The Property Ladder - Part 1.
This post is regarding the dreaded ladder they call the "Property Ladder" and how becoming an adult just becomes more painful when trying to deal with these adulthood topics.
A few days ago the GF and I went to view a cute little two bed house under a Shared Ownership deal. It was lovely and exactly what we are looking for, something a bit bigger and more homely where we could live for almost ever (or until we need to upgrade).
Currently the GF is the breadwinner and owns the flat we live in which is under another Shared Ownership scheme, when viewing this new place the estate agent raised concern that because she is on the scheme we wont be able to join this scheme and the only way around it would be if I solely apply for the new property and she have nothing to do with it.
For me that is SCARY! Commitment and having my name on something takes away my freedom - but I am ready . . . I think I could be.
So I begin the mammoth task of applying for the house in the morning, which also needs to be handed in by end of play the same day to start the screening process the following morning - and looking back I am not sure how I kept it all together but I love a challenge. All this paperwork and hoops to jump through within less than a day while also being at work.
So I fill out ALL the paper work they give me, collect all the relevant forms, documents and pieces of info they need. Getting wages slips emailed to me, scanning passports and remembering to fill everything out in BLACK BLOCK CAPITALS.
The last thing I need is a M.I.P (Mortgage in Principle) which is cool, the mother-in-law passed me her mortgage advisors details and confidently said she will be able to get me that within a day. I call Lisa (the advisor) give her some basic details and she runs the numbers - things are looking good but to get the M.I.P she has a few forms for me to do.
Four emails later and she has sent me a buttload more forms - so I crack on with them.
Luckily most of them were the same as the application so I had it all to hand. This is when the stress kicked in. Lisa comes back to me with a few hiccups - my spend is too high, the lender wont accept me. So we toy and talk about getting around this - she suggests getting rid of the car. . . the new adult car I got 6 months ago? It's a no from me Lisa. I could say I am putting that in my GF's name and then I would qualify.
The Lenders are judging my income, out goings and rent on the other half of this property and even though it totals to £600 that is just over the lenders cut off. They are taking into consideration the GF will be living with me but because she can't apply we can't have her name on it and so can't count her wages. Comfortably we'd be able to pay everything and have plenty of spending money left the lender can't see it like.
Great! So time is ticking on and it's looking like we wont be able to get this M.I.P.
We then also face another problem - the deposit. We have that tied up in the GF's current property so when we sell this we can use that which is the normal plan for anyone moving. Oh no not this time round because she isn't involved and she isn't on the application they need to see proof we have a deposit right now and can't wait until the sale of the flat. Pushed for time I am scurrying around trying to find someone just to sign a document to say "They will gift me the money" - I don't even need the money to apply. This ballache is getting mad.
I get that signature and now its just the M.I.P - oh wait here comes that loop from earlier. Lisa says she can get an initial one but I NEED to move the car over. Which 1 - I don't want to do and 2 - is pain that will take longer than a day. Defeat is coming we can see it, the clock is ticking and this isn't looking good for us.
We take a step back and realise it isn't going to happen today. I can't get the M.I.P to finish the application for the house. GAME OVER!!
I am very proud of how much I actually did achieve in that short 10 hour period so that's a plus right?
The whole system is against us I swear.
The shared ownership scheme is set up by the government to help people slowly work there way up that ladder. It is so rigged it comes back against you, surely it would make sense to move from a 25% share flat to a 30% share house, we are building a profile but now we have been told there are associations that wont allow you to go from one to the other. So we have to continue to try and save a deposit which is just a huge ask for young people in this economical climate - a nice house in this area is say £220,000 - so we need 10% (5% if lucky) deposit which is £22,000 - say we get 10k from the flat sale we still need to save another £12,000 which feels so unrealistic. We don't live a lavish life - heck I used to live paycheck to paycheck because the cost of living keeps going up and the pay rate stays the same and being asked to save that amount of money isn't always a realistic goal for everyone. Being paid £100 five years ago went a lot further than it does now, how can anyone save that kind of money to get a deposit together. As a first time buyer Shared Ownership is great, it really did help her - it's just the next step (in our case) has made us fall out of all categories. Too much spend for S/O, too little deposit for a full mortgage & already a 'homeowner' so no Help to Buy.
It's baffling.
On the plus side I can get a mortgage so my credit is good - winner. So now it is back to the drawing board, we are checking with Lisa to see what kind of deal we could get if we both applied for a joint mortgage and then just looked about and started saving all we can. It's going to be a long road but I guess it's started. We are looking at the metaphorical ladder and just trying to work out the best way to start the climb.
You know what they say - this time next year I could be in the same place I am now.
- Wait that's not the saying is it?
Wish us luck.
To be continued . . . .
