I have lived in Wanstead all my life, and an ‘affordable’ development raised my hopes. Since graduating from art college in 2009, despite being on a lowish salary of £ 20,000 as a trainee teaching assistant, I have been able to stay home rent-free, saving me a total of £ 35,000 Have been successful. By the end of June, when I graduate from teacher training, I will move on to a salary of £ 24,000, which will go up to £ 30,000 after one year.
I have lived in Wanstead all my life and have never considered that I could afford to buy here, but recently read that bedroom flats will be built near the pocket living 201-Wanstead station. The price of the apartments will be £ 245,000 in an area where flats are generally priced above £ 300,000. I fit Pocket Living’s eligibility criteria to purchase as I will be a first-time buyer and I already both live and work in the borough.
Sadly, because my salary will be £ 24,000, the most massive mortgage I can get – if I borrowed my salary five times – would be £ 180,000. I am unsure of what to do for the future. If I don’t buy now, I will continue saving – perhaps more than now, after my salary increase – because my mother has no intention of moving or charging me rent. But I think that for every year I will save the flat prices will increase and I will be playing the catch forever until I buy out an equity loan to seek out help, but I do not know if it is a good idea. I have no desire to buy either to live or to another part of London, and I want to buy it alone. I understand that I am striving for the impossible, but would be grateful for any advice or insight.
You are right that as a first-time buyer and resident of – and worker in – the borough where you want to live, you are eligible to buy one of Pocket Living’s affordable homes that are at least 20% below market value. Are sold for less. You are also suitable because what you earn is a “nominal salary,” one that is lower than the Mayor of London’s threshold for affordable housing (currently referred to as £ 90,000 per house). People with incomes above that level need not apply, nor should you bother if you already own property or want to sub-let.
However, you are also correct in thinking that along with your salary, you need the size of the mortgage, which means that you are not even likely to pass the pocket living ability assessment. Even with your £ 35,000 of savings, you have a mortgage of £ 280,000 which is more than £ 100,000, a £ 100,000 mortgage that you think you might be able to get would be required. To be able to buy one of the bedroom flats that Gardner will be on offer at E11 (which I think Pocket Living Development you are referring to), your only option would be to use the London equity help loan Buy. A £ 100,000 loan would represent just over 37% of the value of the property to buy, which is within the limit set by London help of only 60% (the limit elsewhere in England is 20% of the purchase price). More information about Pocket Living’s affordable housing development across the capital is available at www.pocketliving.com.
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