Good resources for 1st time buyer?

[Antarctic Mat]

Morning all!

I'm considering a move onto the property ladder, although I am 36, I have never been in the UK long enough to warrant researching into property, I am now about to move back semi permanently and want to know where to start getting information.

Obviously I'm aware of the downturn in the market, I'm hoping to buy at the right time. I earn £40k+, have £25k in cash now to go towards a deposit, am I likely to be able to get a mortgage with that or is it really tricky at the moment? I'm going to be working near to Gloucester so that's the area I want to buy in.

Any advice, pointers or links to further information would be much appreciated.

Thanks!

Mat.

[Road Pest]

That 25k deposit? Is it after costs of moving has been taken into account?

You'll be looking at a 100k purchase price to get a decent mortgage. globrix.com nethouseprices.com will let you see properties on the market and what they previously sold for. Nationwide website provides data on how much the house prices have fallen by area of the UK to give you some idea of what the purchase price of any house should be.

[Antarctic Mat]

Thanks for the info Roadpest!

So, as I have no knowledge at all, I'm only likely to be looking at £100k houses with £25k deposit and £40k+ wages? That will obviously effect what I decide to do as that will not buy much in the areas I'm looking at. The £25k is straight cash, I have money for fees etc. on top of that, plus my deposit is growing at a couple of £k a month at the moment.

Thanks for your help, I will obviously continue with as much research as possible before I make any plans.

Cheers.

Mat.

[Road Pest]

You can go up to 85% LTV which could extend your purchasing power to 160k, but the mortgages will be more expensive.

It's the deposit that will restrict you more than your income.

Edited by Road Pest on Friday 10th April 12:22

[Antarctic Mat]

Ahh, I see, would I be better waiting until the end of the year and having a deposit of £35-40k? What is the ideal percentage of property value I should be looking to raise as a deposit?

Cheers again.

Mat.

[Road Pest]

Antarctic Mat said:

Ahh, I see, would I be better waiting until the end of the year and having a deposit of £35-40k? What is the ideal percentage of property value I should be looking to raise as a deposit?

Cheers again.

Mat.

Off the top of my head best deals currently are at 60% LTV. However if you find a place you want and you've only got 15% to put down on it then depending on how much you like the place then no reason not to make a move straight away.

Have you seen anywhere that you fancy yet?

[Antarctic Mat]

Ah, I see, more than I thought to be in an ideal position.

Not found anywhere yet, still in the early stages of thinking about it, I'm not in the country at the moment, will be back in 3 weeks and will start the serious leg work then, always good to get some advice early on though so thanks for your help.

Trouble I have is that my job sees me away for about 5 months a year, I hate the idea of paying rent on a property that I am away from for such a lot of the year, seems such a waste!

Thanks again, enjoy the bank holiday!

Mat

[Road Pest]

No worries, there is a guy called Scotal on here that is a broker, the firm I work for doesn't arrange purchases, but I think he may be able to help you when you are ready.

Have a good one yourself

[bazking69]

With a bigger deposit you'd get better mortgage.

[maser_spyder]

Are you local to the area you're planning to move to?


If you are, then excuse me for saying, Cheltenham is quite a lot nicer than Gloucester....

[Antarctic Mat]

Afternoon!

Thanks for the comments, I can see now that I need to raise a bit more cash so will plan to do so before the end of the year.

I'm not local but won't want to be in either Cheltenham or Gloucester, I'm a country boy, none of this city lark! I'm looking at a few rental properties out in the sticks just now so hope to find something soon, although I hate the idea of paying for rent when I'm hardly there!

Cheers!

Mat.

[finefettlefilly]

When budgeting for a mortgage try not to see what the maximum amount you can get, but with your deposit and expenditure and a mortgage at the highest rate it's ever been so when the interest rate jumps from 0.5% to 12% you can afford it and maintain your lifestyle. Obviously the more you have for a deposit the better, but don't skint yourself, leave a little in the bank for emergency mortgage payments for at least a couple of months for all eventualities as a couple of grand more on mortgage really won't make that much difference and at 36 years of age do it sooner rather than later as most mortgages run for 20 to 30 years and you really want it paid off by the time you retire.

[Road Pest]

Reading the papers it seems you may not have to wait that long as there are a few lenders starting to loosen up criteria and offering better rates on higher ltv loans. Granted not many but hsbc notably have released a 90% deal at 3x salary.
timesonline.co.uk/tol/money/property_and_mortgages/article6058861.ece
ETA I'm not a mortgage advisor so I wouldn't like to say whether this deal is suitable, just pointing out that there are opportunities out there.

Edited by Road Pest on Sunday 12th April 12:41