Your advice is needed - complete newbie, stuck in a dead end!

MajicMOLE

Yes, I agree.

We have recently got a joint account and we are both putting cash into it each month, but as i said earlier, at this moment in time, we vertually have nothing - £1500

hethmar

You need to get a deposit. What area of the country are you looking in and what sort of property? You can then work out the likely cost of the deposit - say 10% of the property price and then you need solicitors fees, furnishing the property, doing any repairs, getting money together for utility bills, council tax and so on.

Look at ways of getting shot of that high interest loan first before you buy a property.

Keeping_Positive

I would save up at least six months of the £1140 spare and if that is fairly straight forward 1) you have shown its actually available rather than just on paper and 2) you can either pay a chunk off the loan or use as a deposit. I would look at downgrading your car for a cheaper model though to cut the loan down further.

Edit sorry Kez you got there first

MajicMOLE

Thanks for your replies.

We haven't looked at getting a mortgage yet, thought id come on here first for some info!

Kez idea is good - don't think i could spend another Christmas living with parents! But if we do what we can with the money we can, and get rid of some of that debt, then my situation in 6 months time could look more promising, particularly for renting anyway

MajicMOLE

I have already looked at downgrading my car, but it really wouldnt be worth it! The car has halved in price, and thats excluding the above average milage it has.

We are looking to live near to where we are now, in Lancashire. We are after a basic, small house, thats all, we arnt that fussed. Houses in this area seem to be starting at £120k atm

hethmar

So realistically you need at least £12k deposit.

MajicMOLE

Yes

Seems impossible

hethmar

Of course it isnt! You say you have over £1k a month spare at the moment - start saving that regularly, cut down your outgoings - stay in more, buy less, look at cheaper properties (the prices are still falling and are likely to for the next year) and work towards it. Dont be tempted into one of the shared purchase deals though. Are the parents likely to pass you some money towards a deposit if they see your efforts at saving?

MajicMOLE

Well if you put it like that! Just can't bear the thought of still being here next Christmas!

I doubt they will, they are pritty much strapped for cash themselves unfortunatly, and I'm not aware of any significant savings

hethmar

Start now Read all the boards on here and ask for advice on that loan and on money saving - you will do it if you buckle down. Whilst you are saving that £1100 (hopefully more) a month, the property market will be falling - so its no loss to wait for that year.