First time buyer needs help.

MartynHaigh

Help me!

I'm 26 and am currently living with house mates (all older than me) from hell who seem to be content with living like students for the rest of their lives. I live in brighton and house prices are notouriously expensive, I'm earning £25K a year and have no deposit.

I phoned up my bank and they told me they would be willing to lend me £100K, which won't even get me a bedsit from the look of the current market. Ideally I'd like to borrow ~ £115 which will give me a single bed flat. From the figures they are giving me (repayments of £540 a month for the first 3 years on a fixed time of 4.99% with an overall of 5.6%, going to £790 after the 3 years are up) i can well afford a £120K mortgage as coupled with my monthly outgoings this is just within my monthly pay.

I'm looking at buying a slightly run down place and then do it up and sell it on within 3 years. Am i being a bit too optimistic here wanting a mortgage of this size compare to my income? Can anyone point me in the right direction to talk to people who may be able to help me?

Thank you

Martyn

madfrenchgirl

Ok as a lot of people who are going to reply to this thread: change houses and save up! you have a 25k salary... I earn 18k and I save a min of 500 pounds a month. Plus buying just because you cant bear your flatmates anymore is not a valid reason, if the problem is them, just change houses or try to live in lodgings where usually people tend no to live like students anymore...

herbiesjp

There may well be some lender that could look at this for you on your own back on a 100% basis - there may also be the guarantor option which you might want to look into.

Whichever way you look into the mortgage - you would need to sure that the mortgage would be afforable to you during that 3 year period that you are looking at.

meanmachine_2

Haven't house prices fallen in Brighton this past year?

I had a friend who almost sold her flat for 126K 12 months ago, now she'd be lucky to get £115K for it.

Why can't you use your healthy salary to save up the 5K for a deposit? Then you'll be able to buy a place with a standard (ie cheap) mortgage?

Unless you're living like a student as well...

It staggers me that time and again people come on here, some with massive salaries, but NO deposits.

It really is quite depressing, if you think about it.

Also, you need to be sure you've cleared any personal loans or other debts before applying.

copperwasher_2

Depending on your job some lenders will allow you to borrow up to 5 times your salary, but I must agree with madfrenchgirl, if the only reason for moving is your current house mates then move to a place on your own!

Taking on a mortgage is the largest financial commitment most of us will ever make in our lives so you need to think very carefully before taking the plunge.

MartynHaigh

Don't get me wrong. my current housing situation isn't the only or indeed main reason for me wanting to buy a property. I see this as the next step in my life, getting on the property ladder is a very big deal for me and something I've been considering for a while now.

I've only just landed this job for £25K, before that i was on a pittance, and hence it has only just become a realistic opportunity for me to think about buying a house, and also hence i have no deposit.

I appreciate having a deposit will get me a better deal, but at the moment saving up that much money seems a long long way away and i have the reason and the urge to do this now. It seems to me that by renting I'm just throwing money down the drain, and I'm pretty disillusioned with the whole house sharing atm.

M

Magentasue

Out of interest, how much is your rent now and how much are you saving every month?

madfrenchgirl

ok so why dont you go live in lodgings? usually, landlords are friendly and keep everything tidy so you wont feel like you are living with students anymore.

Also, as I previously mentioned, you can save a hell of a lot very quickly if you really want it. I usually save 500 pounds on my 18k salary. Just budget everything and see how much you can save and try to stick to it for at least 3 months and you'll see. Also, what was the pittance you are referring to?

Finally, if you are still not convinced of the benefits of having a deposit, try charcolonline.com to compare with ot without deposit... You will see the difference is astonishing, why do you think Oh and I are trying to save?

meanmachine_2

Martyn, I do sympathise.

Everyone needs a motive to make a huge purchase like a house. For many years it was FEAR of being priced out of the market. With that fear dissipating, I've become very lazy.

In your case, it's annoyance at your housemates and the desire for your own space.

Personally I'd use that annoyance to encourage you to save. By this time next year you'll have that 5K saved.

Punching your details into the online checkers, there's very little out there for you on a 100% mortgage. It really would be a waste of your money.

lottie$_2

I can sympathise - I also live in Brighton, and know just how much the rents are, and the little that you get for them. Madfrenchgirl - there is no way on earth you could live here, earn £18k and be able to save £500 a month. My council tax alone is in excess of £150 a month, and once rent and bills go out there isn't a huge amount left to play with. As for lodgings - Brighton doesn't have too much in the way of those - tends to be either student style shares, or you rent your own place....

MartynHaigh - you might struggle with finding a run down place - these tend to be snapped up immediately by cash buying developers....

But that's not to say I don't agree with everyone's advice on saving - that's what i'm doing, and have been for what seems like forever

tomstickland

Boring but realistic, you've got to save a deposit to get the best deal.