I'm thinking of buying my first house....
Discussion
As the title says, i'm seriously looking into taking the first step onto the property ladder. My girlfriend and I are moving in together soon, and we have the option to either rent or buy - i'd very much prefer to buy.
A few details:
Budget: £100k (could go to £120k for the right property - several properties in my area within budget).
Deposit: £15k, though figure increasing with monthly saving. Some extra cash budgeted for furnishings and fees.
Timescale: Not desperate to move, can wait for the right property and right deal.
Earnings: Both earn £17k p/a. Looking to increase earnings but not factored in to sums. Minor loans but all paid within the next 3 years.
Spoken to a few mortgage advisors already, the best deal I can get is a two year fixed with a 15% deposit at 5.69% (£102k with £18k dep.). Dropping to a 10% raises interest to 6.61% on a 3 year deal, and an extra £16k overall on the mortgage (£156k plays £172k total repayable).
Now, am I mad to consider buying at this time as an FTB? Going by what I have seen and heard, rates will rise and therefore the deals I have seen will disappear. Is there anything I should look out for?
Has anyone got any general advice for first time buyers?
All help appreciated
A few details:
Budget: £100k (could go to £120k for the right property - several properties in my area within budget).
Deposit: £15k, though figure increasing with monthly saving. Some extra cash budgeted for furnishings and fees.
Timescale: Not desperate to move, can wait for the right property and right deal.
Earnings: Both earn £17k p/a. Looking to increase earnings but not factored in to sums. Minor loans but all paid within the next 3 years.
Spoken to a few mortgage advisors already, the best deal I can get is a two year fixed with a 15% deposit at 5.69% (£102k with £18k dep.). Dropping to a 10% raises interest to 6.61% on a 3 year deal, and an extra £16k overall on the mortgage (£156k plays £172k total repayable).
Now, am I mad to consider buying at this time as an FTB? Going by what I have seen and heard, rates will rise and therefore the deals I have seen will disappear. Is there anything I should look out for?
Has anyone got any general advice for first time buyers?
All help appreciated
Edited by GTO Scott on Sunday 29th March 10:19
I don't think it has bottomed out yet so if you can try and hold on another few months.
Good luck, always nice to have something all your own.
I bought my 3 bed bungalow in Sevenoaks for £136,000 in 1997 and just paid the mortgage off this year . I had to drive crap cars for loads of years though to do it though, Clio 1.4RT automatic anyone
Sigh.
Regards
Andy
Good luck, always nice to have something all your own.
I bought my 3 bed bungalow in Sevenoaks for £136,000 in 1997 and just paid the mortgage off this year . I had to drive crap cars for loads of years though to do it though, Clio 1.4RT automatic anyone
Sigh.Regards
Andy
andy-xr said:
Yeah why not
Although I'd say hang on a little longer and see if a slightly larger deposit would get you a better result with a lower house price
3-6 months maybe?
Whilst I don't need to buy immediately, i'm not sure about waiting too long - the longer I wait, the more chance there will be of higher interest rates. How quickly could rates rise?Although I'd say hang on a little longer and see if a slightly larger deposit would get you a better result with a lower house price
3-6 months maybe?
ETA: Also, with the threat of rate rises, should I look for a longer fixed deal? I don't particularly want to come out of a 5.7% deal straight into a base rate of 10% (for example).
Edited by GTO Scott on Sunday 29th March 10:51
I wish i could get a house round here for 100k, might be lucky and get a small flat
If it were me ( and i,m much in the same position) i would wait a little longer.
My problem is even though prices are coming down so is the amount i earn and even so that work is starting to get very hard to win (self employed) so its all relative, i,d be better off it it was high prices and higher earnings (obviously)
I,ve also looked at the rates and like yourself would be lucky to get better than 6%
You need good parents who dont mind having you and the g/f live there
(or rich parents who buy you a house or basically will cover your mortgage payments should the worst happen like a lot of people i know)
If it were me ( and i,m much in the same position) i would wait a little longer.
My problem is even though prices are coming down so is the amount i earn and even so that work is starting to get very hard to win (self employed) so its all relative, i,d be better off it it was high prices and higher earnings (obviously)
I,ve also looked at the rates and like yourself would be lucky to get better than 6%
You need good parents who dont mind having you and the g/f live there
(or rich parents who buy you a house or basically will cover your mortgage payments should the worst happen like a lot of people i know)I am currently in a similar position. I have a 25% deposit, but am on my own in an average paid job. The hardest thing for me is actually being able to secure a mortgage that allows me to buy somewhere!
I am going to start looking around, and might view some places, BUT i don't think i will be buying for ~6months, unless something special appears.
It's interesting though, as i am currently paying ~£600/month to rent my 2bed flat, and £600/month is what a £100k mortgage would cost. So now it really is getting more tempting to actually buy for me.
Actually... as it's a sunny day, i am going to walk around and look at potential areas.
I am going to start looking around, and might view some places, BUT i don't think i will be buying for ~6months, unless something special appears.
It's interesting though, as i am currently paying ~£600/month to rent my 2bed flat, and £600/month is what a £100k mortgage would cost. So now it really is getting more tempting to actually buy for me.
Actually... as it's a sunny day, i am going to walk around and look at potential areas.
Edited by Matt.. on Sunday 29th March 11:12
I've just bought my first house alone, and I am in the middle of decorating it and updating it before I move in. I specifically looked for a repo'd property as you find they have the highest chance of a decent price. Plus there are no chains, and it's all relatively painless. I eventually got my house for c.35% less than the asking price. For example we had a 3 bed flat in possession, valued at £75k, so we gave them a mortgage for approx £83k. for whatever reason they couldnt afford the repayments and the property was repossessed. Baring in mind that the balance of the account was still £83k, property valued at £75k, and we eventually accepted an offer of £51k! The banks have already factored in their losses at this point and they just want rid of the property.
I worked for a large American bank (until Friday gone, when I was made redundant!) and the fact of the matter is... There are too many properties in possession of the mortgagee's. The banks do everything in their powers to avoid repossession but it does inevitabley happen these days, and the last thing a mortgage provider wants is an empty property on its books.
ETA: Try moneysupermarket.com for your mortgage. A broker will take a fee, these guys don't. I got mine through First Direct, and I'd highly recommend them as their rates are very very competitive at the moment. I was lucky enough to get a lifetime tracker at 0.99% above the BOE base rate.
I worked for a large American bank (until Friday gone, when I was made redundant!) and the fact of the matter is... There are too many properties in possession of the mortgagee's. The banks do everything in their powers to avoid repossession but it does inevitabley happen these days, and the last thing a mortgage provider wants is an empty property on its books.
ETA: Try moneysupermarket.com for your mortgage. A broker will take a fee, these guys don't. I got mine through First Direct, and I'd highly recommend them as their rates are very very competitive at the moment. I was lucky enough to get a lifetime tracker at 0.99% above the BOE base rate.
Edited by p4cks on Sunday 29th March 11:27
Just out of interest a lot of good static caravans cost about £25k. They are normally 2 bedrooms and diner kitchen. Now I know they have their downsides but really, just imagine not having to pay a mortgage each month and having that mortgage going towards a car.
House with a VXR Astra outside it or static caravan and a Nissan GTR and old Ferrari 308GTB? I'm sure static caravans must be group A for council tax as well, or perhaps they don't even pay it ?
Regards
Andy
House with a VXR Astra outside it or static caravan and a Nissan GTR and old Ferrari 308GTB? I'm sure static caravans must be group A for council tax as well, or perhaps they don't even pay it ?
Regards
Andy
zakelwe said:
Just out of interest a lot of good static caravans cost about £25k. They are normally 2 bedrooms and diner kitchen. Now I know they have their downsides but really, just imagine not having to pay a mortgage each month and having that mortgage going towards a car.
House with a VXR Astra outside it or static caravan and a Nissan GTR and old Ferrari 308GTB? I'm sure static caravans must be group A for council tax as well, or perhaps they don't even pay it ?
Regards
Andy
Are you kidding???!! I could live in a tent & sHouse with a VXR Astra outside it or static caravan and a Nissan GTR and old Ferrari 308GTB? I'm sure static caravans must be group A for council tax as well, or perhaps they don't even pay it ?
Regards
Andy
t in a bucket, would mean i could drive a £150k car, big fking deal!! I know this is piston heads but you'd honestly live in a shed to drive a car?![quote=Wacky Racer]My GUESS is that we are close to the bottom of the house price fall, spring/summer is on the way which always brings house buyers out, mortgage rates can only really go UP, so I would not hang around too long, certainly no more than two or three months......
Just my 2p......
[/quote
I'm thinkimg along those lines too.
Just my 2p......
[/quoteI'm thinkimg along those lines too.
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