Should I Buy Now Or Later

waynebouk

Help i`ve got about 15k saved and i want to buy a house with it. People are saying to me buy now while the rate is good and other people are saying wait untill the rate goes up and more people will start defaulting on there mortages which will result in cheaper houses. Please help as the money is screaming at me to spend it and a new car looks very nice indeed. Another thing is i am a good saver and i`ve been saving for about 3yrs so at an average of 5k a year isnt bad. Please any advice would be good also i live in the coventry area if that helps anybody.:huh:

Saver-Rob

How old are you?

I guess it depends how much of a rush you are in. I think most people are aware that prices are still coming down. However that does not mean that if something you really want comes up at a price you want to pay that you shouldnt do it. Unless you are planning on moving again within a short period of time it doesnt matter too much.

Personally I have tied up much of my money for 6 more months and will be in a position to purchase after that. I will be looking in the meantime, learning and working out what I can borrow (and what I actually want to borrow).

If you are not in a big rush then look around and make some silly offers. It wont hurt and you may get a good surprise somewhere!

lincroft1710

With £15K saved by the time you've deducted for solicitors, furniture etc. you'll probably be left with £12K, maybe less, maybe more. With £12K deposit you'll probably only get mortgage of £60K. I don't know what £72K will buy in Coventry, but in 2010, you may have £20K saved and thus could get bigger mortgage and no doubt property will be cheaper. Keep your eye on Rightmove - watch what prices are doing.

poppysarah

Wher you've got the full whack saved up, now is not a good time to buy. Well maybe.

Your 15% could be worth 25% next year.

before_hollywood

poppysarah wrote: »

Wher you've got the full whack saved up, now is not a good time to buy. Well maybe.

Your 15% could be worth 25% next year.

15k= 25% of a house? round here soon?

i'll be doing my happy dance :j :j :j :j :j :j :j :j

btw i'm in greater manchester

poppysarah

before_hollywood wrote: »

15k= 25% of a house? round here soon?

i'll be doing my happy dance :j :j :j :j :j :j :j :j

btw i'm in greater manchester

Maybe next year.

But tbh in my search there's a few houses under 60k. 3 months ago there were none.

95 under 100k now too.out of 260 that's not bad.

puddy

to OP, yes, check about what you could afford with the amounts quoted above for about 72k. for that amount of money now, what could you get and is it what you want. if not, then you will need to keep saving, if so, then you need to make a decision about whether you are happy to pay 72k for it now and have a home of your own now, or wait for about a year, pay about 65k for the same thing, have another 5k saved up but it means living in rented or with your parents for another year. the choice is yours within those parameters

bargain_hunter25

If you are aiming to purchase a house around the £70-£80k mark I would carry on saving until I hit the magic bracket that qualified you for a 75% LTV mortgage. Another year and you will have 20k saved up which will qualify you for a much better mortgage and possibly even better still if LIBOR rates ease up at all this year. Just keep a close eye on the market but also no harm in putting in a lower offer for a house if you find one you really cant resist.

waynebouk

Thanks for the info so far. Heres my position i live in rented accom at the minute paying 475 for a 3 bed house. I checked on money supermarket for a mortgage lets say 100k plus with my 15 so a 85k mortgage that gave me the result of a fixed mortage at 5.7 till 2011 at 530pm then its goes to the variable which is 4. at the minute. So is it worth it now to pay a little extra or keep on renting till late this year then look again i dont know. I could get a decent house for my 100k but i`ve already spoken to halifax and they said they could give me a mortgage of up to 125k. I have no bad credit history no outstanding debts. And i`m 24

waynebouk

well i`ve just did another search and i could get a discount mortgage paying 490pm over the term (25yrs) of the mortgage at a rate of 4.79. This is with my brother as a joint applicant. Now what am i meant to do with that start packing or forget about it?

markelock

wait.

unless it's the dream home.

wait.