You sound like my parents... lol

(but some sound advice none the less :))

Now I know I am a miserable git, as this post will probably prove, but a quick search on Rightmove.com bought up over 40 pages of 3 bed properties in the Southampton area. I put in max price of 160k and they went down to 75K.

Now if your son in law has a good credit history and no loans there are lenders that would lend him between 3.75 and 5 x his income on a 100% loan to value basis. That is £112,500 - £150,000 so the jobs a good 'un, even better if someone lovely would give them a 5% deposit.

However I doubt if this is the main problem, because 150k is going to cost around a £1000 pm over 25 yrs and they are in their comfort zone of only paying £600 pm. Assuming your daughter doesn't work and he is on 30k pa he is probably only bringing home £1900 plus child tax credit & child allowance so things would be a struggle.

Most people now have some form of loan/outstanding credit card debt so this is taken off income reducing the amount that can be borrowed, which means they probably can't go for the higher priced properties and would have to live somewhere they don't really want to.

And now 'Miserable git mode'.

The thing is a 3 bedroom house is a sort of strange choice as a starter home. Someone has made the choice that children were more important than saving and buying a property. I would guess that when you started out you saved and took things a step at a time.

Mortgages are alot easier to get now than say 10 or 20 years ago, but people now want everything, all at the same time and feel left out if they don't get it.

Life is still about choices and prioritising, and your son in law and daughter made the choice to have children which is hampering them now. I'm sure you think your grandchildren are much more wonderful than any house. But if they still want that house then they are going to have to live where they don't want to live, buy a house that isn't perfect and struggle for a few years. And I think life will still be easier for them then it was for their parents so don't pity them too much.

May I suggest that you search www.housingcorp.gov.uk and seek out your Local Homebuy agent - there are some excellent deals to be found through Shared Ownership.
Northern Rock are not yet Homebuy Approved.

tezza:My daughter and son in law and 2 their children are finding it impossible to buy a reasonable 3 bed house in the Southampton area

Every day prices go up and it seems interest rates are going up , which should dampen house prices

They are renting a 3 bed house costing £600 permonth. Alas they have very little savings.

Is there any advice that could help them get started

My Son in law has a salary of just over £30K

Maybe shared ownership is an option? So you only pay for 75% of the property? (example) Just a suggestion. From my experience I have Northern Rock are the ones who lend you most. lending up to 125%. I am a FTB also so please dont take anything what i say as fact, just speaking from what I have experienced.

Hope you find something suitable :)

Hi Tezza

I'm based in Hedge End, I'm quite happy to talk things over with your family if you contact me.

Anyway, their options increase the more savings they have, but that is not to say they have no options. When I see FTBers in their situation I usually suggest they see if their parents (both sets) can 'top up' their savings to see if they can raise a 5% deposit. There is an advantage to getting a 5% deposit as the interest rate (as a rule of thumb) would be lower.

If that is not possible, then 100% mortgages are available (there are products for 99% and 97% as well) and with a £30,000 income and a £600 appx budget then there are a good few possibilities.

If they haven't got any savings to speak of, then it is possible to borrow more than 100% to cover extra costs.

Stamp Duty is a factor. If there is a degree of flexibility on area, they'll be able to get a 3 bed house for less than £125,000 and avoid stamp duty - I've got some customers buying a 3 bed place in Lordswood for £122,500. I realise this area won't suit everyone though. From there, stamp duty kicks in at 1% of the purchase price, so on £150,000 house that would be £1500.

Solicitors will probably be somewhere around £800 - £1000 locally, although i have a program for searching solicitors natioanlly as they are slightly cheaper 'up north'.

Hope that helps to start with.

Adrian

My daughter and son in law and 2 their children are finding it impossible to buy a reasonable 3 bed house in the Southampton area

Every day prices go up and it seems interest rates are going up , which should dampen house prices

They are renting a 3 bed house costing £600 permonth. Alas they have very little savings.

Is there any advice that could help them get started

My Son in law has a salary of just over £30K