first time buyers...or should we??

Irishorangutan

Hi guys ;D

I am writing as someone who is considering buying for the first time...

We're currently renting a one bedroom flat (beautiful, and big rooms, a true one off) for £450 per month. But we are looking to possible buy to cut our rent costs, and to get on the property ladder. (that's myself and my fiance i'm talking about.)

First problem - i'm self employed and she's a student. We're not particularly well off, we get by every month, and actually wouldn't find payments on a mortgage a problem. We could even get a guarantor(sp?) if we need one.

Has anyone any advice on the best way to start?? I openly admit to being naive in this market.

thanks

raeble

How much of a deposit do you have? And what sort of properties are you looking for? Self employed have to go the self certification route I think but you'd need to find about 25% deposit. Some lenders would lend you up to 90% on self certification however with all this doom and gloom there may be less lenders willing to do that. You would also be paying back at a higher interest rate than ordinary buyers.

clarkey_2

Depending on your fiance's situation, you might find it easier waiting until your fiance has graduated as you'll more likely be able to afford more. I think you'll find the vast majority of the board don't expect prices to continue to escalate at an alarming rate.

Irishorangutan

deposit situation just now isn't good, but it's early days. It's just a very depressing situation when you're paying thousands in rent.

My fiance doesn't graduate for another 3 and a half years, i have already graduated but, i'm a musician and am writing music and performing for a living - which can be a difficult existence.

If you get someone to act as a guarantor(sp?) does that change the situation?

otherwise looks like we could be stuck, renting for a while...

herbiesjp

Hi there

You have not given any idea as to the house prices and what your income levels are.

Being self employed does not mean you have to go self certifed - as long as you can prove your income you can go down a full status route like anybody else and get "normal" rates.

You could look at a graduate mortgage (enhanced multiples) or a guarantor mortgage, or simply a lender that will lend on affordability rather than multiples.

All this is generic at the moment as there are no figures to work with.

Mine is not a position to speculate to house prices, just give information on whether what you are asking is possible.

Bottom line is - yes it is possible.

However, as an adviser I would always need to make sure that a recommendation is suitable to you in your situation as well as making sure it is afforadble now and in the future.

Milky_Mocha

I'm probably not going to be popular with this but its only my opinion:

Think loooong and hard about making such a joint commitment when you are both unmarried. The legal implications during a split could be messy. I wouldn't even recommend a joint account let alone a joint property under the circumstances. I'm no expert but I've heard enough unpleasant stories to know not to go there.

At the end of the day, though, the choice is yours.

Travelqueen

Try Scottish Widows for a guarantor / graduate mortgage combo - though whether they'd like the self-employed bit is another matter...

I'm also inclined to agree with the previous poster about the logic of buying with your girlfriend. However - if you DO do it, make sure you get a deed of trust which sets down exactly how you will handle the property should you split up etc.

Good luck
TQ

janebrain

What about shared ownership? This is where you own a percentage of the property and the housing assoc or whatever owns the other part. Don't know much about it but my niece is hoping to do that I think.