First time buyer - advice needed

[bitemarx]

I'm eager to get out of rentals, but facing difficulty in terms of a few things.

 

I have a small deposit and a low income. However, I anticipate my income to increase to a healthy level in the coming few months because I'm hoping to gradually transition to a much better paying job. 

I also have at least 3 friends and family who are willing to pitch in with deposit and /or as guarantors on the mortgage if it will help me purchase a good sized (preferably new build) house to fit my family (2 children). 

 

I ran some searches on online mortgage advice sites and they came back with a max lending of £90k with my current income. 

 

The houses that I'm currently looking at range between £160k and £300k. 

 

 

Is there any way or any mortgage deals or schemes that will allow me to increase the amount that I can borrow ? I would, ideally, also like to avail of the help to buy scheme if that's possible. 

 

 

Any advice would be a great help for me to decide whether this is realistic!

 

 

Edit: I don't know if this is relevant but I have land assets overseas. Would these be of any help in securing a mortgage here?

Edited July 19, 2020 by bitemarx

[London1971]

Help to buy is your best bet!

[bitemarx]

Would it be with joint borrowers? Or on my own?

 

 

[honeybee13]

Here's a link to the government's Help to Buy page.

 

https://www.helptobuy.gov.uk/

 

You mention friends and family as guarantors but I suggest you and they read up on this and the problems it can cause because we've seen a few people here who have ended up owing money when they didn't expect to.

 

HB

[bitemarx]

1 minute ago, honeybee13 said:

Here's a link to the government's Help to Buy page.

 

https://www.helptobuy.gov.uk/

 

You mention friends and family as guarantors but I suggest you and they read up on this and the problems it can cause because we've seen a few people here who have ended up owing money when they didn't expect to.

 

HB

Thank you.

 

Have they ended up owing money to the government or did you mean to the friends and family?

 

[honeybee13]

I have no experience of the Right to Buy scheme but we've seen people who've acted as guarantors ending up owing money to lenders when the main borrower has defaulted.

 

Before you embark on this, it's important to do your own research so that you and any guarantors understand what you're getting into. There's plenty of information online and the Money Advice Service site has good explanations.

 

HB

[bitemarx]

Okay, thanks, I will have a look at that. 

 

[ericsbrother]

Land assets overseas will go against you as you wont be a first time buyer so lose out on Stamp Duty thresholds and have to pay an extra 3%  as a second home owner.

Mortgage co's wont be interested in guarantors unless they own property that is mortgage free and are willing to have a charge palced upon them and it doesnt matter how good a friend yours are they are not going to happily  give away their house if you cant pay your debts.

My advice is to wait until you get that new job and your credit files are showing some stability  and look again at what you can get based on the new circumstances. house prices might well fall in 6 months time as all fo the covid chickens come home to roost

[bitemarx]

Thank you to all for your advice.

Got the job.

Decided to stay with rentals for another two years, hopefully save up and buy at that stage.

 

 

[London1971]

Nice one, !

 

I got on the housing ladder 2 years back at age 46. Hopefully will have it all done and dusted by 60

[ericsbrother]

so dont mention the overseas assest as that may be misconstrued.