First time buyer- scared and need some help!

n0sferatu

Thanks for all the advice, guys.

Maybe I can afford to wait a while... If I'm this nervous about it all, then it's probably not 100% the right time.

I feel bad about letting the vendor down now that we've agreed an offer... But that was only on Friday afternoon, so hopefully it wont be that bad

Cheers again everyone.

QTPie

mark5 wrote: »

In response to pizzagirl a recession can be a very good time to make purchases if the buyer is in a strong enough financial position themselves.

Doesn't sound like they are... doesn't sound as though they even have the deposit together yet...

I would also say that a 3 year fixed rate is possible the worst possible choice at the moment... IF interest rates go up (nobody knows for certain, but they could well rise and - who knows - it could be quite steep), then in 3 years things could be VERY different (and the OP could come to the end of their fixed period when interest rates are high) - it could be very nasty. At the moment, I would want a longer term fixed rate (7 or 10 - at least 5, but probably longer).

OP, sounds like you would be very right to pull out. In this climate, I think that you need to be VERY sure that you can afford what you are purchasing. Pull out first thing tomorrow with humble apologies to the seller (as a seller who has had buyers pull out - but a month into a sale that they wanted to go through in 7 weeks - I can say that it is very annoying when someone pulls out): best to pull out quickly (less hassle for all parties).

QT

Ephemera

I'd agree with QT, IMHO prices still have a way to go down... job losses are still increasing and the economy is still in contraction so unlikely that house prices are going to stabilise before next year at the earliest. Yep, I'm a bear and proud of it lol.

Pulling out now will mean you can save even more for your deposit, giving you more leverage later to secure an even better mortgage deal. Also the longer you leave it the more annoying it will be for the poor vendor - would you want to be in their shoes? (Had it done to me too...!!!!)

All the best no matter what you do...it is your choice after all.

Eph. x

lovethymini

This has been an interesting discussion to read; we're selling at the moment and it seems the FTBs have come out of the woodwork around here, saying they wanted to buy last year but held off.

When I bought my first pad I was very nervous, but unlocking my own front door that first time made me feel so happy, it really felt like home. I didn't worry about the housing market too much as I planned to stay there. It matters more if you're only doing it for short term or you're stretching yourself too much financially, IMO.

Good luck!

blunt_crayon

i am a bit confused why you have 'a few months' to save a deposit, but you are buying now....? this makes me think you're buying off-plan or from a developer? if this is the case, be very very careful... there are numerous threads on here where people bought properties off-plan for, say 200k, with a 10% deposit paid upfront. fastforward 18 months and the property is now valued at 150k, and a 20% deposit is required so the mortgage company will only lend 120k... where do they raise the 60k shortfall, as the builder will not allow them to break the contract which stated they would pay 200k? this is an extreme example but not that uncommon. obviously prices are very very unlikely to drop by 25% in a few months but you need to factor in potential drops in valuations if you are buying now but arranging a mortgage in a few months' time...

JayZed

Given that the OP is buying a period conversion, I doubt that it's off-plan or from a developer. I assume the "few months" that s/he anticipates are the time between now and exchange/completion.

N0sferatu, unlike some of the people above I think that this is not a bad time to buy, that £235K for a 2-bed in Hackney is not a bad price, and that a 3-year fix is not a bad option.

But it does sound as though you're really stretching yourself. Buying a house is always more expensive than you think it's going to be. You've got the deposit, mortgage fees, stamp duty, valuation fees, solicitor's fees, buildings insurance, moving costs, buying white goods and furniture... and then you find that your first mortgage payment is much bigger than you're expecting (because it normally covers more than a month).

I would aim to have in hand at least a couple of grand more than you think you're going to need. If that's not achievable (and it sounds as though it isn't), maybe you want to hold off or set your sights a bit lower.

Emma_Salmon

I bought my first house 3yrs ago now and my advice would be to go for it once you are sure of all your incomings and outgoings, get a good spreadsheet together, have a seperate account for all your bills and my advice would be to look into the rent a room scheme. Not only will you be a little less worried about the bills but it saves you rattling around in the place on your own.

Best of luck!

haziec

My advice is to get a quote for the conveyancing, then work out ALL costs, stamp duty, mortgage arrangement fees etc etc and then don't forget to add payment protection/house insurance etc to your monthly costs.

To be honest you need to look at the figures in black and white, the sale could go through very very quickly and you could end up with a legal bill and nothing else if any of your clients have payment problems.

I wish you all the best in your decision which as the other posters have said, has def. got to be made quickly. You might need the EA to find you a similar property in the future so better to show yourself in a good light and not a time waster.

If you are having doubts you are probably thinking with your heart and not your head, give it a lot of thought and good luck!

Entertainer

How much is your deposit and what percentage of your buying price is your mortgage? (someone has already asked you this but you didn't answer.)