Impatient to buy?
Discussion
Me and my wife have been renting for 5 years now but we're not getting any younger and so went for a mortgage meeting.
I'm a part-time student and she works full time and we have two children. My part-time job just about covers the childcare costs, so it's pretty much only based on her salary (I assume!) They offered us a 10% deposit mortgage of £198,000.
Now, £220k doesn't buy a lot around here (Bedfordshire/Bucks border) with the house we're renting probably being about £270k.
So, the question: Would you find what you could and get on the property ladder, or wait a year until I can apply for a proper full-time job once I've finished my masters?
Any thoughts welcome, cheers.
I'm a part-time student and she works full time and we have two children. My part-time job just about covers the childcare costs, so it's pretty much only based on her salary (I assume!) They offered us a 10% deposit mortgage of £198,000.
Now, £220k doesn't buy a lot around here (Bedfordshire/Bucks border) with the house we're renting probably being about £270k.
So, the question: Would you find what you could and get on the property ladder, or wait a year until I can apply for a proper full-time job once I've finished my masters?
Any thoughts welcome, cheers.
How likely are you to get a proper full-time job, how quickly, and what would it take your budget to? Realistically, are you going to be on £25K+, or as you are?
If the grand plan fails for whatever reason, you'll be in a worse position because you'll have spent/wasted another years rent and prices will no doubt have gone up even more. As Mr Eastwood said, 'How lucky do you feel?'
If the grand plan fails for whatever reason, you'll be in a worse position because you'll have spent/wasted another years rent and prices will no doubt have gone up even more. As Mr Eastwood said, 'How lucky do you feel?'
You're in a similar position to me. I have a preset salary increase coming into play next April (circa 35% of current salary) and my wife and I feel we want to wait for that to kick in and use the new income multiple towards getting a bigger house, especially as the cost/hassle of moving is a lot these days. The only thing I've noticed though is don't forget that the deposit will then be 10% of the higher amount, if you don't have that higher amount then the increased multiples on salary doesn't help anyway.
ETA - although renting I own a house that I rent out so don't feel as affected by possible increases/decreases in the market in the meantime.
ETA - although renting I own a house that I rent out so don't feel as affected by possible increases/decreases in the market in the meantime.
Edited by Petrus1983 on Thursday 11th August 10:54
What are you paying in rent right now and what would your mortgage payment be (interest and principal)? My gut instinct says wait a year, house prices don't really seem to be going anywhere right now so I don't think you'll lose much by waiting until you can afford something you actually want. If you buy now, only to want to move somewhere nicer in a year or 2, you'll have wasted the stamp duty and buying fees...
AyBee said:
What are you paying in rent right now and what would your mortgage payment be (interest and principal)? My gut instinct says wait a year, house prices don't really seem to be going anywhere right now so I don't think you'll lose much by waiting until you can afford something you actually want. If you buy now, only to want to move somewhere nicer in a year or 2, you'll have wasted the stamp duty and buying fees...
This is what we're swaying toward. We currently pay £895 (gas inclusive) for a 3 bedroom semi on a private road. For the mortgage we're looking at it'd be about £940.
I wouldn't take a job that started on less than £30k and they'd then offer us substantially more; around the £350k mark. However, the most we could reasonably get a deposit for is £25k...
...but the difference between a 220k property and a 250k property is surprisingly massive!
SpeedMattersNot said:
...but the difference between a 220k property and a 250k property is surprisingly massive!
I remember this feeling, that somehow if we could increase the budget 5-10% we'd be in a new league of propeties. The problem is that the property 10% above budget is always nicer! So when you're looking at 250k properties you'll be thinking "if only we had 275k, then we' be able to get something really nice"...As some have said, depends on whether you'd be happy for 5yrs or so in what you could buy now.
If so, nice little 'bonus' when you start earning full time... Could start overpaying / saving / paying any other debt down etc, plus you'll have been paying the mortgage down in the interim.
ETA: I only say this as I got an unexpected 10% pay rise 2mths after moving in
If so, nice little 'bonus' when you start earning full time... Could start overpaying / saving / paying any other debt down etc, plus you'll have been paying the mortgage down in the interim.
ETA: I only say this as I got an unexpected 10% pay rise 2mths after moving in
Edited by ThunderGuts on Sunday 14th August 17:51
Simpo Two said:
SpeedMattersNot said:
I wouldn't take a job that started on less than £30k
From part-time student to £30K pa in one go? I should have been in your industry!Jockman said:
Absolutely no harm in dropping Sarnie a pm on here. The advice is free and solid.
Cheers, I'll look him/her up. Though I feel for now we've kind of made our decision, although my wife has just applied for a new rather palatable job, so who knows. Simpo Two said:
SpeedMattersNot said:
I wouldn't take a job that started on less than £30k
From part-time student to £30K pa in one go? I should have been in your industry!XMT said:
Not sure what the OP is studying but I remember we used to trust rubbish like this when we were at uni - "you'll fall into a 30K+" reality was if you got 15k you were doing ok. 20k and doing well, 25k and it was a miracle.
He's married with two kids and he's taken time out to study for a Masters so taking a £15K job isn't going to be in the plan.supercommuter said:
How much is your wife earning? Would not want a £350k property on a £30k base if my wife was on similar. The repayments would give me a squeaky ass.
The £350,000 mortgage was offered on me earning a full time wage.As said, we're going to wait as it allows us to move if we need to. I'll revisit this in 6-18 months time!
SpeedMattersNot said:
he £350,000 mortgage was offered on me earning a full time wage.
As said, we're going to wait as it allows us to move if we need to. I'll revisit this in 6-18 months time!
>10x salary mortgage offer?As said, we're going to wait as it allows us to move if we need to. I'll revisit this in 6-18 months time!
Make sure you get it before you have kids and they are in nursery. Nearly killed my application recently!
Gassing Station | Finance | Top of Page | What's New | My Stuff