First Time buyer, need advice!

sami_lou

Hi

IM A SINGLE FEMALE AND I WANT TO BUY A HOUSE, I COULD GET 5K-10K DEPOSIT, AND WOULD BE LOOKING TO BUY A HOUSE FOR AROUND £100K.

DO YOU THINK IT WOULD BE POSSIBLE TO GET A MORTGAGE. IM REALLY WORRIED WHAT WITH THE CREDIT CRUNCH ETC.

WDOES ANYONE HAVE ANY TIPS OR ADVICE ON WHO TO ASK FOR A MORTGAGE, OR WHO TO ASK FOR ADVICE.

MY INCOME IS AROUND 21K PER ANNUM. I DONT HAVE ANY LOANS OR BIG DEBTS.

THANK YOU

McCalls

Hi Sami-Lou,

I'm also a first time buyer and in a similar position to you. I earn 25K per year which will be soon be going up. I've got £1900 on a credit card tho but will have paid this off by January and will probably have about £10,000 deposit by next June as i've downsized and will be starting a part time job for 10 extra hours a week in the next few weeks which will earn me about 5-6K a year.

I'd say hang on 6-9 months before buying as the property prices are still falling and then you can beef up your deposit get more house for your money and a better interest rate.

I put my salary and expected PT job earnings on this website http://www.alliance-leicester.com/mortgages/Affordability-Calculator.aspx#summary
and it said I can borrow up to £104,000 altho I don't think i'll need to borrow that much as the house prices have dropped about 10 grand in the last few weeks in my area.

Hope this helps!

Where are you thinking of buying?

lonestar1

Well with a 10k deposit your looking at a LTV of 90% which is do-able but its a loan mutiple of 4.5 which may be tricky
Dont forget to budget for legal fees as well

beecher

I wouldn't have thought you could borrow much more than 3 times your salary, and would be very wary of going over that on your wage. A mortgage of £90,000 over 25 years at 6.5% would cost you over £600/month - is that affordable on top of council tax, utilities, maintenance, insurance and the rest?

Best bet is probably to add to your deposit and wait for prices to come down - you might get that £100,000 house for a lot less in a year or so.