First Property
Discussion
Hi there,
I'm just about to graduate from university and have a job lined up to start in August. Now that I'm entering the 'real' world I'd like to get on the property ladder as soon as possible.
From savings whilst growing up and saving whilst on placement year last year I'm in a fortunate position to have a decent sum of savings - some of this is tied up in an ISA.
In April 2017 the ISA matures and I'll have access to that lump sum and hence I'm looking to buy a property around that time.
Loan-to-value wise I shouldn't have too much of an issue getting a mortgage if help-to-buy schemes are still around.
My main concern is how much does will my gross earnings affect the amount I'm able to borrow? I'm aware some banks will only lend a certain multiple of your income (I think Halifax is 4.5 times), but do lender typically go above this as long as the mortgage is affordable under a stress test?
Advice from people that have gone through this and got the T-shirt would be really helpful.
Kind Regards,
Ollie
I'm just about to graduate from university and have a job lined up to start in August. Now that I'm entering the 'real' world I'd like to get on the property ladder as soon as possible.
From savings whilst growing up and saving whilst on placement year last year I'm in a fortunate position to have a decent sum of savings - some of this is tied up in an ISA.
In April 2017 the ISA matures and I'll have access to that lump sum and hence I'm looking to buy a property around that time.
Loan-to-value wise I shouldn't have too much of an issue getting a mortgage if help-to-buy schemes are still around.
My main concern is how much does will my gross earnings affect the amount I'm able to borrow? I'm aware some banks will only lend a certain multiple of your income (I think Halifax is 4.5 times), but do lender typically go above this as long as the mortgage is affordable under a stress test?
Advice from people that have gone through this and got the T-shirt would be really helpful.
Kind Regards,
Ollie
I think that's my next stage too, take a visit to a brokers and see what is actually available for me.
I'd just like a little bit of insight first to manage my expectations.
My graduate job is in Nottingham, where property prices aren't ridiculous and it's more expensive to rent than pay back a 25 year mortgage each month at current rates. Hence, another reason for wanting to buy fairly quickly.
I've not looked at the 'Starter Homes', I'll have to do a little bit of research.
I'd just like a little bit of insight first to manage my expectations.
My graduate job is in Nottingham, where property prices aren't ridiculous and it's more expensive to rent than pay back a 25 year mortgage each month at current rates. Hence, another reason for wanting to buy fairly quickly.
I've not looked at the 'Starter Homes', I'll have to do a little bit of research.
lewisf182 - I have both. I started a first time buyers ISA last year at some point, but you could only put £1000 in at the start and £200 a month thereafter. So I am currently doing that and have a normal ISA from before that matures in April 2017.
Good to hear that going to a broker seems like the right choice, thanks.
jonny70 - I've got the help to buy ISA going, I'll have to do some research on the lifetime ISA.
I should have £20k+ by April 2017 for a deposit. So, I expect the gross income cap is going to be my biggest obstacle to buying rather than deposit amount. My salary will be less than £30k (excluding bonus) from August.
Good to hear that going to a broker seems like the right choice, thanks.
jonny70 - I've got the help to buy ISA going, I'll have to do some research on the lifetime ISA.
I should have £20k+ by April 2017 for a deposit. So, I expect the gross income cap is going to be my biggest obstacle to buying rather than deposit amount. My salary will be less than £30k (excluding bonus) from August.
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