First time buyer is it the right time now?

pinkshoes

jenjade wrote: »

Wow thanks for all your help i could get a 10% deposit

COULD get a 10% deposit? Do you mean you have £16k sitting in the bank already??

Now is potentially a good time to buy if you have a good credit rating, no other debts, and a 10% (or more) deposit.

At least buying now, you can take advantage of some people desperate to sell and get a really good deal, plus as there's many more sellers than buyers, you can have your pick, and take your time over your decision.

Prices now might not be rock bottom, but when the prices look like they're not going any lower, there will be 1000s of buyers no doubt waiting for this, then stepping back in to buy, so you will have a LOT more competition (which knowing this crazy country will then start pushing prices back up again!). No doubt the tabloids will start a frenzy rush to buy property again! :rolleyes:

mbga9pgf

Now is potentially a good time to buy if you have a good credit rating, no other debts, and a 10% (or more) deposit.

Now is a ridiculously stupid time to buy a house if you are in the above situation.

Prices now might not be rock bottom, but when the prices look like they're not going any lower, there will be 1000s of buyers no doubt waiting for this, then stepping back in to buy, so you will have a LOT more competition (which knowing this crazy country will then start pushing prices back up again!). No doubt the tabloids will start a frenzy rush to buy property again! :rolleyes:

No they wont whilst prices are falling 2% per month. If you have a good deposit and a secure job, there will be plenty of supply. I wouldnt worry either, as this crash will follow the last crash, with prices leveling for a good 2 years before they start making slow gains. Bearing in mind the state of the economy, I wouldnt mind that it probably be significantly longer than that.
Search this forum. Lots of similar questions within the last few days telling you why.

currynchips

My IFA said on Friday to completely forget about fixed rate mortgages, as an FTB with 10% deposit I should only think about short term trackers. Currently there's nothing available for me, but he's ringing again tomo after the banks follow the rate change.
You are not in a perfect position or perfect time to buy. You are in the perfect position to find your ideal house.

piggeh

Why should you disregard fixed rate mortgages? Seems to me that they're a sensible option even if the rate ends up being 1% higher?

besonders1

I disagree that if everyone waited that there would be buying fenzy. How can people get mortgages if there are not jobs and the bank wont lend?

currynchips

piggeh wrote: »

Why should you disregard fixed rate mortgages? Seems to me that they're a sensible option even if the rate ends up being 1% higher?

I think probably because rates are fully expected to go down again in February, and many believe it could go as low as 0.5%. Lenders play slow catch up on the rates so should they stay below 2%, trackers follow immediately, fixed do not.
The best fixed FTB rate last weekend was 6.35%.

piggeh

Thanks - when I went to a IFA in July the rate I was given on the market was 6.8% so I guess they haven't dropped much since then despite the rate cuts

downs523

currynchips wrote: »

I think probably because rates are fully expected to go down again in February, and many believe it could go as low as 0.5%. Lenders play slow catch up on the rates so should they stay below 2%, trackers follow immediately, fixed do not.
The best fixed FTB rate last weekend was 6.35%.

britannia bs do 5.69% fixed rate for 1st time buyers and normal buyers with 10% deposit, fees are 565 i think. this is the one im going with.

northstar23

brit1234 wrote: »

Don't buy for at least six months. Price falls are accereating. With a massive 2.5% fall last moth alone it shows the market has still along way to fall. When the price falls get 0.5% falls for a series of months then you shouldn't loose out too much.

We are likely to see a 25% fall this year alone based on the lending conditions and I would save hard in the mean time.

Have to disagree... the Royal Institute of Chartered Surveyors predict a further 10 - 15% price drop before the market bottoms out in 2010.

I've about to buy myself... there is no market activity in my area and I'm confident of securing the property I want at a price that I believe offers value.

The problem with waiting and waiting is that its a hell of a poker hand to play... my main worry is that when the price falls reach a certain point that people with money decide to come back in we'll experience a bull run when everyone returns at once. Prices then rise in the short term and I'd loose out.

As to people saying that now is a daft time to buy if you have a sound financial base... surely the leverage this allows you to exert makes it a good time to buy? I'm planning to offer substantially less than the asking price on the property I want on the grounds that I'm the only buyer in the marketplace... either take my price or my offer will be less in 3 months time.

bob79

currynchips wrote: »

My IFA said on Friday to completely forget about fixed rate mortgages, as an FTB with 10% deposit I should only think about short term trackers.

This is the kind of advise that got us in this mess. If you buy now with a 10% deposit, you have a good chance of being in negative equity for the next 7 years or so. That means you'll be on Standard Variable Rate for years after that short term tracker expires. The SVRs of the big banks are low now, but even now those of e.g. smaller building societies are not. What if a Tory government does the same as their hero Thatcher did in the 80s recession and puts the interest rate up to close to 20%? You'll be f*cked.