First time buyer is it the right time now?

mbga9pgf

confused31 wrote: »

Hes full of crap, he says hes going to get a great mortgage deal, hows he going to get that with 55k on a 255000 pound mortgage, hes only got a 14% deposit, the blokes a clown,

Im a clown??? At least I can divide 55 by 255!!!

I am in a position to buy, but would have unfavorable rates at the mo. the 255K offer was on a prop worth 360K, if the sellers cant sell, its a long shot but they may get back to us in a few months time. If they dont, I havent lost anything. Unfavourable means fixed 5.65% for 10 years by the way, so hardly ball breaking.

The OP posted this

Is it a good time to buy? Can i get a bargain as nothing is selling? Are house prices likely to come down more if i wait?

I would say waiting 12 months was a pretty good answer to that question!

confused31_2

mbga9pgf wrote: »

right, for the slow chap up above in the room, here is some VERY BASIC mathematics... I know you struggle with big words, so I will go over this really really slowly for you so your brain can cope...

55/255 = 21.5%. Not 14%.

Currently saving 3K per month, so, by next crimbles, will have: 55+36 = 91K + interest, which, according to this wonderful thing called, wait for this, Microsoft excel, works out at 95.5K on a savings rate of 4.5% fixed for a year.

Add 5K LSAP loan (interest free paid off over 7 years) = 100K or another 1.5 months saving + interest = No LSAP and 40% deposit.

with 90K deposit, today I could go out and get this:

Coventry BS
Fixed 4.79% Fixed to 31/03/2014 4.79% 5% £1,037.46 £125,743.62 to 31/3/14: 4% Sum Repaid; Redemption Admin Fee £125.00 Fixed (not payable for last year)
5 year fix. 10 year fix at 5.65%.

thats 10K less than we will have saved/available. This also doesnt take into account any reduction in rates as a result of rates dropping this year.

Cunfused, has your brain ever been deprived of Oxygen for more than 5 minutes? Is this why you are confused?

you need to look at the actual sites and this is what coventry are offering to first time buyers, no good to you, didnt you want a 10 year fixed???

2 years and you will be on the vaiable till 2014 and a fee of over 1600 pound:mad:

4.99%, Fixed rate to 31.03.11Current Rate 4.99%Term4.99% Fixed rate until 31.03.11Followed by Standard Variable Rate until 31.03.14, current applied rate 4.99%.
Followed by Privilege Rate for the remainder of the mortgage, current applied rate 4.79%.
The overall cost for comparison is5.1% APR
Fees/Incentives
(Fees will not be refunded) £199.00 Booking Fee (paid on application)
£800.00 Arrangement Fee (can be added to mortgage)
FREE Remortgage Transfer Service
ONE FREE mortgage valuation to max. £650.00
Early Repayment Charges4.00% of the balance
stop using best buy sites, go to the actual sites

sympatex

mbga, people might read your comments a little more positively if you didn't have quite so many insults in them! Your points get lost in the pointless poo throwing!

It's impossible to provide an accuate 'opinion' for an anonymous person on the internet. The UK has had HPI at different levels region to region, and indeed street to street.

I read somewhere that the obvious indicator for when house prices are on the turn will be shown in volume of sales. when they start to rise you'll know affordability to an increasing minority is returning.

If the house for the original poster is affordable on one salary then they have found themselves somewhere they can live, ie a home. In terms of an investment perhaps it's not the best time as house price falls are still widely expected because of reduced volume of sales.

I wouldn't be as rosetinted about it as pinkshoes because if you make the wrong decision as a FTB you penalise yourself financially for a long time and it's not necessary because renting 6-12month AST's will provide the roof over your head (home) and flexibility to move when the time is right for that individual.

House price is an illusion, mortgage debt is real.

confused31_2

mbga9pgf wrote: »

Im a clown??? At least I can divide 55 by 255!!!

I am in a position to buy, but would have unfavorable rates at the mo. the 255K offer was on a prop worth 360K, if the sellers cant sell, its a long shot but they may get back to us in a few months time. If they dont, I havent lost anything. Unfavourable means fixed 5.65% for 10 years by the way, so hardly ball breaking.

The OP posted this


I would say waiting 12 months was a pretty good answer to that question!

tell me where you can get 5.65% for ten years ill check it out for you.????

you losing every week renting, i bet you landlord loves you, do you pay him the same day every month?????

sympatex

255k seems a strange number to offer being so close to the threshold.

housesitter

confused31 wrote: »

you losing every week renting

"Losing" less every month than the equivilent drops in house prices.
Plus since for the sensible, rent is often less than a mortgage anyway.
Saving more money by renting first then buying with a sizeable chunk of savings over the course of the mortgage than taking a 90%+ mortgage out and having it right here and now.

Renting is not dead money. It never was. :rolleyes:
Take the route of saving a big deposit up, then buying and being much better off after the mortgage is paid than having bought it with a 100% mortgage right away. Just do your sums right.
Some people on here seem incapable of understanding thats why some of the more savvy people do rent.
Those who don't need to buy everything now, now, now.

confused31_2

Im only trying to help him, we where all first time buyers one, the thing is all his frustrations are coming out because before with 55000 pound you could have borrowed nearly 500,000 pound, and on a decent rate,now to get the best rate with 55000 pound deposit you could only borrow about 80,000 pound, meaning he could buy a property for about 130,000 pound.

Nevermind hey, i know im a bit slow, but with my little bit of help i could save you a life of misery.

mbga9pgf

5K in fixtures and fittings! (they had a large aga).

tell me where you can get 5.65% for ten years ill check it out for you.????

http://www.fool.co.uk/mortgages/search-all-mortgages.aspx

Are you stupid enough to think just because I havent owned before you NEED a FTB mortgage? Because you dont! Those products are designed for low deposits/lower purchase prices that dont fit my situation.

Sympatex, I am to the point, however, I dont resort to using language like this from confused:

hes a fully fledged pxxck

I dont think you will hear of him again:T

Confused, I pay 430 quid per month for a 3 bed detatched quarter. Hardly lining my LLs pockets with gold is it?

Edit Why the heck would I want to borrow 500K??? Are you mental?

is that you Bruno?

http://uk.youtube.com/watch?v=NyPY6ymblHI

confused31_2

housesitter wrote: »

"Losing" less every month than the equivilent drops in house prices.
Plus since for the sensible, rent is often less than a mortgage anyway.
Saving more money by renting first then buying with a sizeable chunk of savings over the course of the mortgage than taking a 90%+ mortgage out and having it right here and now.

Renting is not dead money. It never was. :rolleyes:
Take the route of saving a big deposit up, then buying and being much better off after the mortgage is paid than having bought it with a 100% mortgage right away. Just do your sums right.
Some people on here seem incapable of understanding thats why some of the more savvy people do rent.
Those who don't need to buy everything now, now, now.

I agree totally, its not worth having a mortgage if you only have a 10% deposit, as the deals are no good.

but if you was a first time buyer and a 3 bed roomed house came up for 85000 pound and you were renting a three bedroomed house for 600 pound a week, you may as well buy if you have a deposit of 40% and can secure a low interest rate mortgage. your mortgage would be nothing compared to 600 pound.

I think its great that hes saved 55000 pound but that is no where near a good enough deposit to secure a 255000 pound house on a good interest rate, as soon has he realises that the better.

here a house for 85000, if you had a 40% deposit your mortgage would be 275 pound a month

http://www.rightmove.co.uk/property-for-sale/property-20219467.html?pageNumber=5&backToListURL=/property-for-sale/find.html?locationIdentifier=REGION%5E25923&minBedrooms=3&minPrice=70000&maxPrice=90000&radius=5.0&index=40&locationIdentifier=REGION^25923&radius=5.0&maxPrice=90000&minPrice=70000&minBeds=3

then you have got this one in a similar area for 575 pound a month rent

http://www.rightmove.co.uk/property-to-rent/property-24113309.html?pageNumber=1&backToListURL=/property-to-rent/find.html?locationIdentifier=OUTCODE%5E61&minBedrooms=3&locationIdentifier=OUTCODE^61&radius=0.0&minBeds=3

People just need to be realistic, and start at the bottom and work there way up.

mbga9pgf

People just need to be realistic, and start at the bottom and work there way up.

Why when I am on 47K gross?