First Time Buyer - Aaarrrggghhh!!

Staciep88

Hello!!

Well as the title says me and partner are looking into buying a property that costs £130k we have a £20k deposit in place but I have no idea what to do now.

We are still in early stages, havent made an offer or anything. But if we were to are we meant to speak to a mortgage company before or after to offer has been made?

I have been getting rough quotes online and they have been coming out at about £550 p/month which is fine, thats putting in the whole amount of £110k that we would need so obviously it would be a little cheaper depending on how much it can be knocked down by (interest only - this is all we can afford to do at the moment due to partners financial mess!) But after that is cleared we will look into a repayment mortgage.

So....what to do?!

Thanks

Chris2685

It's probably best to arrange to see a financial advisor, it might cost you some money, but they will be much better at working out how much you can afford to borrow and will look at the whole of the market to get you the best mortgage deal.

baby_boomer

If you were seriously wanting to offer then it's worth getting the mortgag in place so that the agent will advise the vendor to take you more seriously.

But you aren't seriously going to buy now, are you?

Why not wait for prices to fall further and for vendors to catch up with the big picture?

There is some blood on the carpet, but it won't be long before it's up to our ankles. Why add yours to the pool?

Staciep88

baby_boomer: thanks, i think its the right time to buy. I dont beleive in this prices dropping everywhere. I live in Bude, Cornwall and no prices have dropped around here. Its a brand new detached 2 bed bungalow with parking and gardens for £130k - to me that is cheap!

baby_boomer

To be fair, that is cheap compared to other [seemingly] similar properties in the area. I found one on the market at £189K.

Good luck if you go ahead.

wymondham

Staciep88 wrote: »

baby_boomer: thanks, i think its the right time to buy. I dont beleive in this prices dropping everywhere. I live in Bude, Cornwall and no prices have dropped around here. Its a brand new detached 2 bed bungalow with parking and gardens for £130k - to me that is cheap!

Why would Bude be immune to house price drops?

sdooley

Do you have a £20K deposit? You have £6K debt. You have £4K buying, moving, stamp duty etc costs.

Just make sure you chip a good bit off the asking price.

justpurchased

Hi, See if you can get away with a 10% deposit and 90%LVT and use the rest of the cash to get rid of much of your OH debt as possible.
Provding the intrest rate on the house is lower than the intrest on your OH Debts you will be better off.

Staciep88

wymondham: i dont beleive that the prices will drop because its always been a very popular coastal town, i may be wrong but at the minute prices are still the same as before.

sdooley: Yes I have 20k deposit and the money for all you mentioned, that debt is partners so with the deposit being mine im not really mixing the two. Yes i'm hoping we can knock about 10k off - hey, u never know!

justpurchased

sdooley wrote: »

Do you have a £20K deposit? You have £6K debt. You have £4K buying, moving, stamp duty etc costs.

Just make sure you chip a good bit off the asking price.

Now is the time to buy if you want a big reduction an a new build you should be able to get 20%+ off. If you can't do what you think is best dont listen to the bitter you know your situation best.

wymondham

Staciep88 wrote: »

wymondham: i dont beleive that the prices will drop because its always been a very popular coastal town, i may be wrong but at the minute prices are still the same as before.

Are you looking at the price they are asking or what they sold for?