My Journey as a First Time Buyer!

Dinah93

Sorry your offer was rejected Rob. Did the other house get permission to build on the tree?

If you personally feel now is the right time to buy for you, then no ammount of statistics is going to change that. You have a very healthy deposit behind you and you seem to accept that if worst came to the worst, you'd loose some of this but still be able to move.

Personally I'm aiming to buy in two years. I don't know what the market will be doing then and to a certain extent it is irrelevant, thats when we've pencilled in getting married, and therefore that is when I feel ready to sign a mortgage with another person.

I think it's a good idea to buy a house needing a bit of work doing to it. A older house also protects you to certain extent against some falls. The girl next to me at work bought a 3 bed semi new-build with her bf in October 2007. They've enjoyed living together and are now engaged, getting married next year. However, their house has fallen in value by over 30%, and eaten up their entire deposit, and they are unable to remortgage at a reasonable rate. It is causing both of them undue strain, especially since our 'safe as houses' jobs are under threat. In addition the 3 other houses on their street are all up for sale, all bought within a few months, by couples, one broke up within 2 months of moving in together and still can't sell it over a year later without declaring bankrupcy. The couple to their right the hubby was offered a promotion which he's eventually had to turn down as they can't sell or rent out the house and make the figures match up, and the other couple are having a little suprise in the form of twins, and they can't fit the new borns in with the two older kids they already have. I'm not saying don't buy with your gf, only you can make that decision, I'm just saying be aware of all the things that can happen that mean you might need to move.

I'm impressed by your deposit, I've just finished clearing all my student debt and in the last month have started saving towards a house deposit.

Please, please don't think this question rude, but if you are committing to buying with your girlfriend, and are convinved she's the right one for you and your future is together, why is she a girlfriend not a fiancee? I consider buying a house the biggest commitment aside from having kids that there is, but I won't do it until I'm married simply due to the legallities involved, and wanting to buy a house to become my family home, not just to own one rather than renting. I don't think I've put that very well and I apologise if it comes across as harsh/short sighted etc.

Saver-Rob

Oh no, dont bring up about an engagement - she looks at this thread from time to time!

But in all seriousness, I didnt and dont want to get engaged until after we have moved out and are living together. I dont know but it seems almost childish and embarassing to say 'we're engaged, and by the way we both still live at home with our parents'!

As for the deposit, we have another decision to make. She has had her student loan for this year and it is coming up to the time when she can pay it back. She has the money in full, aside from our savings pot. So the question is now whether to put this extra £5800 into the savings we have (and by the end of this month have the best part of £65,000 between us) OR to just pay the student loan off in full when she can. Theres pro's and con's of both options and I'm sure most people can see them for themselves.

So anyhow, the way we see it is that our position gets better every month that passes by. So yes, disappointment regarding not getting the house we wanted (yet?) but also every cloud has a silver lining - it will mean we have a fair bit more cash to play with in the coming months.

PS: And regarding the first house with the tree, no, the developer did not buy it (he must have had a negative reaction by planners) but it ended up selling, I believe, to another young couple. I am keeping an eye out for signs of work on the house as I go by!

Dinah93

Lol see I look at it the complete opposite way, I'm very traditional and I look at my friends who live together first and think it's taken all purpose of getting married away! Myself and my other half live with my parents since he moved from Ireland 4 months ago, and we can't wait until we can set up our own house and family, but we won't be living just us until we're married.

I'd definitely use the money off the mortgage rather than the student loan. The loan technically never gains money as it is linked to RPI (or CPI, I forget which), while your mortgage obviously is a huge bundle of interest-earning fun. Plus if she earns below a certain threashold or were to stop work to look after your kids she wouldn't have to pay it, while you're always going to have to pay the mortgage so you might as well make it as small as you can.

Just my way of thinking anyway x

blunt_crayon

Rob, do you and your gf know that as of September the interest rate on student loans is **0%** ?? :j

http://www.moneysavingexpert.com/loans/student-loans-repay

I know that a student loan can feel like a burden that's hanging over you, and it's tempting to clear it just to get rid of that feeling, but a mortgage is a financial burden too, and you will end up paying far more interest back on a mortgage than you will on a student loan, so it makes sense to me to use the money to reduce your mortgage. Or just keep it in a separate account to circumvent the need to borrow money for, say, home improvements, or a car (or a wedding ).

Really impressed by how well you're doing by the way - you should become a MSE mascot or something!

Saver-Rob

Thanks alot for your message and the link - I didnt know that.

We have to discuss this student loan thing. I see it from both sides really but I think that I am leaning towards using the money for the mortgage!

nervousftb_3

hi rob,

been reading your thread with great interest as i was in an identical situation just a few weeks ago! (i'm a fully funded student, and my boyf is in full time employment, we're FTB's) so i just wanted to say a few things:

1) definitely go ahead and buy with your gf if you feel it is the right thing for you! my boyf and i have just bought our first house together, and never once have we doubted the decision. we had to choose: marriage or house? (couldn't afford both!) we decided we would feel pretty daft being engaged but still living with parents, and we can get married whenever we want in the future.

2) tell your girlfriend not to pay her loan off! what the other posters have said is correct; student loans are 0% at the moment (should actually be at -1.4% or something but the govt have cheated and are fixing it at 0% for now :mad:) it is the cheapest loan she will ever have so plough your savings into a house deposit instead, you will be much better off in the long run!

good luck with everything, and i'm sure your perfect house is out there somewhere - we were lucky enough to find ours a few months ago and moved in last month :jand all the stress, hard work, and living like a peasant is finally worth it...!

Saver-Rob

Thanks for your post. You give good advice and we'll probably do that regarding the student loan. We have decided we are getting a place together, despite what some people say. You're only here once!

Saver-Rob

Well I think it is about time I made a big update and let you all know (those that are still interested) that we have actually found a place and had an offer accepted. We have been very fortunate to have been offered a relatives house at a good price while she moves on into a bungalow (she has had her offer accepted also). So we are getting a great deal on a place that ticks all of the boxes on our list. I am loathed to jinx it by saying too much as it seems too good to be true right now, but we are booked in with our mortgage company on Tuesday to get things underway (it was already approved in principle).

I wont post any photo's or descriptions yet but keep posted and I'll update as and when. Fingers crossed things work out.

suisidevw

Hi Rob,

Congrats, that's awesome.

My wife and I (we didn't live together before we got married!) have just put an offer on our first house, see thread a few below I think and it's such an exciting time. we don't have quite the money you guys have for the deposit (around £35k) and will be borrowing more but we are comfortable with our repayments/month and the house as scope to add huge value to it. (We should be in it for about 7 years)

Keep this updated!

nervousftb_3

great news! :T good luck with it, i'll be keeping my fingers crossed for you!

i was exactly the same as you not wanting to jinx our purchase, the only people that knew about it were my parents until we actually had the keys in our hand - it was a long 3 months of not being able to tell anyone!! keep us updated when things start moving for you.