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What reason for a first time buyer to jump in now?

andy_c_c
andy_c_c Posts: 7 Forumite
in House buying, renting & selling
When the bank of England has alread announced further intrest rate cuts! I am rather comfy renting now, but have been tempted with the current rates + cheaper/more realistic house prices to buy my own place. However why would I bother jumping in now when just today the bank of england has said more rate cuts to come at least, sure has put I stop to me thinking about it again for a while (I'll just wait more while intrest rates go down, house prices go down, and my deposit grows!).

So why would you get on the first run of the ladder right now if your a first time buyer given that said by the BOE today?
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Comments

  • poppysarah
    poppysarah Posts: 11,522 Forumite
    Can you get a mortgage. Do you have a deposit. Are you insane?

    You've got to answer honestly. :)
  • Cat695
    Cat695 Posts: 3,647 Forumite
    buy if your buying a home.......I wouldn't buy if you want to make a fast buck

    Make sure your offer makes you blush

    but be prepared for your house to fall in value for at least a few years....but as I said if its a home then it doesn't matter, because I'm sure the bubble will slowly inflate all over again.

    Us humans never learn
    If you find yourself in a fair fight, then you have failed to plan properly


    I've only ever been wrong once! and that was when I thought I was wrong but I was right
  • _bankrupted
    _bankrupted Posts: 179 Forumite
    Maybe I am reading your post incorrectly. You imply that an announcement to cut rates further in the future is a factor that will STOP people buying today.

    Did you mean that? When the reverse is true? Are you fixated on fixed rate mortgages
  • andy_c_c
    andy_c_c Posts: 7 Forumite
    poppysarah wrote: »
    Can you get a mortgage. Do you have a deposit. Are you insane?

    You've got to answer honestly. :)

    Only put my details in online (not been taking it further yet) and the computer said yes :)

    I have about 25k deposit, and been looking at places around 80/90k (fair few of them now a days which are really nice imo)

    Nop not insane.
  • ~Beanie~
    ~Beanie~ Posts: 3,043 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    If I had the money for a deposit and saw a house I had fallen in love with, I would buy. I'm not looking for an investment, I'm looking for a home so although I know I would probably be in negative equity within a week, I wouldn't care - I wouldn't be moving anytime soon anyway.
    :p
  • confused31_2
    confused31_2 Posts: 1,272 Forumite
    andy_c_c wrote: »
    When the bank of England has alread announced further intrest rate cuts! I am rather comfy renting now, but have been tempted with the current rates + cheaper/more realistic house prices to buy my own place. However why would I bother jumping in now when just today the bank of england has said more rate cuts to come at least, sure has put I stop to me thinking about it again for a while (I'll just wait more while intrest rates go down, house prices go down, and my deposit grows!).

    So why would you get on the first run of the ladder right now if your a first time buyer given that said by the BOE today?

    you wont get that much of a lower rate next month, maybe a little but because your a first time buyer i dont think it will make much difference, as most first time buyers want fixed rates and they havent really fell that much.

    The only people who will benefit will be on SVR or trackers and i dont think first time buyers wil go onto these as they want security.
    I am not a Mortgage Adviser
    You should note that this site doesn't check my status as not being a Mortgage Adviser, so you need to take my word for it. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • andy_c_c
    andy_c_c Posts: 7 Forumite
    _bankrupted wrote: »
    Maybe I am reading your post incorrectly. You imply that an announcement to cut rates further in the future is a factor that will STOP people buying today.

    Did you mean that? When the reverse is true? Are you fixated on fixed rate mortgages

    Yea, if we get like the states, with 0% (mortgage rates prob being around 2.5/3% at a guess), wouldnt a fixed one for 5 years be a good spot to be in?
  • Cat695
    Cat695 Posts: 3,647 Forumite
    andy_c_c wrote: »
    Yea, if we get like the states, with 0% (mortgage rates prob being around 2.5/3% at a guess), wouldnt a fixed one for 5 years be a good spot to be in?


    Fixed rates follow LIBOR rates and not the BOE rate......so if your gonna fix then get the BOE rate out of your head.
    If you find yourself in a fair fight, then you have failed to plan properly


    I've only ever been wrong once! and that was when I thought I was wrong but I was right
  • _bankrupted
    _bankrupted Posts: 179 Forumite
    I will be buying with you then if I get 5 years fixed at 0%!
  • poppysarah
    poppysarah Posts: 11,522 Forumite
    andy_c_c wrote: »
    Only put my details in online (not been taking it further yet) and the computer said yes :)

    I have about 25k deposit, and been looking at places around 80/90k (fair few of them now a days which are really nice imo)

    Nop not insane.

    Sounds ok then. get viewing. Buy something nice. Or that can be nice.
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