First time buyer mortgage decisions....

First time buyer mortgage decisions....

Author
Discussion

Jakey123

Original Poster:

242 posts

144 months

Thursday 23rd July 2015
quotequote all
Hello all,

Looking for a bit of advice,
Currently 24 and living at home with 'rents
I've landed a new job and am on circa £46k, with savings of circa £25k ready to purchase a first house.
Firstly, anyone know how much I'm likely to be leant as a single applicant?
Is circa 160/170k accurate?
This gets you bugger all around my work (Heathrow area).
And I commute in from Dunstable way currently so would likely stay around here, get a bit more for the money!

I'm debating against buying what I can now or waiting? as house prices seem to be going up as quick as I can bloody save!
Alternatively I can save for 6/12/18months and keep the mortgage down/much larger deposit?

What do we all think?
What would you all be doing, no real fixed outgoings other than 450miles fuel a week commuting!!




Moominho

893 posts

139 months

Thursday 23rd July 2015
quotequote all
Sarnie is the man for this, he will appear soon, or PM him.

However I would say you could probably borrow a bit more, you could even consider the Help To Buy scheme.


Sarnie

8,025 posts

208 months

Thursday 23rd July 2015
quotequote all
Jakey123 said:
Hello all,

Looking for a bit of advice,
Currently 24 and living at home with 'rents
I've landed a new job and am on circa £46k, with savings of circa £25k ready to purchase a first house.
Firstly, anyone know how much I'm likely to be leant as a single applicant?
Is circa 160/170k accurate?
This gets you bugger all around my work (Heathrow area).
And I commute in from Dunstable way currently so would likely stay around here, get a bit more for the money!

I'm debating against buying what I can now or waiting? as house prices seem to be going up as quick as I can bloody save!
Alternatively I can save for 6/12/18months and keep the mortgage down/much larger deposit?

What do we all think?
What would you all be doing, no real fixed outgoings other than 450miles fuel a week commuting!!
Your absolute max lending will be circa £230k depending on circumstances and credit score etc.... smile

Mattt

16,661 posts

217 months

Thursday 23rd July 2015
quotequote all
Quite ironic that higher rate taxpayers can't afford decent housing!

BoRED S2upid

19,641 posts

239 months

Thursday 23rd July 2015
quotequote all
I got on the ladder as soon as I could 22 I think I also rented a room which paid half the mortgage and was tax free which helped a great deal.

Jakey123

Original Poster:

242 posts

144 months

Thursday 23rd July 2015
quotequote all
Moominho said:
Sarnie is the man for this, he will appear soon, or PM him.

However I would say you could probably borrow a bit more, you could even consider the Help To Buy scheme.
Thanks

I've seen the help to buy scheme, just not so sure on,
But then again I suppose it gets me a nicer place/better rate mortgage.
I will always owe that same %, which I would be paying within the 5yr interested free bracket!
Does this also only apply to new builds only?

Thanks for advice all!
Renting a room sounds a smart move if I do end up with a 2 bed!

Prices seem to all have had a crazy jump again recently!

LivewareProblem

1,270 posts

193 months

Friday 24th July 2015
quotequote all
You sound like me a few weeks ago!

All I'll say is that whatever you go for, get a 15% deposit rather than 10% as it makes a world of difference and opens up a lot more options for you

Sarnie is dealing with me at the moment, even with my bad credit history he has been able to help, so a +1 for him from me

sheldimus

281 posts

138 months

Friday 24th July 2015
quotequote all
Jakey123 said:
Hello all,

Looking for a bit of advice,
Currently 24 and living at home with 'rents
I've landed a new job and am on circa £46k, with savings of circa £25k ready to purchase a first house.
Firstly, anyone know how much I'm likely to be leant as a single applicant?
Is circa 160/170k accurate?
This gets you bugger all around my work (Heathrow area).
And I commute in from Dunstable way currently so would likely stay around here, get a bit more for the money!

I'm debating against buying what I can now or waiting? as house prices seem to be going up as quick as I can bloody save!
Alternatively I can save for 6/12/18months and keep the mortgage down/much larger deposit?

What do we all think?
What would you all be doing, no real fixed outgoings other than 450miles fuel a week commuting!!
Firstly, congrats on being able to save that much up at 24 years of age! Not many do..
And be aware that you've never got it so good as when you live at home with the folks!
No harm in having a chat with a few mortgage providers just don't necessarily get credit checks as AFAIK the more you have, the lower your score goes. Happy to be corrected.
I'd strongly suggest a financial adviser too as they can access a much wider range of products and quickly.

After that, if you're in no rush, don't settle for something that doesn't float your boat. You'll only regret it. And don't fall in love with the first property you view. Much the same as car shopping!

Prices down south really are shocking. Circa £150k up north will get you a 4 bed detached quite easily!

Jakey123

Original Poster:

242 posts

144 months

Friday 24th July 2015
quotequote all
sheldimus said:
Firstly, congrats on being able to save that much up at 24 years of age! Not many do..
And be aware that you've never got it so good as when you live at home with the folks!
No harm in having a chat with a few mortgage providers just don't necessarily get credit checks as AFAIK the more you have, the lower your score goes. Happy to be corrected.
I'd strongly suggest a financial adviser too as they can access a much wider range of products and quickly.

After that, if you're in no rush, don't settle for something that doesn't float your boat. You'll only regret it. And don't fall in love with the first property you view. Much the same as car shopping!

Prices down south really are shocking. Circa £150k up north will get you a 4 bed detached quite easily!
Thanks smile
I think the sensible thing is to grow the savings for six months then buy, maybe puts me in a stronger position and able to afford 15% on something rather than scraping in at 10% as mentioned.
I'll make some contacts and try to assess this.

Thanks all for advice,

red_slr

17,122 posts

188 months

Friday 24th July 2015
quotequote all
Jakey123 said:
Hello all,

house prices seem to be going up as quick as I can bloody save!
This can be a real problem. We are in a similar position.
Everything we looked at 12 months ago is now £50-£80k more now.
We are in the process of buying a new place now, its not ideal but we felt that if we did not move this year we may end up trapped no matter how much we save.
All I can say is once we are in this house I doubt we will move again for a long long time.