Mortage - First Time Buyer Help

puppy8910club

Morning,

I am looking to move out of home im 24 and have an annual salary of 23k. I am looking for properties of around 100k - 120k. I have had a quote from abbey national that i could get a mortgage from around 96-121k depending on a credit check (which for me will come back very good).

I do not have any clues on mortgages etc but would like some advise. Looking at a fixed rate, - who is the chepeast to go with at the moment??

Based in England (essex).

Its going to be a tight struggle to afford the monthly payments + bills but i think i can just about manage £400-500 then bills on top.

If anyone could advise me who is cheapest / any good deals at the moment that will be great. Looking to move before x-mas.

Require 2 bedrooms and a house prefered. Took a quick search and would seem asking price of 120k i can get a nice small place which would suit.

P.S I have around 8-9k saved up to put towards house / payments

Thanks

opinions4u

To seek out the best deal take a look at www.moneyfacts.co.uk or www.moneysupermarket.com/mortgages.

P.S I have around 8-9k saved up to put towards house / payments

I would expect you to need more. 10% deposit plus £2k for various fees (product fee, solicitors, valuers etc). The luxuries like furniture etc need to be factored in.

Its going to be a tight struggle to afford the monthly payments + bills but i think i can just about manage £400-500 then bills on top.

I like the Nationwide Mortgage Calculator. £108,000 will cost you around £620 a month on a 3 year fixed rate. How would you afford higher payments in 3 years and one day time?

Mrs_Bumble

I think realistically you are going to need a bigger deposit, a minimum of 10% but you will obtain a better interest rate with a 15/20% deposit.

You will also need to budget for the cost involved around purchasing the property, valuation fee, product arrangement fee, solicitors costs, moving in costs etc.

I think also if you only have 400-500 to spend on the mortgage that you might struggle as it is likely to cost more per month.

Speak to an independent mortgage adviser/broker in your area so that they can explain the process and your budget with you.

puppy8910club

Thank you I will take a look..... Obviously in the next few months Ill aim to get around 10k saved up then its the Bank of DAD lol..... Furinature wise I have a lot of stuff at my parents which i would bring with me .. the basic essenitials so really its getting the right deal and being able to afford it.....

_Andy_

The problem is you're saying it's going to be tight yet affordable. You need to budget for contingencies and the cost of home ownership and maintenance. It is always more than you think! The last thing you want is to own a home but having to rack up debts as a result.

puppy8910club

Andy - thanks your right. I guess im going to have to look at a cheaper alternative but the way the market is at the moment is probably the best time for a first time buyer like myself. I just feel if i dont jump on the ship now i may have to wait serveral years more and then i will be in my late 20's living at home which as nice as it maybe is not what i want.

Ill pop down the banks and have a few chats to see what would best suit my budget. Ideally i'd like to move jobs for more £££ but im currently working at FORD's and its a stable job compared to others.

opinions4u

puppy8910club wrote: »

Andy - thanks your right. I guess im going to have to look at a cheaper alternative but the way the market is at the moment is probably the best time for a first time buyer like myself. I just feel if i dont jump on the ship now i may have to wait serveral years more and then i will be in my late 20's living at home which as nice as it maybe is not what i want.

Why do you think now is going to be a better time than any other point in the next couple of years? I doubt house prices are going to rocket. Lenders don't have the money to lend. Taxes and interest rates are likely to rise. These are not conditions for a house price boom.

Ill pop down the banks and have a few chats to see what would best suit my budget.

Beware having multiple credit searches done. These can impact your credit file!

Ideally i'd like to move jobs for more £££ but im currently working at FORD's and its a stable job compared to others.

Ford as in the big motor company? The motor industry is shedding jobs worldwide. Never assume stability in your employer.

puppy8910club

opinions4u wrote: »

Why do you think now is going to be a better time than any other point in the next couple of years? I doubt house prices are going to rocket. Lenders don't have the money to lend. Taxes and interest rates are likely to rise. These are not conditions for a house price boom.

Beware having multiple credit searches done. These can impact your credit file!

Ford as in the big motor company? The motor industry is shedding jobs worldwide. Never assume stability in your employer.

Prices of House's are a lot lower than I have seen before and will rise after the recent credit crunch, although im no expert and could be wrong.

Agreed regarding the credit searches but more of a formal discussion about what mortgage would suit than checks.

Yes Ford MOtor Company as in the big car place - I am part of ITI Site Management and a cost saving IT department. That along with we just had our contract renewed for our department - we are now safe for quite a long time.

SelB

I am in the process of buying my first home, so can give you an idea of what to expect.

It is a flat for £99k and I've got a mortgage offer from Abbey. Its a FTB mortgage with a fixed rate for 4 yrs. I found that generally you need a deposit of 15%. When I started looking a couple of months ago, I couldn't find anything for a 10% deposit. I've had to get some of the funding through my parents (through their mortgage), so in total I should be paying £550 a month (£465 to Abbey and £85 to parents).

Its still all going through for me but they are the figures i'm working with.

puppy8910club

Sat down and worked out the payments for per month.

Below is a rough estimate -

Mortgage £500
Gas / electric £60
Water £16
Drainage £14
Insurance £30
Food £160
Petrol £120
Mobile £35
Council Tax £90
Home telephone £11
Sky £16
Broadband £10
Food / drink @ work £80

= £1182

Ontop of this other things like car insurance + tax / mot etc..

That leaves me with a couple of hundred spare on other spends.......

Really not sure what to do now because i dont want to get into any debit and in all honestly its not going to work out........

happybroker

not the news you want to hear I'm sure but you seem to be taking a level headed approach which is good.

do you have any good friends or the such like that you could pool resources with?......just a thought.