First Time Home Buyer Advice/Tips

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Hi Everyone,

The gf and i are looking into getting our first home. Basically where the hell do i start? lol.

We have around £14k deposit and are looking at houses around the £140k mark. What's the normal procedure do people offer on a house first and then look into mortgages or is there away to get a mortgage agreed in principal with a lender?

The gf is just due to start a new job so not sure how this will effect us? Ive been in my current job for 6 years and should soon be getting a payrise although i have applied for a new job which pays better again (To early to speculate on that one though). Overall we have a joint income of £41k which should soon rise to £43.5k (Possibly £45k with a new job).

Outgoings wise we both have car loans of £130 per month although we would ditch one car and clear the loan on it as well as hopefully pay of the bulk of the other loan. Other than that we both have a £30 a month phone contract and no other debts at all.

Were interested in house weve seen advertised. 3 bed detached, prob 15-20 years old. What sort of gas/electricity bills etc would people expect to receive on such a property?

Sorry if this is quite a random and babbling post. Im just trying to give a good insight on our situation and see what peoples general thoughts are on if were being realistic etc. Weve also been together for about 7-8 years and been on countless holidays together so were fairly confident it will work well which is why we'd prefer to buy rather than rent.

Thanks,

Russ
 
You will pay through the nose with only a 10% deposit but affordability wise you are all good.

Banks will typically lend 4.5 incomes but will take into account ongoing financial commitments.
 
If I were you I'd lose my debts now and save a bit more before buying, or look at cheaper places. 10% deposit is enough to get you a mortgage but with 20%+ you won't wince every time you look at the rate.
 
Ive been looking at the rates and see what you mean about the difference between 10%, 15% and 20% deposit. However any extra we can save in the mean time will need to go towards furniture, washing machines etc....the boring stuff! :(

Main argument i can see were going to have is she'll want to keep her sensible, cheap but boring 1.6 Astra...where as im going to want to keep the TT. lol

Wow...£139 a month cheaper purely based on halifax's rates (Thats just APR difference). Knocking the mortgage down on the extra deposit brings payments down by £250ish a month.

Savings another £14k wont come anytime soon though. Cant realistically see us being able to save £1400 a month between us.
 
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This whole 10% not enough is ********.

I have 10% deposit saved, mortgage of 150k I'd be looking at 4.9% 15% it would drop to 3.9%

10% is fine and not nearly as scary as some make out. Naturally not the best rate, but 20% is just not achievable for most in a reasonable timeframe.
 
We're in a similar situation at the moment and spoke to a financial advisor who gave us a bit of an insight into mortgages etc. The difference between 10% 15% and 20% was actually quite a bit, he also mentioned to us that the mortgages repayments and interest rates do not really change until you reach the next 5% bracket. so if you have 19% you would still be on a 15% rate.

If you go on money saving expert there's a big free guide that you can download that gives a lot of information and also suggests some decent mortgage brokers to speak to. :)
 
Its often difficult to get a mortgage when someone hasbeen in a job less than 3 months, some lenders even like 12 months so that you get the statuatory protection.

I am not sure if they still do but Halifax used to offer a mortgage in principle, you spend 30 mins going through finances and they give you a certificate that shows you in principle can get £xxx mortgage with them.
Obviously lying at that time may get you a higher amount but you wont be able to get it when you actually apply there or elsewhere.

Outstanding loans will be deducted from your wages before the multiplier is applied. eg say you pay £100 per month and have a salary of £20k, they will reduce your salary to £18800 (20000-1200) then apply the multiplier. So having outstanding loans can really hurt your ability to borrow.

My guess for utilities for 2 would be circa 50-60 per month assuming you heat it well and shower/bath daily but its very hard to tell as a lot depends on how warm you like it, how good the insulation etc is
 
A mortgage of £250,000 over 25 years at 3.9% is £650,621.93
A mortgage of £250,000 over 25 years at 4.9% is £826,660.55

Assuming you never pay....?

£395,856 at 3.9%
£439,017 at 4.9%

While still a difference its no way to the magnitude stated.

/edit if all full monthly payments made.
 
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