FTB - Are we mad to buy now?

cmart021

Hi
Myself and my wife are currently renting a house and have been for the past year or so. The landlord has decided that he wants to sell the house although he will go ahead with a private sale if we want.

We have seen a mortgage advisor and have had a 195,000 mortgage agreed in principle with Halifax. Other houses in the same street were valued and put on the market for 250,000 earlier this year although have not sold. He has said we can have the house for 195,000. We think it would be a good buy.

The house is a five bedroom detached house with large garden and is only up about 11 years, it is also in a lovely area of the town, leading me to believe that if the market does recover we would be fine. However we plan to stay in this house long term.

Are we right to think this or will prices drop even more? I have also heard that stamp duty may be suspended in the near future.

We are both temporary teachers I have a 1 year contract with possible extension and my wife subs daily in different schools. That is the risky thing. Although it has been passed by mortgage lenders as they realise that this is the teaching situation in Northern Ireland. Very few teachers get permanent jobs until they are temping for about 7 years. We are only out 3.

Therefore it would be a big commitment and risk although we love the house and don't want to lose it.

What do you all think?

Go for it? stall for a few months? or don't bother about it?


Cheers

Cat695

for that amount of money and the risk i would hang on.....if other houses are not selling in the area then his probably will not either so i would hang off and see.......

hethmar

As first time buyers you could save a considerable bit of money if the government go ahead with a stamp duty suspension for first timers up to £250k - October has been spoken about as the likely time this could come about.

Its a difficult call, if you hang on and the owner puts the house on the market and someone else thinks its a bargain, you could lose it (though it is unlikely in the current market).

BTW, do Teachers not have access to specialised mortgage funding??? Or Key Worker funding?

Worth checking it out?

http://www.teachersbs.co.uk/mortgages/index.asp
http://www.professionals-mortgage-now.co.uk/pros/Teachers.htm
http://www.endsleigh.co.uk/key-worker-mortgages.html

sdooley

Northern Ireland is falling worse than most, isn't it?

Look at the last Land Registry sales, not valuations, for the street, and knock 15-25% off.

Wouldn't worry about stamp duty as what you might save in stamp duty (if there are changes, which might just be an interest free loan) you will definitely save in moving costs if you buy from the landlord. Definitely wouldn't take his first offer though - you might get an extra bit off just for asking.

cmart021

many thanks for the replies. I am trying to find out from land registry what the prices would have been with no joy. I did find out from a neighbour that a similar house sold for 255000 in May last year.

I have just briefly looked at those sites for teachers its just trying to get a 95% mortgage from them as we dont have much of a deposit.

T hinking of holding off for few months or perhaps putting in a lower offer and trying to get a vendor gifted deposit. I looked at it like this, taking the price of 255,000, the house prices would have to have dropped by almost 29% from last year to be in negative equity.(thats if we get the house for 180,000)

Well mixed up on this one, wrecking my brain now.

Again thanks!

lil_miss_17

We are FTBs and currently buying. It depends on your situation. If you are planning on staying in the house for several years, then go ahead and buy. Having said that, I know little of the NI market

GracieP

How will the monthly mortgage repayment compare to your monthly rent?

cmart021

We are getting the house rent for 520 a month (although if we are forced to rent a similar house it would cost us 700).

The mortgage would be 1163 a month.

The NI market is dropping just a little slower than in mainland. Although prices here have always been a lot lower.

sdooley

On a repayment or interest only basis?

If you can't afford to buy on a repayment basis, you can't afford to buy. (Especially if your job is insecure).

justpurchased

hethmar wrote: »

As first time buyers you could save a considerable bit of money if the government go ahead with a stamp duty suspension for first timers up to £250k - October has been spoken about as the likely time this could come about.

Suspension means holding off of payment to a later date. come on this is Nulab. you will have to pay it just at a later date so you need to factor in the cost as you will have to pay it.
Make a decision on your current circumstances not on possible outcomes in 5 or 10 years time.
If it is the house you want and will stay in it for years (a 5 bed detached should have enough space to last a few years:) and you have no impending redundancy etc. why not. But do check if you are getting a fair price. Get an estate agent to value it and ask what price you would need to put it on the market to sell it in the current climate, that should give you a good indication of what it is worth.

cmart021

Repayment would be 1270 a month, whilst we could afford this it would mean sacraficing a few things.

As we are in professional jobs that wages increase each year, I would rather go interest only now then in a few years down the line change to repayment.