Chance of a fresh start?

[lizzydripin]

Hi All

I am back for a bit of advice please

As you may know from previous threads OH was made redundant a couple of months ago, he is due his final payment in about 5 days time.
Our house at the time was a tied cottage which we are still living in but the rent will be going up soon to a market rate set by the company that has taken over from OH. We have been looking for alternative rented accommodation and have not really seen anything. I have now come across a house offered on shared ownership which we really like. We have been accept by the housing side but obviously would now need a mortgage for the part we would need to buy. My question is do we stand a chance?
We would be buying a 40% share for £118,000 and then paying £280 rent for the rest. We are both just over 50. We have now paid off all but £400 of any debts. We have a little savings plus the redundancy, we are not quite sure how much as there should be some extra to the statutory. OH is now on £39,500.00 per annum and I am on £23,300.00 Per annum.
If there is any chance and does anyone know which provider would be the best to approach?

Thank you so much
Lizzy

[melonfool]

What does your credit file look like - it would be worth getting an up to date copy and ensuring any out of date information is corrected before you apply.

In your circumstances I would suggest using a broker - they will know the best provider to try and can sound some out without searches showing up. And, I would suggest using a fairly small, local broker, not a national one (who, quite frankly, don't give a stuff). Someone you can sit with and explain the situation. Ask around for recommendations.

I think you will get it - is OH out of his probation period (if there was one) and are both jobs, as far as you know, permanent and in the same or a similar field to the last roles?

Have you done a budget? Do that. Do it on 6% interest for the mortgage (not as 'worst case' [it can get worse!] but just as 'possible if we have a poor credit score' - if this happens you can always remortgage in a couple of years). I reckon the most they'll let you mortgage over is 15 years, so the repayments might be quite high but you have a decent joint income so probably be able to do it.

You would probably need a 10% deposit. Are you likely to have that?

Mel

[GrandOiseau]

Why do you ask if you stand a chance?

Why wouldn't you stand a chance?

[lizzydripin]

Hi Mel

Thank you for the advice.

I have not checked our credit yet but last time I looked it was fine.

OH had three months probation but they are more than happy with him so that is okay, it is a different role from his previous job but related.
My job has not changed I have just had a payrise. Both jobs a permanent

I have spoken to a broker today and we have a meeting tomorrow. After taking down details over the phone he estimated that we would get a mortgage for 17 years and need a 10% deposit. He advised me to get an offer in on the property straight away as he said they are not often available in this area.

I put an offer in to the estate agent who came back to me to say the housing association had advised them that we would need a £23,000 deposit. I asked if this was in addition to the 10% for the mortgage company. I have been advised that because there have been improvements made to the property these will not be included for a mortgage valuation on shared ownership only the value of the property prior to improvements there for we would need to find the difference.

The property is for sale at £118,000 for a 40% share but they say we wold only get a mortgage on app £100,000 so we would need to find £18,000 plus our 10% deposit. The mortgage broker said he had never heard such a thing and would loo into it so we wait to hear. I think I can raise around £16,000 to £19,000 depending on the final redundancy payment but £23,000 may well be too much.

I have a budget but it is for living here so I am going to go through the SOA to work out affordability but The broker estimated mortgage payment to be £600.00 a month plus £270.00 rent and a £5.60 service charge so if we can proceed it would cost less than the rent for our current home and the bills would be lower as it is a semi and half the size.

I will let you know what the mortgage broker advises tomorrow.
Many thanks
Lizzy

Hi GrandOiseau
The reason I asked if we would stand a chance is in part due to our age and secondly as we have just finished paying of the last of our credit card debt
Many thanks
Lizzy

[GrandOiseau]

Well age is a limiting factor of course but being debt free isn't.

[lizzydripin]

Hi Mel

I have checked my credit score on Noodle and it is 4 out of 5 OH's is 5 out of 5

Please can you let me know the implications of this

Many thanks
Lizzy

[lizzydripin]

This is a copy of my SOA if we were successful in buying the little house we are looking at
Many thanks
Lizzy

Household Information
Number of adults in household........... 2
Number of children in household......... 1
Number of cars owned.................... 2

Monthly Income Details
Monthly income after tax................ 2916.7
Partners monthly income after tax....... 1536.98
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 4453.68

Monthly Expense Details
Mortgage................................ 660
Secured/HP loan repayments.............. 0
Rent.................................... 270
Management charge (leasehold property).. 5.6
Council tax............................. 107
Electricity............................. 54
Gas..................................... 60
Oil..................................... 0
Water rates............................. 44
Telephone (land line)................... 20
Mobile phone............................ 77
TV Licence.............................. 0
Satellite/Cable TV...................... 0
Internet Services....................... 35.5
Groceries etc. ......................... 600
Clothing................................ 40
Petrol/diesel........................... 60
Road tax................................ 25
Car Insurance........................... 35
Car maintenance (including MOT)......... 45
Car parking............................. 0
Other travel............................ 20
Childcare/nursery....................... 0
Other child related expenses............ 50
Medical (prescriptions, dentist etc).... 5
Pet insurance/vet bills................. 43
Buildings insurance..................... 0
Contents insurance...................... 17
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 50
Haircuts................................ 10
Entertainment........................... 20
Holiday................................. 25
Emergency fund.......................... 20
National trust membership............... 10
Audiable................................ 8
Auto desk............................... 2.5
Magazine................................ 7.5
lottery................................. 20
Pet food................................ 60
Total monthly expenses.................. 2506.1


Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 15000
Other assets............................ 500<b>
Total Assets............................ 15500


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 100000...(660)......2.9
Total secured & HP debts...... 100000....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Total unsecured debts..........0.........0.........-


Monthly Budget Summary
Total monthly income.................... 4,453.68
Expenses (including HP & secured debts). 2,506.1
Available for debt repayments........... 1,947.58
Monthly UNsecured debt repayments....... 0<b>
Amount left after debt repayments....... 1,947.58

Personal Balance Sheet Summary
Total assets (things you own)........... 15,500
Total HP & Secured debt................. -100,000
Total Unsecured debt.................... -0
Net Assets.............................. -84,500

Created using the SOA calculator at http://www.stoozing.com.