Having convinced myself that there is no point of paying someone's else mortgage I started looking at ways for buying my own place.
I'm 26, non-UK resident. My salary is £50,000 and I don't have to repay a student loan or have any personal debts. In my savings account I have roughly £17,000.
As of march 2011 the UK government has been pushing an equity-loan, a governmental scheme targeted at first-time buyers with household income under £60,000, where a house builder can lend you a 5-year interest free loan worth up to 30% of the property value thus leaving the rest 70% for you to finance.
I've been looking at 2-3 bedroom properties in East London worth about £450,000 with the idea that I could rent out one of the rooms and help myself with the mortgage repayments.
Am I too naive to think that I could find a mortgage of £300,000 and that I would be able to put aside £25,000 a year to repay the interest free equity-loan? Or is this something normal that most people in the UK, or should I say in London, have to go through when buying a house?
I would appreciate other people's opinions as I don't really have any experience in this. Thanks.