First time buyer: opinions please

MyPrecious80

In the last month I have reserved a flat on a new development and am in the process of buying it. The mortgage offer and valuation are through so everything's going well so far.

Thing is, I'm beginning to think I may be doing the wrong thing. I guess I'm just panicking about my deposit and fees.

When I reserved the flat I didn't have my whole deposit in place but thought I'd have the time between then and the day of exchange. I'm now £400 short and have £855 solicitors fees to pay. I'll need to take out a small loan to cover these things.

If I pull out I'll lose my £250 reservation deposit and £295 to the IFA for cancelling the mortgage.

There's also that fact that I've taken a shared equity mortgage (the only way I'd be able to get on the property ladder) and I've heard that these may be stopping by the end of the year so do I risk that I'll be stuck at home forever?

I'm just wondering is it better to lose that in the short-term and continue to save and be better prepared next time or do I take out the small loan but then struggle that little bit more when I move out?

If I take the loan I'll have £300 spare cash after all bills, mortgage etc come off. Is that a reasonable sum to live on?

I must sound like a complete idiot but I need help!

Emmzi

start with: why do you a) want to buy and b) want to buy this property?

MyPrecious80

I'm back at home living with my parents and brother. As much as I love them I need my own space. Currently I spend all of my time in my shoebox of a bedroom and I feel like I'm a teenager again having to tell them where I'm going and when I 'll be home.

I've also been in my dream job for the last 18 months and feel like I should have my own place and be more independent.

I guess I'm just scared that I'm not going to be able to afford it. I've been burned before and it's made me wary.

Emmzi

why did you decide not to rent?

MyPrecious80

I feel that renting is throwing money away cos you're paying someone else's mortgage rather than investing in your own place.

Fire_Fox

MyPrecious80 wrote: »

I feel that renting is throwing money away cos you're paying someone else's mortgage rather than investing in your own place.

No logic in that statement at all. If you had bought in 2007 you'd probably now be in negative equity, i.e. worse off than by renting! Do you actually love this flat or do you just hate living at home and want to escape?

Is this a one or a two bedroom flat? Are you allowed to let the place (check the lease and your mortgage terms and conditions) if you wish to move and can't sell? Have you taken service charges and major works into account? Do you know where all your income goes at present down to the last fiver? If so is £300 a month a reasonable amount for YOU to live on?

Budget planner, including all the things we tend to forget - Xmas and haircuts for example. http://www.makesenseofcards.com/soacalc.html

jonewer

MyPrecious80 wrote: »

I feel that renting is throwing money away cos you're paying someone else's mortgage rather than investing in your own place.

Oh dear....

Emmzi

ok. This seems to be a case of wanting a house, any house.

£300 does not give you enough contingency for things going wrong IMHO.

If you can't get the deposit together, when you have NO mortgage, it isn't looking good.

You don't love this place. Take the hit, walk away. Save a bit more. Get a promotion. Try again, but never in a panic buy. If you need to move out, become someone's lodger.