2006-08-16 08:42:23 · 24 answers · asked by Anonymous in Business & Finance ➔ Personal Finance
apply for working tax credits.it supplements your low income
2006-08-16 08:49:41 · answer #1 · answered by Anonymous · 0⤊ 0⤋
When you say you're on minimum wages, I assume you are taking home 160 pounds per week (as minimum wage is something in the region of £5 per hour and most people work 40 hours per week). Your gross salary in this situation is approx £10,000 per year.
Most lenders will lend approximately 4 times your gross salary, and some will extend to 5. This gives you a maximum mortgage of £40,000 which won't buy anything in most parts of the country. In my area, the cheapest place I've seen is £60,000 and that was for a studio flat with a short lease.
On a 25 year mortgage, you pay roughly £6.20 per month for each thousand you're borrowing. On a £40,000 mortgage, that equates to £248 per month, which represents 35% of the minimum take home pay of £700 per month. On top of that, you'd need to be paying council tax and all the various insurances (e.g. buildings, contents, income protector, critical illness). If you're young, you could extend your mortgage to 30-40 years which will lower the repayment but it won't have much of an effect on the maximum figure the lender will lend.
Another option would be to get an interest only mortgage, but again that won't have much of an effect on the maximum the lender will lend.
In some areas, its possible to get on the property ladder through a part purchase part rent scheme, where you buy a certain amount of the property and rent the remainder. Costs will vary depending on the share, and it still might be out of your means.
2006-08-16 17:14:22 · answer #2 · answered by nemesis 5 · 0⤊ 0⤋
Sorry to say, you can't. But unfortunately, those on minimum wage get ripped off by having to pay mortgage rate rents. (high rent).
The only way that this might be possible is to contact Habitat For Humanity. You'd have to do sweat equity for the house in lieu of down payment, have a savings and checking account, and be able to show that you can make the payments, which are typically lower than most regular mortgages.
2006-08-16 16:02:17 · answer #3 · answered by Big Bear 7 · 0⤊ 0⤋
50 Year mortgages are now available in the UK which will keep your repayments down in the early years until you get a better paid job.
However taking in one or two lodgers is an excellent way to help pay all the house bills including the mortgage and is much better than buying a house in partnership with anyone else because you get rent towards the mortgage but you reap all the benefit of any increase in the property value.
If you do take in lodgers it is worth paying for landlord insurance which is about £20 a month,it just covers you if they fall down the stairs or something !
Good luck !
2006-08-16 16:00:14 · answer #4 · answered by any 4 · 0⤊ 0⤋
You have a lot of yeah and nay answers: Here goes..
1. Be wary of "creative financing" by mortgage companies.
2. Join forces with others if you can.
3. If you're really good at saving, buy a REIT fund (Real Estate Investment Trust) so that way you're at least participating in real estate appreciation and saving for a down payment at the same time!
2006-08-16 16:10:30 · answer #5 · answered by kcincon 3 · 0⤊ 0⤋
Depends on what the minimum wage is in your state. Really it's probably near impossible unless you are willing to make sacrifices (like the neighborhood/quality of house/amount of land that comes with house). You also need to factor in your down payment. The real question is can YOU afford to save up for the down payment?
2006-08-16 15:51:14 · answer #6 · answered by sonik_starz 4 · 0⤊ 0⤋
work about 3 jobs, have Ur partner doing the same, and save up till U have a good size down payment, so U need a smaller mortgage
2006-08-16 15:55:01 · answer #7 · answered by caprilover79 3 · 0⤊ 0⤋
A. you probably can't.
B. you probably won't qualify for a mortgage, which is a good thing since you can't afford the mortgage.
2006-08-16 22:59:52 · answer #8 · answered by christopherthomastierney 1 · 0⤊ 0⤋
You can buy half an house and then pay rent on the other half to the local authority. It is the only way some people can get on the property ladder. Its not the ideal way of doing it but at least its a start...
2006-08-16 15:48:24 · answer #9 · answered by AJay 3 · 0⤊ 0⤋
You could if you get a cheap deal and rented out rooms, but you'd risk losing the house if you missed a payment, and it would affect your tax. That would matter if you're a lone parent.
This is why housing association and council houses exist...
2006-08-16 15:49:51 · answer #10 · answered by sarah c 7 · 0⤊ 0⤋
Live in a really cheap area, don't set your standards too high, be willing to sacrifice all but the essentials, and get someone to share the costs.
2006-08-16 15:51:43 · answer #11 · answered by purple_duck_uk 2 · 0⤊ 0⤋