First Time Buyer's Guide To Mortgages

Katie22313

Hi

I am looking for some advice. I really want to get onto the property ladder and buy my first house with my long term partner.

We currently have around £2000 in the bank and would like some advice on what would be the right route to go down and how to start this off.

I earn £18000 and my partner earns less then me. Am I earning enough?

If someone could either message me with some advice and help I would be very gratefull!

thank you

Katie

robatwork

Realistically you need 10% deposit to get a manageable mortgage. If you're in Beds then you are looking at a minimum of 100k to get you something very basic - so that's 10k that you need. Can you get a gift from relatives for the rest? 2k isn't going to cut it I'm afraid.

If your combined income is £32k then you could afford a 90k mortgage depending on what your "debts" are that you mention in your sig.

You may well be better off renting and saving (or better living rent free with relatives and saving)

Bourjois__x

Hello,

I'm an avid reader of MSE and this is my first post on this thread.

I know that this is a bit off but I'm wanting to gain knowledge and get as much information as possible when I come to buy my first home.

I plan to buy my first home in 2014, at this point I will be 26 years old. I will have an income of around 21,300K. I have no debts and have never been late at paying for anything. By the time I come to start looking for a place, I will have a deposit of 20K - this isn't including the Solicitor fees etc. I will be moving on my own.

Please can you let me know whether this deposit and my wage would allow me to have a mortgage and if so, a guestimate of what I could be offered?

Thank you,
Lauren

Quarterback

Hi money savers!

Can't get access into my old account so had to make a new one to post!?

Anyway, I'm looking to buy a property in the next few months hopefully. I am 25 years old and currently make £26k per year. I don't spend much so have accumulated £40k savings over the years having worked since I was 16.

I am looking to buy a property on my own and have read numerous conflicting articles on what I can afford. I know there are mortgage specialists but I'd like to know a ball park figure of what I can afford property wise before committing to anything.

I have very little commitments for money going out, just the basic food bills for one. Maybe the odd purchase here or there nothing too expensive! Company car and fuel paid for etc...

Any estimates, guesstimates or suggestions would be greatly appreciated!

Thanks in advance!

kingstreet

Bourjois__x wrote: »

Hello,

I'm an avid reader of MSE and this is my first post on this thread.

I know that this is a bit off but I'm wanting to gain knowledge and get as much information as possible when I come to buy my first home.

I plan to buy my first home in 2014, at this point I will be 26 years old. I will have an income of around 21,300K. I have no debts and have never been late at paying for anything. By the time I come to start looking for a place, I will have a deposit of 20K - this isn't including the Solicitor fees etc. I will be moving on my own.

Please can you let me know whether this deposit and my wage would allow me to have a mortgage and if so, a guestimate of what I could be offered?

Thank you,
Lauren

You'll be able to borrow around £100k, which when your deposit is added means a maximum purchase price of £120k, allowing for fees etc.

This will of course fall towards the upper end of affordability, so you might like to work out what you would feel comfortable paying each month, then use a lender's online calculator to work that back into a mortgage amount and purchase price.

kingstreet

Quarterback wrote: »

Hi money savers!

Can't get access into my old account so had to make a new one to post!?

Anyway, I'm looking to buy a property in the next few months hopefully. I am 25 years old and currently make £26k per year. I don't spend much so have accumulated £40k savings over the years having worked since I was 16.

I am looking to buy a property on my own and have read numerous conflicting articles on what I can afford. I know there are mortgage specialists but I'd like to know a ball park figure of what I can afford property wise before committing to anything.

I have very little commitments for money going out, just the basic food bills for one. Maybe the odd purchase here or there nothing too expensive! Company car and fuel paid for etc...

Any estimates, guesstimates or suggestions would be greatly appreciated!

Thanks in advance!

Only you can decide what you can afford. Advisers and lenders can tell you what you may be able to borrow, but only you know what will feel comfortable to you.

As I suggested above, work through your budget to a comfortable monthly mortgage payment, then use a lender calculator to work that back to a mortgage amount and purchase price.

Bourjois__x

kingstreet wrote: »

You'll be able to borrow around £100k, which when your deposit is added means a maximum purchase price of £120k, allowing for fees etc.

This will of course fall towards the upper end of affordability, so you might like to work out what you would feel comfortable paying each month, then use a lender's online calculator to work that back into a mortgage amount and purchase price.

Thank you for your reply. I have been looking at houses/flats for up to 110K including my deposit, which I think by the time I come to buy I should be able to afford. I will have a look at the online calculator to work out.

Thanks again!

penny_pitstop

Do 95% mortgages exist anymore? I spoke to an advisor who said they do pop up every now and then but I haven't been able to find one.

kingstreet

penny_pitstop wrote: »

Do 95% mortgages exist anymore? I spoke to an advisor who said they do pop up every now and then but I haven't been able to find one.

That's quite a good way of putting it. Over the last few months, Skipton, Clydesdale and Ipswich have had 95% offers. I can't think of anyone right now, so you'll have to wait for something new to pop up.

You will need to be absolutely perfect in all respects to qualify for such a deal so make sure everything in your financial make-up is up to scratch.

Any issues, post a new thread on M&E.

Chickabiddybex

I wonder if anyone can help me with this...
I live with my long term partner and we pay about £400 per month in rent.
We want to buy a house but we don't have any money saved for a deposit yet.
As we don't earn a lot it would take us a long time to save up for a deposit. But in the mean time, we're wasting money renting when we could be paying off a mortgage! So... would it be better for us to save up for a deposit while renting or would it be better to get a 100% or 95% mortgage and have to pay extra in interest?

(I've seen a few people advise others to move home so they don't have to pay rent but this isn't an option for us... plus my mum would charge me rent anyway!)