We Want To buy A House

gazfocus

Ok, so as title says, we want to buy a house. I'm hopefully starting a permanent job soon and will finally be able to save some money (we can't at the moment because we're on income related benefits so can't save too much).

So, we've decided to look into buying a house as we're fed up of throwing away good money at renting properties but we have a couple of questions.

1. Is there a set formula regarding the size of mortgage you can get? (i.e. x amount times your wages)?
2. What sort of percentage would we need as a deposit?
3. Where can we find out about what fees would need paying (i.e. solicitors, surveys, etc)?

Hope someone can help as we just want to know what we'll need to do to buy our first house.

Thanks again

Jomo

gazfocus wrote: »

Ok, so as title says, we want to buy a house. I'm hopefully starting a permanent job soon and will finally be able to save some money (we can't at the moment because we're on income related benefits so can't save too much).

So, we've decided to look into buying a house as we're fed up of throwing away good money at renting properties but we have a couple of questions.

1. Is there a set formula regarding the size of mortgage you can get? (i.e. x amount times your wages)?
2. What sort of percentage would we need as a deposit?
3. Where can we find out about what fees would need paying (i.e. solicitors, surveys, etc)?

Hope someone can help as we just want to know what we'll need to do to buy our first house.

Thanks again

I think you would be looking at a mortgage of 3 or 4 times your salary, a deposit of about 20% minimum required and at a guess I would say about £3,000 in fees? Although I'm not too sure on that last one, could be wrong!

Radiantsoul

1. Mortgage companies tend to look at more complex affordability calculations. The old rule was three and a half times your salary which is a reasonable rule of thumb.
2. 10% is probably the minimium and the more you get the better the interest rate.
3. Fees are variable, and so it depends. But somewhere around £2k-£5k seems reasonable if things are straightforward.

poppysarah

Worry about buying when you've saved a deposit.

Good luck with the job !

vickitoria6232

Go through a 'whole of market' mortgage broker. They are worth their weight in gold.
Best ones will charge a fee of around £200 but will do all the legwork and help your case go through quicker as they are in the know with the lenders.

Deposit is 10% minimum - 15% will get you a decent rate, obviously the more the better.

Solicitors fees will vary. If you are buying only then it will depend on value of property - our is £80k and fees are £700 all in - ring around a get lots of quotes but ask for a 'comprehensive quote inclusive of all searches and fees'

Good luck!

monkeys_bunny

Good luck i think the above post;s tell you what you want to know. but as a seller i would ask you very very nicely to please please please dont go round looking at houses until you at least have a deposit and a mortgage offer in principle. You will only get upset when you cant quite afford your dream home and depress us already sad sellers even more.

i wish you all the luck in the world and hope you save up and buy your first happy home soon

Katgrit

Traditionally it used to be 2.25 x a joint salary or 3.5 x a single income salary. This then went a bit mad and some banks were giving ridiculous things like 7 x a single salary, shedloads of people couldn't afford it, went broke and got repossessed. So now banks are back to being a bit more careful and not lending out those amounts. A lot of ones I had quotes off used more or less the traditional multipliers, but as other have said they do also look at the "affordability" ie what you have left after bills, cc payments, child maintenence etc.

For first time buyers you're looking at minimums of 10-15% deposit, better rates on the 15% obviously.