How do you do it?

D4VE · 17 Mar 2006 at 14:47

Teledude said:
My girlfriend went through a mortgage broker and got £175k and shes earning under 30k - its possible And before you ask I dont know any more details although if your interested in possibilites I shall look into it..

Jeepers she must be skint!

Teledude · 17 Mar 2006 at 14:47

D4VE said:
Jeepers she must be skint!

How so?

Mortgage payments are fixed at 660...

Haircut · 17 Mar 2006 at 14:52

Teledude said:
How so?

Mortgage payments are fixed at 660...

That seems almost too good to be true, if i could get a £175K mortgage with £660pcm payments I'd be all over it.

Jez · 17 Mar 2006 at 14:55

The term will be absolutely huge. Not sure i would want to take on a mortgage that large alone

Desmo · 17 Mar 2006 at 14:59

Jez said:
I certainly cant see how, unless i was given a load of cash to put down as a deposit and earned a very high salary for my age.

Lets take a flat @ £200k, maybe get it for £190k if you are lucky with lots of negotiation.

I have around £10k in my bank which has taken me about 1.5 years to save (i spend a lot on luxuries which i could cut back too).

I could save up another 9k in order to have my 10% depostit, but then i still have around £170k left to find. Going on most lenders limits of around 4x then i need to be earning £42,500 just to get approved.

Not easy

Obviously area plays a massive part. I'm not talking about £200k flats. My house was £108K when I bought it and I was earning approx £25K at the time. I moved in and bought the place on my own with a 10% deposit.

Dutch Guy · 17 Mar 2006 at 15:00

Haircut said:
That seems almost too good to be true, if i could get a £175K mortgage with £660pcm payments I'd be all over it.

That comes to 3.77% interest rate (if it is only interest payments)

Jez · 17 Mar 2006 at 15:01

If i could find anywhere for £108k then i'd buy it tomorrow, sadly even one bed flats go for double that these days unless i go somewhere really grotty

bandit · 17 Mar 2006 at 15:04

search www.nethouseprices.com

you can see completion prices and dates for houses, which means you know the real price as opposed to the asking price.

is greeat for offers and revaluations.

Garrett · 17 Mar 2006 at 15:09

Jez said:
If i could find anywhere for £108k then i'd buy it tomorrow, sadly even one bed flats go for double that these days unless i go somewhere really grotty

You could try searching around for shared/part ownership schemes in your area, where you buy 50% or more of the property and the council or housing associate own the rest. Good way of getting on the housing ladder, this is what my sister did.

Link Newbury Properties Some of these seem ok for a first time buy to me? The first few are shared ownership.

D4VE · 17 Mar 2006 at 15:14

Teledude said:
How so?

Mortgage payments are fixed at 660...

over 35 years?

Teledude · 17 Mar 2006 at 15:21

D4VE said:
over 35 years?

No idea tbh - she sorted it all out!!!

D4VE · 17 Mar 2006 at 15:38

corkin.

Im not really frowning on her choice, its just me and my bro took out a smaller mortgage but earn quite a lot more (combined) and arent exactly rolling in spare money.

But we arent really skint either, so its nice.

Good luck to her, anyway, its money well spent! (althought spent isnt really the right term)

!bluetonic! · 17 Mar 2006 at 15:41

I live an a 3 bed end terrace house. Nice area. 2 car drive. I couldn't have done it without my parents help. (I'm 26).

I was happy living at home, but realised I had to move out sooner or later. I looked in shared ownerships. I chatted with my bank manager. Left those options there.

In the end my parents coughed up the deposit. I just about covered the legal fees and stamp duty. My gf bought furniture and paint. I really didn't want to get housemates as I'd had enough of that at uni. Now we own our own house (via a mortgage).

With all bills and debts to pay, I have about £150 left at the end of each month. Due to distance from the exchange, my BB connection is limited to 512kb :eek:

(It was 2MB at my parents..)

Plan your finances. Even if it's a 5 - 10 year plan. Focus on what you want and where you're prepared to compromise. Watch relocation, relocation and other housey type programs to see how they get the best deal.

Stay focused!!

Desmo · 17 Mar 2006 at 15:44

!bluetonic! said:
With all bills and debts to pay, I have about £150 left at the end of each month.

I hope for your sake nothing breaks :/

D4VE · 17 Mar 2006 at 15:46

yeah I dont have much more than that left, but my dad had virtually nothing when he got his first house.

A monthly budget including all forseeable expenses is absolutely essential before you move out for the first time.
This includes food, going out, clothing, petrol, bills, roadtax, holidays, etc everything you can think of.

Somethings will end up cheaper, something will end up more expensive. But if you dont do a budget you could be in trouble a few months down the line...

#Chri5# · 17 Mar 2006 at 16:01

Desmo said:
Obviously area plays a massive part. I'm not talking about £200k flats. My house was £108K when I bought it and I was earning approx £25K at the time. I moved in and bought the place on my own with a 10% deposit.

Indeed, it is possible. Both myself and my girlfriend have bought our houses on our own (before we met).

A monthly budget including all forseeable expenses is absolutely essential before you move out for the first time.
This includes food, going out, clothing, petrol, bills, roadtax, holidays, etc everything you can think of.

Somethings will end up cheaper, something will end up more expensive. But if you dont do a budget you could be in trouble a few months down the line...

That's sound advice and it's something I still update every few months, even three years after moving in. I use MS Money for tracking day-to-day stuff but keep my Excel sheet going just to ensure I'm on top of things.