First time buyers advice

wkitching

Hello there, I'm going to be looking at purchasing a house in the summer time with my partner. :silenced:

My partner earns 16k and I'm earning 20k. A total of 36k. Giving i have a good credit history and no debt, do you believe I'm being realistic in wanting to obtain a mortgage of around 120k? We have done well and saved 13k deposit so far.

I would like to add that we're both new in our professions and wage will rise, pending..

Kind regards,
Wayne

Xinpei

Hi there, perhaps check with some websites (banks, building societies, etc) what amount you can borrow up to. Typically, these are WAYYY over what you should realistically be looking at. To give you a general idea, the average loan to income ratio is fallen below 3.0 recently.

Good job with your savings so far. With approximately 10%, available mortgage products are not plentiful and rates are not very kind. So come summer time, when you got a bit more saved up, you should see a mortgage broker to see what they think of the market then. I heard mortgage brokers recommending a 15% deposit to get a good ish rate and higher chance of approval.

Good luck with your house hunting.

wkitching

Thank you for your kind words and advice.

I've been online to see what banks would be willing to lend. That averaged out at around 140k, but in all honesty i couldn't see a bank lending us that amount, can you?. I wouldn't take such a loan on. 120k is the maximum we would be willing to accept and we aimed to have between 15k saved up.

I'm having fingers crossed that we're in a good position.

Regards, Wayne

Tim_Nicholas

Might be worth waiting until the end of the year, and seeing what house prices do, according to some they are set to drop further... and by the end of the year, you will have a bigger deposit

wkitching

Good advice:T ...

Does our income seem realistic for the amount we would like to borrow?

example :

house costs 120k
deposit 15k
income 36k

Regards, Wayne

davidboon

I am new and don't much about property selling or buying. Please suggest me some more useful tips so that I can buy or sell property genuinely.

savemoney

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