I am currently renting, the rent is killing me being stuck work-wise between Surrey and London. A reasonably modest 3 bed sets me back 1550 + council tax.
My job is somewhat specialised, I get well paid (top percentile) for long hours but of course taxed a lot as well.
Until 5-6 years ago I had spent most of my working life abroad then came back to work for a friend, at the time I had a reasonable deposit (about 90k) that then disappeared .. the company didn't work out and my somewhat nominal salary over the 2 years left my saving severely depleted.
Of course i had no UK credit history either.... still this was before the crash....
Anyway, 4 years ago I found myself expecting a new addition to the family.
This rather unfortunately co-incided with the company folding and me being unemployed for 4-5 months. Having savings and living with my expectant GF on waitresses wages I couldn't claim HB or Income support so I ended up burning most of my savings.... before I got a reasonably well paid job.
I did that for a couple of years, baby born etc.
We saved up and then 2 years later we had a bit of a shock and 2 yr old was in hospital (very seriously ill) for a long time. This pretty much levelled our savings again. Since we had to move house and again lost savings.....
Meanwhile I took out a credit card and loan.
Credit card has been paid in full every month for a year now (about 3k/mo as I put work expenses through it), loan has been paid in full every month and has 5 mo left to run at £450/mo.
Hopefully that will give me some credit history.
We are now looking to buy, OH can't work for another year (economically with childcare costs) as it would cost more than she could earn.
I have some savings but barely enough for a 10% deposit and that would leave me NO safety net at all.
I figure I can afford £1,289/mo. Which is £200,000 @ 5%.
We are currently paying £1550 in rent.
I once co-owned a house (15yrs ago before divorce) am I a first time buyer? Does this make any difference?
Now the strange part
My brother has a spare several million he doesn't mind risking.
He has offered to help me get a house... however he worked damned hard for his money and I don't expect a free handout. But he has offered to front me money on Dad's home before I inherit and a top up.
He owns his own houses outright and has no significant monthly outgoings.
Where we are living (Woking) we can get a small 3 bed for £350,000 (I really need an office/spare bedroom for work as I both work from home and work very unsocial hours) but we can get a really nice 3 bed with garden etc. and room for child to play for £450,000
He hasn't a lot of time... he wants me to bring answers... I have little time myself... I usually work 12+ hrs/d. (My salary might sound great but it doesn't work out anything like you might think on an hourly rate after tax) He will have some people take care of the necessary paperwork once I decide what to do....
My main questions are:
1) Is it worth getting a mortgage or ask my brother to lend me and pay him back...
2) We discussed me getting a mortgage I can cope with and him providing a deposit... he wasn't phased by providing a deposit of £225k making a 50% on a £450k house. Will this get me a better mortgage?
He can't just give me the money, I couldn't afford to pay the tax on it! So I presume it would be a joint ownership?
I'm totally OK with it being 100% in his name ?
3) If we walk into a building society having shopped about and tell them I have my brother happy to lay down a 50% deposit will that be a positive or negative?
4) Price comparison sites seem pointless. Why would an estimate for a 50% mortgage on £450k offer me an incentive of a £500 cashback but charge me £500 for the mortgage fee? (Do they presume I can't read).
I'm presuming a 50% LTV should be getting the best rates?
5) Will getting a mortgage reduce my negotiating power for hammering a better deal on a house price vs cash buy?
My job is somewhat specialised, I get well paid (top percentile) for long hours but of course taxed a lot as well.
Until 5-6 years ago I had spent most of my working life abroad then came back to work for a friend, at the time I had a reasonable deposit (about 90k) that then disappeared .. the company didn't work out and my somewhat nominal salary over the 2 years left my saving severely depleted.
Of course i had no UK credit history either.... still this was before the crash....
Anyway, 4 years ago I found myself expecting a new addition to the family.
This rather unfortunately co-incided with the company folding and me being unemployed for 4-5 months. Having savings and living with my expectant GF on waitresses wages I couldn't claim HB or Income support so I ended up burning most of my savings.... before I got a reasonably well paid job.
I did that for a couple of years, baby born etc.
We saved up and then 2 years later we had a bit of a shock and 2 yr old was in hospital (very seriously ill) for a long time. This pretty much levelled our savings again. Since we had to move house and again lost savings.....
Meanwhile I took out a credit card and loan.
Credit card has been paid in full every month for a year now (about 3k/mo as I put work expenses through it), loan has been paid in full every month and has 5 mo left to run at £450/mo.
Hopefully that will give me some credit history.
We are now looking to buy, OH can't work for another year (economically with childcare costs) as it would cost more than she could earn.
I have some savings but barely enough for a 10% deposit and that would leave me NO safety net at all.
I figure I can afford £1,289/mo. Which is £200,000 @ 5%.
We are currently paying £1550 in rent.
I once co-owned a house (15yrs ago before divorce) am I a first time buyer? Does this make any difference?
Now the strange part
My brother has a spare several million he doesn't mind risking.
He has offered to help me get a house... however he worked damned hard for his money and I don't expect a free handout. But he has offered to front me money on Dad's home before I inherit and a top up.
He owns his own houses outright and has no significant monthly outgoings.
Where we are living (Woking) we can get a small 3 bed for £350,000 (I really need an office/spare bedroom for work as I both work from home and work very unsocial hours) but we can get a really nice 3 bed with garden etc. and room for child to play for £450,000
He hasn't a lot of time... he wants me to bring answers... I have little time myself... I usually work 12+ hrs/d. (My salary might sound great but it doesn't work out anything like you might think on an hourly rate after tax) He will have some people take care of the necessary paperwork once I decide what to do....
My main questions are:
1) Is it worth getting a mortgage or ask my brother to lend me and pay him back...
2) We discussed me getting a mortgage I can cope with and him providing a deposit... he wasn't phased by providing a deposit of £225k making a 50% on a £450k house. Will this get me a better mortgage?
He can't just give me the money, I couldn't afford to pay the tax on it! So I presume it would be a joint ownership?
I'm totally OK with it being 100% in his name ?
3) If we walk into a building society having shopped about and tell them I have my brother happy to lay down a 50% deposit will that be a positive or negative?
4) Price comparison sites seem pointless. Why would an estimate for a 50% mortgage on £450k offer me an incentive of a £500 cashback but charge me £500 for the mortgage fee? (Do they presume I can't read).
I'm presuming a 50% LTV should be getting the best rates?
5) Will getting a mortgage reduce my negotiating power for hammering a better deal on a house price vs cash buy?