First Time Buyers - Could we do it?

MattyB801

Hi all you MS Experts,

I'm looking for a bit of first time mortgage advice from one of you knowledgeable lot, for which I'd be very greatful! My partner and I currently rent a house near Ely, Cambs, but we are now looking to move into Ely. We could obviously rent again in Ely, but it would be nice to own our own place and stop paying someone elses mortgage!

I earn 25000 and my partner 19000, and are both in secure jobs with wages set to rise. We could manage a deposit of 13-15k, and from looking around, £150k would get us a fairly nice new build house. Therefore, we'd be looking at a 90% LTV mortgage, which i know there are a few of still available. Obviously we do have outgoings, but could still manage £750 a month to pay the mortgage, which i think should be sufficient.

With the way things are, what do you guys recommend? Keep renting and see how things go? Talk to a bank about what they could lend? We're really open to suggestions, and although we think we know the basics, ANY help/advice is greatly appreciated.

Matt

Robert_Sterling_3

"I'm looking for a bit of first time mortgage advice from one of you knowledgeable lot, for which I'd be very greatful! My partner and I currently rent a house near Ely, Cambs, but we are now looking to move into Ely. We could obviously rent again in Ely, but it would be nice to own our own place and stop paying someone elses mortgage!"

Good thinking.

I earn 25000 and my partner 19000, and are both in secure jobs with wages set to rise. We could manage a deposit of 13-15k, and from looking around, £150k would get us a fairly nice new build house. Therefore, we'd be looking at a 90% LTV mortgage, which i know there are a few of still available. Obviously we do have outgoings, but could still manage £750 a month to pay the mortgage, which i think should be sufficient.
You might get 90% of the valuation of the property rather than 90% of what you have to pay for it.

With the way things are, what do you guys recommend? Keep renting and see how things go?

This might be a good idea if house prices continue to fall.

Talk to a bank or a Building Society about what they could lend?

Why not? You seem to know what you are doing. read posts on MSE and improve your knowledge of the subject of "buying a house".

LittleMissAspie

I thought the majority of lenders require 25% deposit for a new build.

Besides, to pay back £135k over 25 years at £750pm means you need an interest rate of 4.5% maximum. Even if you bought a non-new build, with only a 10% deposit you are more likely to get a deal for around 6%. Making repayments approx £880pm.

http://forums.moneysavingexpert.com/showthread.html?t=1519479
There seems to be some deals for 90% LTV on new builds, they are more like 7-7.5%. That's £965+ per month.

beecher

I thought that too LittleMissAspie - I don't think there are any 90% LTV deals for new builds. Also, the OP would have to budget for repayments of more than £880pm, just in case.

adr0ck

LittleMissAspie wrote: »

I thought the majority of lenders require 25% deposit for a new build.

Besides, to pay back £135k over 25 years at £750pm means you need an interest rate of 4.5% maximum. Even if you bought a non-new build, with only a 10% deposit you are more likely to get a deal for around 6%. Making repayments approx £880pm.

http://forums.moneysavingexpert.com/showthread.html?t=1519479
There seems to be some deals for 90% LTV on new builds, they are more like 7-7.5%. That's £965+ per month.

noooooooooooo

people please stop posting such cra........

you need 25% deposit for new build flats only

new build houses are treated just the same as existing houses

beecher

adr0ck wrote: »

noooooooooooo

people please stop posting such cra........

you need 25% deposit for new build flats only

new build houses are treated just the same as existing houses

http://forums.moneysavingexpert.com/showthread.html?t=1519479

this poster's lender doesn't treat new build houses the same way as existing houses. Lenders in general seem to be wary of new build houses - and who can blame them? If you do get a 90% LTV mortgage on one, chances are you will be in negative equity fairly quickly in my opinion.

MattyB801

Hi - Thanks for all your replies!

Sorry, my mistake, i've inappropriately uses the term "new build". What i meant by that was a sub-5 year old house, which we would be purchasing as we would any other house. It wouldnt be a brand new home.

Either way, it seems from what you guys have said, it may be worth just holding out for now....my early calculations are obviously a little out, and so it may not be a viable option at the moment. We'll continue renting, as we'd only be looking at £650 a month, and that gives us the option to keep an eye on the market and what have you.

any comments or suggestions in the mean time are still appreciated!

Thanks. Matt

Phill_555

Matty it's a no-brainer! Rent for cheaper and save more for a deposit (less interest paid in the long run and better interest rate on your future mortgage) when interest rates are going down and so are house prices...