership, and then you pay the company that owns the building rent on the other 60%. You have the opportunity to buy more and more of your property in small increments, and can eventually own 100%. It's something FDH and I have looked into. Even though it wouldn't be a dream home for us, it'd be equity, something we could sell on easily, and a start in the property ownership club!

I don't know what you would have in your area, but have a think on it.

Like you say, it'd be easier if we lived closer!

**Bournecrazy** · 01-08-2009, 06:59 PM

well where we are, in the East Midlands you can buy 2 bed flats for about 70k and the occasional house comes up for about 75k, i have never been a big fan of the shared option as most of the properties that are up for the shared option are worth about 60k to start with so to me its just worth paying more to get 100% of the property.

i know what you are talking about with the tax credits a guy i work with (hes 17 with a kid) and he said he actually gets more money not working then he would working full time. i shall have to look into working tax credits.

**Bournecrazy** · 01-08-2009, 07:28 PM

i applied for the tax credits and got turned down they said this

Your household is not entitled to Working Tax Credit because of the following reasons:-
- The claimant(s) must have children and work 16 hours per week or more.
or
- Claimant(s) who do not have children must work 30 hours per week or more and be aged 25 or over and are not disabled.
or
- Claimant(s) who are disabled must work 16 hours per week or more.
or
- Claimant(s) who are aged 50 or over must have been unemployed and in receipt of benefits for 6 months leading up to the claim and work 16 hours per week or more

there was no mention when i first started that you had to be over 25 if you had no children. stupid government *shakes fists*

**Greebo** · 01-09-2009, 08:52 AM

Ok I'm gonna chime in with a little food for thought here. Read at your own risk.

Buying a house while not married. Risky. Two reasons:
1) You don't know how far yet from your in-laws you should live. Believe it or not, marriage DOES change the dynamics. Sometimes a little, sometimes a LOT, and you won't know until you are wed how much.
2) You aren't a legal unit yet. If the marriage doesn't happen (knock wood that it does), now you're in business with someone to whom you have an "ex boyfriend" relationship. Not a good situation to be in.

Buying a house while you have debt. Bad idea. You're just adding more debt. Get debt free and get an EF built up. Get the wedding paid for. Be in a STRONG financial position before buying a house, not in a position where buying the house is a stretch you have to strain for.

Buying a house ties you to the area - you have low incomes - to improve your income may require relocation as you establish your careers. Buying a house and selling in a short time frame can cost you thousands. Get settled in career first, then buy.

Just some things to chew on...

**itlw8** · 01-09-2009, 02:16 PM

I have to strongly agree on that. Until you are married you should not be buying a house. Until then money should be kept seperate.

Too much wrong could happen. what if one of you died and you had no will where would the other 1/2 go there is not spouse... his parents???

Please do things in order and keep saving It could be that spending that money on education would be the wisest thing in the long range plan of life.

**Bournecrazy** · 01-10-2009, 05:44 AM

Originally Posted by Greebo

Ok I'm gonna chime in with a little food for thought here. Read at your own risk.

Buying a house while not married. Risky. Two reasons:
1) You don't know how far yet from your in-laws you should live. Believe it or not, marriage DOES change the dynamics. Sometimes a little, sometimes a LOT, and you won't know until you are wed how much.
2) You aren't a legal unit yet. If the marriage doesn't happen (knock wood that it does), now you're in business with someone to whom you have an "ex boyfriend" relationship. Not a good situation to be in.

Thank you for your comments. However...

I live with my future in-laws at their house, we are going to get a house in this area or in town so we won't be to far away.
We do not want to get married until we have our own house, as it seems pointless being married and not living together. I understand your getting debt free first but that would take me 2 years or would seriously damage any deposit meaning it would take even longer to save a new deposit.

**FrugalMomof3** · 01-10-2009, 07:53 AM

I have to agree that you should be married first before purchasing a home, JMHO however, if you do decide the purchase a home, keep in mind they will run credit reports and notice you still have debt which might lower the amount your eligible for to purchase the home.

**Bournecrazy** · 01-10-2009, 10:09 AM

Originally Posted by FrugalMomof3

if you do decide the purchase a home, keep in mind they will run credit reports and notice you still have debt which might lower the amount your eligible for to purchase the home.

we are aware of that, when we went to speak to someone she explained about having the debt as well as a mortgage, i dont know how they work out how much you can afford in the US for mortgage but here they take your combined income and any outgoings ie: debts then they figure out what you can afford.

for us we can afford 68k plus 10% deposit with a loan and a car payment, but if the loan is paid off (and will be in October) we can get 82k

this is based on a combined 21k earnings

**BangelBrown** · 02-05-2009, 08:30 AM

My DH and I got married and paid off $6000 in his debt. Then we saved and extra $6000 before we bought our house. It was hard for us and it took alot of time, we managed to do it. Good luck

**Bournecrazy** · 02-10-2009, 07:16 PM

was just re-reading before i post an update - some things i missed before

Originally Posted by Greebo

Get debt free and get an EF built up.

My debt is almost gone less than 1k and i have an EF already so thats not a problem

Originally Posted by Greebo

Buying a house ties you to the area - you have low incomes - to improve your income may require relocation as you establish your careers. Buying a house and selling in a short time frame can cost you thousands. Get settled in career first, then buy.

We are looking at a place just on the next street from us i like the area and it is only 5 minutes from the airport - i want to work in travel so the airport near us is good for that.

i will post a new update in a new thread