First House - Mortgages etc..?

Phil,

I posted this in another thread but I think it maybe useful to you. I have a mortgage for 100k and below is a breakdown on my monthly repayments.

Mortgage: £668
Council Tax: £115
BT Line Rental: £18
Internet: £8
Food: £250
Tv License: £27
Mobile Phone Subscriptions: £43
Gym Subscriptions: £71
Petrol: £70
Life Insurance: £17
Home Insurance: £32
Water: £15
Gas: £30
Electricity : £30
Car: £200
Car Insurance: £58

Works out in total £1,652 a month. You may want to adjust the figures for your own circumstances. Also bear in mind you will have to pay all the fees out of your 20k which will probably cut about 4k out of it.
 
Rotty said:
I would imagine you will find it tricky to borrow over £100k

traditionally 3+1 x earnings ( or 2.5x joint ) were normal maximums, this would give you £70-80k, in recent years you may well have found someone to lend you a lot more but it is tricky now
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True but there are still mortgage deals out there. Speak to a mortgage advisor, get a mortgage agreed in principle before looking at properties (otherwise estate agents and sellers won't take you seriously), then make sure you act fast once you put an offer in that's accepted.
 
I bought my house just over 18 months ago - luckily managed to get in on 4.1% which is fixed for another 18 months..

I'm paying £627.22 / month on a mortgage of £115,000. Purchase price was £135,000 but I managed to put down a £20,000 deposit (well worth it imho)

On top of that as msm722 stated there's absolutely loads of other bills to be accounted for...

Effectively I'm paying out £1300 / month and I wont lie it's not easy - but once you get used to seeing that amount of money leave your account you dont miss it!

As someone mentioned above - make sure you have the option to overpay if you want to!

Also, and this is something that I've never understood....don't include the fees within your mortgage! Even though its a pittance over the full term - when some fees can reach upto £5,000 and thats not including any early redemption penalties - i fail to see the benefit in the long run although someone more in tune may tell me otherwise!

Anyways, good luck with your window shopping....

Tom
 
Phil W said:
I don't have a bad credit history at all :)

I'm just window shopping at the moment, it will be interesting to see if house prices drop further, i certainly wouldn't punch above my weight in terms of repayments etc just to have a newer/bigger/more expensive house :)
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where are you looking to buy??
 
Give Catalyst a call regarding the First Time Buyer Initiative. It used to be restricted to certain developments (it was when I got on the scheme), but my sister and her partner got accepted on the scheme and were able to choose any house.

http://www.chg.org.uk/homes/ftbi.html
 
We are currently renting.

We sold our house 5 months ago, made a very good profit from it. It would be roughly a 45% deposit once we buy again but at present we can make more money with it sat there gaining interest than buying another house and having to pay £100+ more on the mortgage than we do on rent.

I know some of you will probably say renting is dead money but at the moment it seems that renting is the way to go, until at least this countries economy gets its act together.
 
Wiggins said:
We sold our house 5 months ago, made a very good profit from it. It would be roughly a 45% deposit once we buy again but at present we can make more money with it sat there gaining interest than buying another house and having to pay £100+ more on the mortgage than we do on rent.

I know some of you will probably say renting is dead money but at the moment it seems that renting is the way to go, until at least this countries economy gets its act together.
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Thats seems awfully close, Id happily pay £100 a month just for the benefit of doing exactly what I wanted in my house.

I currently rent a 4 bed detached house. I pay about half what a mortgage would be, clearly the rent I pay is way less than even the mortgage interest. There is no way my rent is currently dead money :D
 
As well as brokers, have a chat with your bank, especially in the current climate. You've got a decent sized deposit, no harm in asking around. If you're a graduate and bank with HSBC, there are still some cracking deals available through them :)
 
Jonnycoupe said:
Thats seems awfully close, Id happily pay £100 a month just for the benefit of doing exactly what I wanted in my house.

I currently rent a 4 bed detached house. I pay about half what a mortgage would be, clearly the rent I pay is way less than even the mortgage interest. There is no way my rent is currently dead money :D
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I think, as with all things housewise, that it totally depends on your circumstances...

As above, selling and making a large profit, which can be ploughed into another property when the poster sees fit may be good in one situation, but not in another...

Wiggins' is in a strong position and I would imagine and he's happy with his money sitting there making a bit of interest!

I've got an acquaintance, however, who owes a fair amount of money to the bank at a high rate of interest and he's happy for his money to be making less than the interest he's incurring... now thats dead money....

Its totally dependant upon the sitch! :)
 
Jonnycoupe said:
Thats seems awfully close, Id happily pay £100 a month just for the benefit of doing exactly what I wanted in my house.

I currently rent a 4 bed detached house. I pay about half what a mortgage would be, clearly the rent I pay is way less than even the mortgage interest. There is no way my rent is currently dead money :D
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I agree, it is only £100 a month but after the years of sweat and money I put into our previous house, the extra £100 a month + interest from profit from house, it makes sense to us.

We were lucky to find a landlord who bought the house outright before it was even built so he has no mortgage to pay with our rent, its pocket money for him so he is able to offer a better deal on the rent.

If I was to crunch all the numbers, we would in fact be paying more than £100 a month on a mortgage + fees + building insurance + maintanence.

Edit: I did speak to our next door neighbours who actually own their home and is identical in size and shape to ours (terrace) and they pay £150 more than we do with their mortgage. Says it all tbh.
 
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I think you are mad even contemplating buying now - wait a year, we might have some sort of crash or at least price reduction!
 
COnsider a 30 year mortgage as well to bring the payments down a little. But you should look to bring the mortgage term down as quickly as possible once you're finances are sorted out.
 
And you would be willing to gamble it?

Every sign here in the city is that we are facing a serious slow down, to suggest otherwise is frankly malicious to a poster like this.
 
Class 04 said:
And you would be willing to gamble it?

Every sign here in the city is that we are facing a serious slow down, to suggest otherwise is frankly malicious to a poster like this.
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Me personally yes. Negative equity doesn't frighten me. I would be looking at moving for a while, job is ultra secure.

People have been predicting a crash for years. Since then people have lost so much money by not buying.

It's a personal thing and different situations require different things.
 
I Agree people have been predicting it for years, but I've not been too worried by it because there were any serious indicators. now, however, we might be on the cusp of a recission of 1929 proportions - yes, a depression!

Even if we are not, someone who is really stretched like this buyer would actually benefit from the gamble that it will go down.
 
I don't think their first concern is making profit when buying a house, atleast, it wasn't for me. A home is somewhere to live first and foremost. Given that most first time buyers live in their first homes for many years, I doubt they would loose any money. I bought my house for £185k in November last year, it's now worth £225k
 
Class 04 said:
Even if we are not, someone who is really stretched like this buyer would actually benefit from the gamble that it will go down.
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Yep I certainly wouldn't stretch myself at the moment, which is why I'm still not buying.

But there's no reason he couldn't get a smaller property for a lot cheaper.
 
Class 04 said:
And you would be willing to gamble it?

Every sign here in the city is that we are facing a serious slow down, to suggest otherwise is frankly malicious to a poster like this.
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Do you buy a home to make money or to live in? In the longer term, prices will nearly always rise anyway, it's just a case of being able to handle the negative equity (should it occur) which is only a problem if you're going to be forced to move.
 
See above, I say the down gamble is worth it for a really stretched buyer. Because its much less of a gamble than hoping it won't go down! :)
 
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