My Journey as a First Time Buyer!

xsarahahax

brummybloke i love your replies they are making me giggle :-)

rob.. i agree with what everyone is saying, do it in your name for a while. I am 22 and have a friend who has just split up with her bf of 6 years.. they have a mortgage on a 3 bed house & are struggling to sell it. She has moved out but as both their names are on the mortgage, she is still having to pay for half etc.. Just be careful as things may seem rosy now with your gf, but you never know what will happen xx

beingjdc

Skyhigh wrote: »

We're not planning on moving after only 1 or 2 years, and on average market prices recover after 3-6 years after a crash and they always go up over 7 year periods.

Not to be a pedant, but

Average UK house price

Q2 1989 - 62,244
Q2 1996 - 53,032

We haven't had a real crash in a time of low inflation, I suspect that's what contributes to the 7-year myth, more than anything, it's not that houses always went up in real terms, it's that everything went up.

Skyhigh

beingjdc wrote: »

Not to be a pedant, but

Average UK house price

Q2 1989 - 62,244
Q2 1996 - 53,032

We haven't had a real crash in a time of low inflation, I suspect that's what contributes to the 7-year myth, more than anything, it's not that houses always went up in real terms, it's that everything went up.

Yes house price rises are related to the fact that...due to inflation..and costs, everything goes up in price eventually.
Although, our wages should go up as well at the same rate- hence the stand of living should maintain its course, but for most people, especially in times of recession, they don't get an matching wage increase - hence receive an overall 'cut' in affordability.

For the majority, this makes houses and other commodities more expensive (in relation to inflated cost of living).

What I will say again is that, in crashes even though house prices are low - its usually harder to get a mortgage. If you have a large enough deposit and can afford to take advantage - then fantastic
[For most people this just means waiting longer till prices recover and mortgages are more loose and easer to obtain, by then you should have a much bigger deposit, which is good overall.]

Although, I never liked the 100% or even 110% mortgages and still think anything over 90% is dangerous as hell

Saver-Rob

Thanks for continued replies.

No big news yet. I've been working alot, probably about 100 hours this week so it leaves little time for anything else. My 'saved properties' on rightmove is increasing weekly though!

sarastark86

Saver-Rob wrote: »

Thanks for continued replies.

No big news yet. I've been working alot, probably about 100 hours this week so it leaves little time for anything else. My 'saved properties' on rightmove is increasing weekly though!

and THAT'S why you have £39k by age of 22... good effort!

Saver-Rob

Yeh true.. it didnt come from doing a 39hour week unfortunately! Though I dont usually do quite this many.

ElectricSoup

We're buying at the moment (complete on Friday!) & have contributed unequally to the deposit, though will be paying the mortgage 50:50. We're not married & are having a Deed of Trust drawn up. It states how you'd split the house if you broke up (don't like to think about it, I know, but it can happen). It can reflect what you put into the deposit, what you pay on the mortgage, you can have a new one drawn up once she gets a job after uni - it can say anything you like really. Not particularly romantic, I grant you, but hopefully it'll be a piece of paper you never ever have to look at again!
Have a look at these:
http://www.oneplusone.org.uk/marriedornot/PropertyBuying.htm
http://www.questbrook.co.uk/trust.htm
Best of luck!
es

Saver-Rob

Thanks for that. Its something we may have to look into but a difficult subject to discuss!

ElectricSoup

difficult or not, its a mature discussion to have over a very big financial decision! like i said, the plan woud be that you'd never need to use it!!

fleenio

I am also a FTB, have saved up a substantial deposit. However my b/f does not have a deposit saved and I would need him on the mortgage to be able to afford a nice place for us both. Is it possible to get a contract drawn up if we were to put both our names on the mortage to say who owned what share in the house. For example I pay a 50% deposit and then we both share the remaning 50%, so i would have a 75% share in the house and he 25% and if we were to split up we would get the % share in the house if we were to sell?