Planning for a house....

Interesting when looking at some mortgages, the difference between a 10% through to 20% mortgage isn't all that different. I think you need to be making >25% to qualify for the best mortgages. For example, a 10% mortgage with the Post Office attracts an interest of 4.5%. Your monthly repayments are a little higher than a 15% mortgage but the rate is fixed at 5 years whereas a 15% is only fixed at 2 years at 3.49% increasing after that to 3.9.

It may be something you want to consider if you decide you want to move sooner rather than later and can afford an extra £60-£80/month on your mortgage and at least with a 5yr fixed rate you know where you are financially for a longer term than a 2 yr.
 
I'd agree with the advice given, saving for the house is a better bet. Whatever you do, don't forget to save extra for solicitor fees, surveys, and all the other lovely charges that pop out of the woodwork.....
 
Luckily me and the gf had enough money to be able to skip the flat stage and we jumped right in at the 2 bed house stage.

However, unless I was incredibly desperate to move out ASAP for some reason, I would hang on and go for the house if I were in your shoes.

Not only is it very expensive to buy a place in terms of fees, but you spend a lot of time furnishing and decorating it - both of which cost more money - and in my opinion aren't particularly fun until you get to the later stages.

So far we've been in for 7 months, and the cost of buying the place (all mortgage fees, solicitor fees, surveys etc) and all the work we've done it so far (no building work, just things like painting, carpets, curtains, furniture etc) will have easily surpassed 8k, and we're doing things on a relatively small budget. We've also got at least another 10k's worth to get it into the state we want it as well.

I don't think I would do all that knowing that I'd only be in the house for a few years. Not only is it a lot of money essentially down the drain, I don't think I'd like the idea of knowing it's just a temporary stepping stone - it's never feel like home.
 
I am currently in the process of arranging a mortgage (go to the bank tomorrow to see about it)

And I feel so sorry for you english folks!

I am looking to put an offer in on my first house which is a repossession, its a 3 bedroom end terrace house which needs minimal work done and its up for £40k :D


Most family members ive talked to and as others have said here also factor in the cost of everything before you even get your house (mortgage fees, solicitor fees, surveys, moving costs) And at least a 20% deposit.

Also take into consideration what extra's will you have to buy for your new home that you might not have enough money or get a big enough mortgage to purchase in the short-term? (appliances etc)

Also go and see some different mortgage brokers as some incorporate the fees into the mortgage (mortgage fee's + survey)


If you are in no rush to move out of where you are currently living just keep saving until you find the perfect house that suits all your needs, if its meant to be it's meant to be!
 
Thanks for all the advice guys, Redditch isnt known for its luxury and we get a lot of the chav culture, but there are a few nice places :). Commutable to Birmingham which is nice :)

Does anybody have a rough estimation of extra fees for a house of this size? Solicitors etc?

were going to save as much as possible to make it all affordable, we already have a 'bottom drawer' which weve bought glasses cutlery etc (its not spilled into the loft) just with the basic odd bits of money we save so hopefully moving in isnt going to be a massive shock to the bank balance.

Next on the list is Pots and Pans! :)

Our target is about 26-28k to save that should cover some deposit and hopefully fee's
 
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