Oh Look! Another First Time Buyer!!

BoredOfSavingNow

Evening Ladies and Gents,

My reason for posting is obviously to get some advice from you lovely people. Some of it I realise is common sense but I thought I'd put this out there anyway as I'm on a week off and stewing on things a bit...

My situation is as follows:

25 years old and been renting reasonably happily till about a year ago.

Earning 25k basic but regularly acheive 1k min extra a month in bonus and a potential 6k yearly bonus so a fair OTE (at present anyway) is 40k (I do work hard to make sure I hit the bonuses) and my job is secure

Savings of 10k and saving at at a rate of 500 - 1000 per month, know I need as much as possible to get a decent rate and hoping to have 15k - 20k by the time I move

Loan 7.5k for my car (200pm)

Currently living with my dad 150 per month but getting very fed up with the lack of freedom (although its obviously much cheaper than renting)

I would prefer a 1-2 bed house rather than an appartment but I know I cant afford to be too fussy

I have a looked at a few new builds as they had open days and the 75% 25% schemes are quite tempting but apart from a home I would like to invest some money into the property to improve the value and obviously that is not possible on a new build (plus if I go on a scheme I hear Im unlikely to be able negotiate prices)

I would like to move within the next 6 months or at least under a year, and I need to know...

How much should I be looking to spend in total?
What should I estimate the monthly amount for mortgage to be?
How much more deposit do I need?
Would I be much better off buying with a friend?
What % (APR/AER no idea?!) do you think I will be looking at on a mortgage?
Tracker, fixed, variable?

Im thinking Im looking at about 120k minus the deposit....

It would be good to hear from people who are or have been in a similar situation, or anyone with some good advice.

Thanks in advance:money:

poppysarah

Save like a looney.

Is your car loan one of these they give you a "pay it off now" price?

Mini_Bear

Wow you earn the same as me at 40k but i am able to put away a lot more (around the 1500-1750/mth mark). Dont get me wrong i have to scrimp and save but i hav managed to save over 50k living like a frugal student and hope to buy a property outright in cash in the south east in a few years.
My advise would be to try to save harder, you dont just want the minimum 10-15% deposit but a massive chunk to make it worthwhile living with ur parents - i did this for quite a while!
My advise would be do not buy with a friend, unless you currently live with one and know all their habits (particularly with money). Buying a property together can cause massive arguements unless you are going to use the property as an investment and work together to do a place up and sell. But i feel these profits are well and truly over.
I wouldnt rush to make the biggest financial commitment of your life. Watch the prices drop, you are a first time buyer and will have big negotiating power wen you do decide to buy.
Good luck!

pawpurrs

Hi there, I am from your neck of the woods, so to speak.
I wouldnt buy with a friend, as at your age people will want to move in with OH etc, and it gets complicated when one wants to move on.
With 40k salary, and that size of deposit you will be looking at about 150k max...... Not easy for T.wells, perhaps consider a starter home in Heathfield, Crowborough, Paddock wood or Hawkhurst, there are a couple of nice places in that price range in Robertsbridge too and thats on the train line to T.wells. It does depend what you want though, you may be happy with a flat for example. Theres a nice cottage that needs renovation that has just come on in Robertsbridge for 120k.
Once you have decided to definetly buy go and see a mortgage broker and they will advise you regarding the best deals, and go from there.

BoredOfSavingNow

poppysarah wrote: »

Save like a looney.

Is your car loan one of these they give you a "pay it off now" price?

Im trying to.... Unfortunatly this year I have my Girlfriends 21st, my Sisters 21st, my Mums 50th and my Dads 60th! (All of which understand that Im saving but they're big birthdays and I'm not going to be stingy

I can pay off my car loan when I want I think but it is at quite a good rate 7.9% although Im not sure if it lowered with the interest rates?? (prob not! But worth checking) Should I pay off the loan with the amount I have saved? Obviously that'll mean that Im almost starting my deposit again...

jezebel

I would suggest at least 20% deposit in the current climate, of course that depends on what you can afford to borrow - I would think you would get at least £100K on your basic (4x) but would not advise using anything other than your basic as evidence as obviously this extra isn't guaranteed.

I'd also second pawpurrs and Martin to speak to a mortgage advisor (fees free, whole of market as Martin would say )

BoredOfSavingNow

Mini_Bear wrote: »

Wow you earn the same as me at 40k but i am able to put away a lot more (around the 1500-1750/mth mark). Dont get me wrong i have to scrimp and save but i hav managed to save over 50k living like a frugal student and hope to buy a property outright in cash in the south east in a few years.
My advise would be to try to save harder, you dont just want the minimum 10-15% deposit but a massive chunk to make it worthwhile living with ur parents - i did this for quite a while!
My advise would be do not buy with a friend, unless you currently live with one and know all their habits (particularly with money). Buying a property together can cause massive arguements unless you are going to use the property as an investment and work together to do a place up and sell. But i feel these profits are well and truly over.
I wouldnt rush to make the biggest financial commitment of your life. Watch the prices drop, you are a first time buyer and will have big negotiating power wen you do decide to buy.
Good luck!

Well if I convinced one of my mates to buy with me I know he's in a pretty good financial situation and I also rented with him for almost two years so know we get on ok, so it might be worthwhile..all considered though I would prefer my own place (dont we all?!)

I guess I can as you say 'save harder' and it sounds like your doing better than me! But reasontly had to pay out 600 on my car plus other bits its not easy.

20% should be my goal I guess.... still consider that to be another year (fun fun :cool:)

BoredOfSavingNow

jezebel wrote: »

I would suggest at least 20% deposit in the current climate, of course that depends on what you can afford to borrow - I would think you would get at least £100K on your basic (4x) but would not advise using anything other than your basic as evidence as obviously this extra isn't guaranteed.

I'd also second pawpurrs and Martin to speak to a mortgage advisor (fees free, whole of market as Martin would say )

Oh yeah and I've tried London and County...is it just me or are these guys not that helpful if you havent made an offer yet!

BoredOfSavingNow

Viewed a couple of properties today....

1 of which I especially like

1 bed house, excellent condition throughout,
Reasonably large garden
nice area
£150k - £160k

I spoke to the vendor and they are after a quick sale.
They have rejected one offer
They have accepted another offer (I guess Im not allowed to ask how much for?!)

The people they accepted the offer from have not got a mortage together yet and are going through a housing association (would this be a long process?)

I am going to see the mortgage advisor linked with the EA tommorow as well as my bank, and will prob speak to another MA as well.

What price do you think I should go in at? Do you think I can afford it based on the info at the top of the post?

Any advice greatly received :money: