FIRST TIME BUYER _ where do i start?!

mrsmasterplan

Im a first time buyer as am fed up of having to rent and throw money at other people.
Im a teacher so my salary is about 22,500 however i have no idea what type of mortgage i should go for. The place i want to buy i would like to live in for a while. Also i have no idea how much I would be allowed to borrow? (Its just me on the mortgage, noone else)



Any advice would be gratefully received?!

beecher

How much of a deposit have you saved up (plus remember you'll need more for fees etc). What's your credit rating like, and do you have any debt? What £ of property have you been looking at?

tek-monkey

I'm on a very similar wage, and was offered almost 4x my salary. I used an assistance scheme though, so am only buying 60% of my first place (and hence used that 40% as a deposit to get better rates). Got an 80k mortgage withou issue, not like you can find a house for that though!

benjo

Looking at some of the affordability calculators (which could be out of date) it suggests that you could borrow somewhere in the region of 66 - 88k - that will depend very much on any others debts you have to service, credit reference file and how much deposit you have saved.

Assuming you are buying on the open market and not using an assistance scheme (I know little about them) then you would need a minimum 10% deposit - the more deposit you have the more choice of lenders you will have and the better interest rate/deal you will have access to.

On top of your deposit you will need (very rough estimate)

Solicitors fees £750 ish
Valuation fee £400+ depending on the type of survey you have done
Product fee £199 - £1999 - depending on the product/lender
Broker fee ??? unless you go direct or use a Fee Free Broker.
Removal fees £400+ depending on how far/how much junk you have.
Emergency OMG the roof fell in fund ???
Emergency OMG I lost my job fund ??? 3 months mortgage payments perhaps
Im sure I forgot some of the incidental bills associated with house moving, but those are the major ones I remember.

So, if you were looking at properties around 75k you would need a deposit of 7.5k and would be borrowing 67.5k which would cost (approx) £399 per month over 25 years at 5% - at 12% it would be £720.

Goodluck

Wakey2008

benjo wrote: »

So, if you were looking at properties around 75k you would need a deposit of 7.5k and would be borrowing 67.5k which would cost (approx) £399 per month over 25 years at 5% - at 12% it would be £720.

Goodluck

In this market you would need a bigger deposit than that ideally. A 15% plus deposit would serve you better as few lenders go above 85% ltv now.

For the best deals you need 25 - 40% deposit.

herbiesjp

A lot more information is required really

Like do you have any other debts?
Do you have a good credit score?
What deposit do you have?
Do you have any dependents?