FTB help

alyssa_liss

Myself and my partner are hopeing to purchase a house soon

i will be 21 (roughly 12k, prob a little bit more by then)
hes 23 (15k)

i popped into my local brigefords the other day for a quick chat and she thought that we could be able to get £104,000 worse case (idealy we could do with £110,000

currently got £3000 saved towards deposit/fees, but will be more by the time we want to move (a few months)


were going together for an appointment tonight (if i can find his p60)
were going to get rough figures etc....

can anyone offer any help as i dont really know what im on about

beecher2

You need a minimum of 10% for a deposit, and a few more thousand for fees. Work out how long it'll take you to save that first. £110,000 sounds a lot to borrow on that wage.

alyssa_liss

we were saving towards 10% but the thing thats made us look sooner are the 5% vendor gifted deposits

Cannon_Fodder

Check which Lenders accept gifted deposits. Not many do. It is a way of charging you 5% more for something than the Lenders think you should pay. Even Lenders who will accept gifted deposits might end up de-valuing the property below what the vendor thinks it should be worth, blocking your ability to leverage all the mortgage money that you will need.

It will be a really expensive % rate at 95% LTV. Not very MSE. Why spend time trying to get a few pennies and pounds off deals elsewhere on the site, if you are happy to give away hundreds on a mortgage..?

Better to take another 6 months to make it 10% in order to lower your rate. At 21 you are 10 years ahead of many FTBs. No need to rush.

A rough play with figures indicates you are likely to be looking at in excess of 40% of your income for the mortgage - that's high.

Over-extending yourself prematurely could lead to the loss of all your hard work in saving a deposit & fees.

alyssa_liss

i understand what you are saying, thanks

it will probably be about 6 months before we are ready anyway and i will be on a higher wage when i turn 21 next month.

i know we are in no rush just wanted a few facts and figures of something to aim towards.

we just really want a place to call our own as we are living between houses.