Buying a first home,

[aardvark]

Since when?

housing benefit - sound familiar.

 

[Samtheman1k]

I pay 220 pounds per month less for my flat than what I would have if I rented it. So I've gained money on the flat value (10k currently) and i'm saving 220 pounds per month. It was a no brainer for me to buy.

That completely depends on where you live. Personally I rent as it is cheaper and I don't have to pay for new roofs, decorating, boiler repairs and all that stuff which means i have more money spare for spending on other things, like travelling and also have much less stress. It just depends on what is important in life to you.

 

[chrislusty]

I am in the process of getting my first house with my fiancee, combined we bring home £30k, we have a mortgage of 125k and we put £7k down. we will be paying £670 per month for 2years.

We signed the contracts today, hopefuly completed by Friday or early next week.

I think you will struggle on your own, with only £1k in savings. you may be better at looking to rent, or house share with mates and rent that way. there is a lot to think about when purchasing a house. and lots of bills!!!

Interests rates are rising, but people in the know are not predicting a crash any time soon. they are trying to get house prices to level off, and not rise the way they have been.

 

[Skiddley]

moo

 

[sist_si]

I would say think about getting a place with a mate. I did that and we got 100% mortgage of £119k too. We pay around the £600 per month and rent a spare room out to another mate. It's easliy managable without his money tho.

I would recommend actually going into a bank and speaking to someone in person. They can usually work things out or at least give you a better idea. I got my mortgage through HSBC and the advisor even recommended steering clear of their own call centers and doing everything face to face.

Also, keep in mind you'll probably need about a grand for fees & surveys.

 

[andy2k]

http://www.rightmove.co.uk/viewdetails-12979324.rsp?pa_n=23&tr_t=buy


Sorry ive not been online for some time now, the link above is a property i am looking at.

And below is one I'd consider renting,

http://www.rightmove.co.uk/viewdetails-6089493.rsp?pa_n=10&tr_t=rent

I will be permenant staff on probation in 3 months at my work, and will be on around 24k+ then. Would mortagage companys be put off by this?

Would i be able to pay the mortage on that first property, or am i best off renting for a couple of years? If i rented i could save around £200 per month.

 

[Matt]

Not strictly true, he just needs to shop around. I only have a declared income of around what he is on and i have been offered £104,000 with direct line and natwest, i do have a larger than normal deposit though which they seemed to like. Repayments are less than £700per month on a standard term. Where he will fall down is the deposit though as you have said, generally i am getting tyhe indication that including legal fees im going to be down a grand or so at least before i have started, so he effectively has none. Its really not the income that is the problem (first national will lend 7x), its the deposit.

What would you say a 'good' deposit amount is? 10% of the property value is normal isn't it?

 

[Vonhelmet]

Rent for a while.

It sucks, but hey... that's the housing market...

Shame that renting is seen as such a second class option these days, yet also costs first class money.

 

[big_white_dog84]

Can't help with the multiplier, but Scottish Widows offer a 102% mortgage to graduates at decent rates IIRC.
I'm fortunate to be living in Scotland where many areas are still reasonably priced. I'm planning on buying in about a year with just a £5K deposit. I've found a crackin area with really good prices. It's next to a motorway junction, which is essential for my job, only 10 mins from Glasgow city centre, 45 mins to Edinburgh, 10-25 mins from all my companies offices etc etc. I can't believe the prices are so low given all the good things about it. Just hope not too many people discover this untapped goldmine within the next 12 months.
I'm renting at the moment, but I don't see it as wasted money because the £500 a month I am paying (split 2 ways) is << the £800pm it would cost for me to buy the same place. This is allowing me to live in a nice house while still having a good amount of disposable income.

 

[Jez]

What would you say a 'good' deposit amount is? 10% of the property value is normal isn't it?

The estate agents i have worked with havent really minded, but 10% is a good figure to work from. The reason i have taken the time to save a hefty deposit is because i am in no real rush (i have a house on a very cheap lease at the moment), am being very picky about what i buy, and wish to keep the borrowing to a minimum.

 

[Solari]

I'm crapping myself as I'll have to get on the ladder about April time. I don't want to run the risk of it getting out of my reach.

Fortunately I've been able to save a large chunk over the past 8 months so I have about 9K put away. Even by April though, I can't see myself having enough for 10% deposit plus stamp duty, scumbag's - er I mean, Solicitor's fees etc so I will be stuck with a higher interest rate.

I definitely want to get a house as I can't stand the idea of someone living above or below me. Also I like to have a garden for BBQs and parties etc

The rent a room idea sounds best as you can get about £400 a month which will pretty much chop a decent sized mortgage in half. However, I see a few problems:

- Getting someone in that you trust (pref. a friend)
- Loss of privacy (get someone that works nights?)

 

[Indy500]

Getting someone in that you trust (pref. a friend)
- Loss of privacy (get someone that works nights?)

Get references. As for loss of privacy, fit locks to bedrooms? Not perfect obviously but its a possible solution.

 

[Solari]

As for loss of privacy, fit locks to bedrooms? Not perfect obviously but its a possible solution.

I should have worded it it a bit differently really, but more than anything, I was thinking of being a tad red faced in the morning after those furious "bump in the night" sessions with the missus.

 

[Indy500]

I should have worded it it a bit differently really, but more than anything, I was thinking of being a tad red faced in the morning after those furious "bump in the night" sessions with the missus.

Haha, just go straight to the bathroom then...

 

[chrislusty]

The property you are looking to purchase is only 3times your income, so insurance companies should be ok with that, however depending on savings etc, if you have a 100% mortgage or 95%, interest rates are sometimes higher when you go for 100% mortgage.

Its a big step, as you will have lots of bills to pay too, gas/electric/water, phone, mobile, car, internet, council tax.

You can have mortgage over 35 years now, which will keep the monthly payments down, also try to get a fixed rate, as you will know how much you have to pay for mortgage for a fixed term, this helps when paying bills too and budgeting.

Good luck, I got my first house on December 15th with my fiancee, we havent moved in yet though, as we have had to clean house, and there are parts we want to change, such as bathroom.
Its all good fun

 

[Goatboy]

Just lie about your income and self cert it, as someone who works in the mortgage business you wouldn't believe some of the stuff we get in.

 

[Solari]

Just lie about your income and self cert it, as someone who works in the mortgage business you wouldn't believe some of the stuff we get in.

Aren't you setting yourself up for reposession though if you're overstretching yourself? Just look at the rate that utility bills etc are going up at

I'd like to think that the whole house pricing mess wouldn't have happened if the banks didn't lend so irresponsibly. I guess that in reality it'd just be the better off people buying to let that'd cash in though.