Went to see independent mortagage advisor (FTB)

redrabbit29

He advised buying now, or at least before December when the stamp duty holiday will end.

My GF and I have saved a total of £16000, although we aimed for £30K. I started to get worried that I was leaving the house buying too late, the advisor said it was probably best to buy now, although we are about £2K short - should be able to get this amount, but it would mean we would have £0 in the bank.

The houses we are looking at are about £170-£180K, so we are right on the border of having 10%. Do you think I am making a huge mistake by waiting one more year, when I will have more money in the bank? Or do you think I should dive in now?

telfordwhite

We're in a recession, people are losing jobs left right and centre....

I would be surprised if house prices are going to rise any time soon. At worst (for you) I would say house prices in a year will be similar to now so you won't miss the boat if you wait 12 months.

moneysavinmonkey

redrabbit29 wrote: »

He advised buying now, or at least before December when the stamp duty holiday will end.

My GF and I have saved a total of £16000, although we aimed for £30K. I started to get worried that I was leaving the house buying too late, the advisor said it was probably best to buy now, although we are about £2K short - should be able to get this amount, but it would mean we would have £0 in the bank.

The houses we are looking at are about £170-£180K, so we are right on the border of having 10%. Do you think I am making a huge mistake by waiting one more year, when I will have more money in the bank? Or do you think I should dive in now?

Bear in mind the mortgage broker makes money off you taking out a mortgage and they will want to get their hands on that income now rather than in a years time..... they are a mortgage advisor not a housing market advisor!

You currently don't have a 10% deposit, never-mind any money for fees (I'm sure the mortgage broker advised you that you could add these onto the mortgage = more commission for them!) or furniture or unexpected costs etc. I do think that it is irresponsible of them to give you such advice.

Why put yourself in a precarious situation financially just to avoid stamp duty?
(the current stamp duty holiday has already been extended once so they may put it off again) Last time I looked house prices were still falling (albeit maybe slower) so you aren't really loosing out by waiting anyway. Keep an eye on the market and make your move when you are ready.

Rick62

And property at £175k that hasn't sold by December will be desperate, so you'll probably get the extra £2k off anyway.

suze_g

One thing I've learnt through my property buying process is practically no one is acting in your best interests.

westv

Why is is that the people who say to buy now often have something to gain - like estate agents etc? Strange that!

Georgie4

Rick62 wrote: »

And property at £175k that hasn't sold by December will be desperate, so you'll probably get the extra £2k off anyway.

You'll save 2k in stamp duty , property in the area I live is starting to sell faster - prices are not going up but they are selling faster . I would dive in now - just my opinion, anything that stops me having to pay a tax works for me;)