Mortgages

Leesey

Leesey

Leesey

Associate
Joined
7 Sep 2010
Posts
232
Hi all,

I'm looking at buying my first property and was after some help with regarding if I can afford what I'm looking for. I'm looking to buy a house of the value of 165,000 (3 bed detached with garage and off road parking) putting down a 15% deposit of 24,750. This would leave me with a decent amount in savings for decoration, stamp duty, legal fees, furniture and rainy day money.

Now I earn approximately £40,000 before tax as my base rate, but have enhancements, on call and overtime to go on top of this. My current out goings are approximately £300 (Car tax, insurance, gym, phone, petrol).

I've never lived away from my parents, so have no idea on real world costs when owning a property, and looking at a mortgage over a period of 30years. I don't want to skint my self. I know that there will be gas, water, electricity, council, insurance, tv, Internet to pay on top, but I'm pretty clueless here without having many friends who own their own property.

Any advise would be appreciated.
 
Tunney said:
You should be fine on that sort of wage.

Putting 25% of your take-home wage into the mortgage is usually considered very safe, with most people able to live comfortably putting in 33%. Just watch out when the rates rise. Could you still afford the repayments if the interest went up to 5%? 7%?
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I think so yes, with add on's to my wages I can earn an extra 7-14k per year. And fingers crossed there will be an extra income into the house in 2-3 years. All else fails, I can let out a room.
 
mattyg said:
You'll ace it mate on that. Provided you have a good score and no bad debts.

Were buying and the lenders are offering 4x, 4.5x and 5x income dependant on circumstances

I can put you in touch with a broker if you want. He comes highly recommended over at pistonheads.
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How do brokers work, do they find the best deal for you, or for themselves commission wise?
 
Derek W said:
Without fully knowing your situation, if its just yourself in there you've covered the basics (although gym membership seems a bit of a 'waste' as you could probably convert a bedroom into a home gym if need be and save a few quid). Outwith your deposit have you considered your start up costs e.g furnishing the place? I'm assuming there may be some furniture you can 'borrow' from your folks place but do you have additional funds to make a start to making the place your own? Think I started with a couple of grand to get the essentials then every so often add in an extra bit here and there till i had a fully furnished house.
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I'll have enough money put aside to furnish the house plus leave me a good amount of savings. I don't want to be left without savings so have set my budget accordingly.

mattyg said:
Just one that tried 3 times to sell me 3 different yet similiar products that I hadn't asked for and after me researching them afterwards would never have been suitable for our situation.

But yeah I suppose not all IFA are created equally.....as bad:D

Plus he also said "No" to me. About another issue. Which came across as " I'm not going to make much out of that so I'll tell him it can't be done"

Someone else did it instead
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Who over at pistonheads did you use Matty? Was it Sarnie?
 
Thanks for the advise all, I've just fired an email off to mattyg's recommendation to see what he can come up with. Then it's just a case of finding the right house at the right price.
 
I've been toying with the idea of going for a more expensive property with a bigger mortgage spread over a longer term. I've gone through the bills that my parents payout for household costs and added an approximation for mortgage payments from comparison websites and it should leave me a nice amount of disposable income.

Would you go for a house which has potential to stay in for a long term, or buy a stepping stone house?

Long term house been something similar to this http://www.zoopla.co.uk/for-sale/de...c5a7077757ad5d94bc8204784#tMqDx3Tt48ekkAPt.97
 
So I've bit the bullet and had an offer accept today (Not on the above house). I've snapped up a 3 bed detached, with full length single garage and parking for 2 cars up front. Solid wood flooring down stairs, newish boiler and windows too. No chain also which is a plus, and a good area. So hopefully all goes well from here.
 
The broker MattyG recommend has been pretty good so far. Even after I managed to spam him with over 100 e-mails when my iPad bugged out.

House value: 166500
Deposit : 33300
5 year fixed over 30years
2.89%
All fees added onto the mortgage.
£553pm
 
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