Help! First time buyer needing advice

Rebelgirl

Hi all,
Well i have been waiting for ages to make athe first step on the property ladder, last week after breaking up with my long term boyfriend I found myself back at home for first time in nearly 10 years and I've decided to take the plunge and think about buying. My income is 35k per annum and i have no loans outstanding, however i dont have much savings either. I have good standing with the creit union and could get money from them as a deposit, Is this allowed? I am looking for a small house or apartment, something in the 150k asking price mark so would only have to borrow 140k ish and 10 from credit union. Any info or help would be grately received.
Thanks

Obukit

To get a competitive mortgage deal most banks want significant deposits atm - £10k buying now will be unlikely to protect you from negative equity and, in the somewhat unlikely event you're offered a mortgage, you will certainly be paying a premium for that risk. I'm not sure what your credit rating is but I suspect if you're using a credit union it's not that good at the moment?

£35k is a good salary - my advice would be to save up as much money as possible - stay living at home if you can and in a short space of time you'll have a fair amount stashed away. With property prices dropping at the moment, even if you have to rent you'll still be quids in.

I know at the moment if there's lots happening in your life it can be tempting to make rash decisions but I really think borrowing £10k at 25%-odd APR will be a decision you would really regret in a couple of year's time.

Swipe

If you are looking at £150k houses you will need a £15k deposit as a minimum. I'm not sure borrowing for a deposit is a good idea either. Might be worth saving for a deposit from your wages and buying later in the year instead when prices may very well be lower.

Rebelgirl

I have no problem credit wise, have had loans with banks and no problems. I know it would be better to save for the deposit but that feels like ages away! I'm just impatient!!!!!
I have spotted a house very near to where i work, with an asking price of 160k, but i have been told 150k would be accepted.
I suppose there will be other houses later on in the year.
But do you think if i had a deposit, I would find it ok to get a mortgage on 35k on my own? Thanks

brit1234

Borrowing the deposit is crazy (100% mortgage), I'm sure the bank wouldn't allow it if they found out. With prices falling so much you will be put straight away into negative equity especially as you have no deposit.:eek:

You are in the ideal position to save at home, let prices bottom out while you save. Then you need less deposit because prices have reduced and banks don't have to factor in further big price falls.

poppysarah

How long have you had 35k salary? You need to save massively for your own deposit before you think about buying a house.