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Our property investment expert is Jeni Browne, Sales Director at
Mortgages for Business
www.mortgagesforbusiness.co.uk/
Tel: 0345 345 6788
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Question
Help to buy for armed forces couple
I am a member of armed forces and I would very much like to buy my own home. I am based in Portsmouth and I hope to buy with my boyfriend, who is also in the Navy.
We are looking for a property near our base but we are really struggling to find affordable properties as we only have a small deposit -£15k – which appears to be only enough to put down 5% on a shoebox.
Do you have any advice on how we can proceed? I plan, in a couple of years, to transfer my skills into a civilian role so we really need somewhere we can live when I resettle.
Answer
I’m assuming you’re keen to buy imminently, rather than waiting to increase your deposit? If so, looking at a shared ownership scheme may help get you on the ladder, then hopefully, you’ll get more than a shoebox!
I believe there are schemes specifically for those in the armed forces, so I’d recommend looking into that (it’s also something we can help with).
If you can wait a little longer, then it may be worth looking at the government’s Help to Buy ISA as a way of topping up your deposit. Good luck!
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Question
First-time buyer: Is it worth getting a survey?
I am buying my first ever house and it’s both exciting and terrifying in equal measure. One of the terrifying parts is the fact I am really worried the house is going to have a problem which will cost me thousands of pounds (I don’t have) to rectify.
It’s a Victorian terrace, although it appears well maintained on viewing.
My estate agent told me the mortgage lender will commission a survey and this will highlight any major problems but I have also heard this doesn’t cover everything and I should pay for a more detailed survey myself.
What do most people do – especially first-time buyers? And is it really worth my while getting a survey if the lender is doing one anyway?
Answer
There are three types of survey: a basic mortgage valuation, homebuyers report and a structural survey.
The mortgage valuation is what your lender will instruct automatically. All this confirms that the property is worth what you’re paying for it and that, structurally, it looks sound.
A more detailed homebuyers report costs more than a valuation (some lenders do valuations for free). I believe they start at around £400, but it depends on the size of the property.
A full structural survey is the most comprehensive of the three and also the most expensive. Unlike a valuation and homebuyers, the surveyor is accountable if they miss something fundamental, which causes problems down the line. These usually cost approximately £800.
In terms of whether it’s worth doing more than just the basic valuation, yes, it is. As it’s a period property, I would encourage you to consider a full structural survey, or at the very least a homebuyers. You will need to arrange this separately from the mortgage. I hope that helped!
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Question
Can we afford a mortgage on reduced salary?
I wondered if I could get some advice from you in regard to whether my husband and I would be eligible for a mortgage. We have both been homeowners before – in our previous relationships. As such we have joint savings worth nearly £80,000 which we could put down as a deposit.
We currently rent and completely lucked out in finding a property on which we pay only £900 a month. It’s three-bed and the two kids each have a room of their own.
Here’s the rub – I work part-time and my husband was made redundant in October last year. He’s found a job but it pays less than his previous job. So, our joint monthly salary is £2,800.
My husband has a redundancy pay out of £19,000 which we have sitting in our current account and could use towards repayment or to bump up the deposit.
We have seen a lovely family house worth £390k – can we afford a mortgage?
Answer
The way lenders calculate affordability varies, and in turn, the amount you can borrow also varies.
From the numbers you’ve given me, I’ve calculated a gross income of £33,600 per year, but of course, there are other things to consider (e.g. child care/maintenance costs, tax credits etc).
However, as a rough guide, most lenders will lend 4.5 times your annual income (again, this varies). Doing the maths, this could give you a mortgage of £151,200.
If either of you were to get a new, higher-paying job, then that income can be factored in straight away.
I’d recommend speaking to a mortgage broker to investigate your options based on a little more detail.
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Question
I am worried I cannot pay mortgage – what should I do?
Sorry to ask this question – I feel really embarrassed – but not sure who else to ask as I don’t want my family to worry. Basically, I have recently lost my job (Covid-related) and I am really struggling to find a job which pays as much and my savings are running down.
I am probably about two months away from being unable to afford to pay my mortgage. Is there anything I can do? Should I speak to my lender or is there another organisation which can help?
I have been applying for lots of jobs but I either don’t have enough experience because I was in a niche area before, or the roles are ‘menial’ and the employers are worried I’ll get bored because I am too over-qualified. It’s hopeless!
Answer
I’m so sorry that you’re having such a difficult time! I hope that you are successful in securing a new role soon.
You need to first speak to your lender – they should be keen to support you and make a temporary arrangement to ease the financial stress.
You should also speak to Citizens Advice, which will be able to advise of any state assistance you may be eligible for.
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