Buying a first home.

andy2k

andy2k

andy2k

Associate
Joined
15 Jun 2005
Posts
610
Location
Swindon, UK
Ok, this is all very rough to start with but i'm just wondering about amounts to borrow for a first home.

Say for example i was earning 16 thousand pounds a year before tax. and on my own wanted to buy a house worth maybe 120 thousand pounds.

How much deposit would i need to pay at the time of purchase? And roughly how much would the morgage payments cost per month?

Just rough figures would be great as i have no idea at the moment.

Cheers Andy.
 
andy2k said:
Ok, this is all very rough to start with but i'm just wondering about amounts to borrow for a first home.

Say for example i was earning 16 thousand pounds a year before tax. and on my own wanted to buy a house worth maybe 120 thousand pounds.

How much deposit would i need to pay at the time of purchase? And roughly how much would the morgage payments cost per month?

Just rough figures would be great as i have no idea at the moment.

Cheers Andy.
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depends over how many years and i don't think you'll be able to borrow enough to cover £120k. I think 5x the salary is the limit.
 
Work on a figure around 700 a month for a £120k capital repayment mortgage over 25 years.

You will probably need £40k deposit to get that on your salary at the very least :(

16k x5 + 40 = 120k
 
It's been well publicised for a good few years now house prices are way out of line with salaries.

Thinking you can afford a place on your own is very optimistic, most couples are struggling to get a mortgage.
 
andy2k said:
Does anyone seriously think that house prices will lower in the next 5 years by any decent amount?
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it's leveling off, but going down? I said there are more chance of Zefan becomes the Prime Minister. The housing market has in the past only gone up with the now and again blip/dip in price, and then it goes up again (even more agressively even).
 
andy2k said:
Ok, this is all very rough to start with but i'm just wondering about amounts to borrow for a first home.

Say for example i was earning 16 thousand pounds a year before tax. and on my own wanted to buy a house worth maybe 120 thousand pounds.

How much deposit would i need to pay at the time of purchase? And roughly how much would the morgage payments cost per month?

Just rough figures would be great as i have no idea at the moment.

Cheers Andy.
Click to expand...


The most I’ve been offered so far is 130k as a first time buyer (with 5% deposit) by my self and I’m on £30K a year
 
It cant keep going up, I mean £44k 10 year ago now £110k average.

Its a stupid jump.

We need more homes built and less buy to let its killing this country, I cant afford to move out on my own and I am 23.
 
Am in the process of buying my first gaff at the moment. Mortage, survey etc being done now.
I did the A+L online calculator and it said I could borrow £131K.
Went into the branch and they looked at my pay slips etc said I could have £178K so the online thing is carp basically!
I was like "WTF?? How the fudge could I pay that back??"
They said "You could afford it but you would literally have no life!!"
Good advice from them!!
 
The_blue said:
sell your old house, 47k to put down when i moved :)
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the OP is buying his 1st home though, thus no house to sell...


i'm in the same boat, earning 28.5k, just graduated but could never afford to get a mortgage for any decent place. i'm paying rent of 600/month and it's just going down the drain :mad:


the housing market crashed before, and with the situation at the minute you can be sure it'll crash again. they cannot continue to rise, it's just insane. what about the next generation of house buyers, how on earth will they be able to afford homes?
 
nealw said:
i'm in the same boat, earning 28.5k, just graduated but could never afford to get a mortgage for any decent place. i'm paying rent of 600/month and it's just going down the drain :mad:
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Just graduated and earning almost £30k a month, you're not exactly hard done by are you? Chin Up
 
Exactly. The couples having children now, sure as hell won't have any savings to help their children scrape together the deposits, as they are struggling to meet their own mortgage repayments. The current housing market is driven purely by short term targets placed on mortgage salesmen - we are guaranteed a massive crash within 15 years.
 
Raymond Lin said:
it's leveling off, but going down? I said there are more chance of Zefan becomes the Prime Minister.
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starting to rise again in a lot of areas , a lot of forecasts have put the projected rise at 10% for the next year
 
beamer said:
The current housing market is driven purely by short term targets placed on mortgage salesmen - we are guaranteed a massive crash within 15 years.
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i agree

makes me wonder whether to play the game and keep on renting for a few more years and tread water to see what happens to the market, or bite the bullet and buy a cheap place only to see interest rates rise making the mortgage unaffordable and see myself going bankrupt....
 
nealw said:
the housing market crashed before, and with the situation at the minute you can be sure it'll crash again. they cannot continue to rise, it's just insane.
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They said that 2 years ago, just as I was about to buy my first place. Been here 2 years next month, currently looking for another property to buy to let.
 
Round here, a small 3 bed house is around 250k. I am lucky enough to own a 2 bed house, but that came at a pretty painful price.
 
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