FTB Mortgage

USM

Sam-Barr wrote: »

:j I have 15k in the bank just now but have no idea where that would get me.
It sounds crazy but maybe I could hold off and maybe save like crazy then skip the whole mortgage thing and buy outright?

It's a great idea but even on a £50k property assuming you didn't spend a single penny of your salary that would take 4 years.

CLAPTON

lets take an example

say you bought at 50k
I don't know anything about scotland but lets say costs are 2k

so you need 52k
hold back say 3k for furrniture etc
so you need 55k
you have 20k deposit
so you need to borrow 35k

at say 5% APR over 25 years that would cost you about £205 per month for the mortgage

Sam-Barr

So if all went swimmingly I'd be 50 by the time I actually owned a house. Goodness.
Local council rent is £210 a month for a one bedroom here.
I honestly think they should teach this sort of stuff in school. No everyone can rely on family to explain this sort of stuff to them.
Thank you very much for your help.

Sam-Barr

What about if my current job was a project and is only going to last 4 years (done in 2012), would I be able to get a mortgage on that?

hazyjo

You'd have to discuss with a mortgage lender. Not sure they'd lend on a contract though, probably only a permanent job. Depends how it all works... are you self employed on a contract, or are you in this job on a long-term-temp basis until the project/contract ends?

Not many people end up in their final home when they first buy. Chances are (as depressing as it seems now when you're young), you'll probably end up moving on or buying with someone, or extending mortgages. I bought my first 2 bed flat at 21 and am about to take out a 16 year mortgage on hopefully my 'forever house' (although, to be fair, we might move again when we're old (I mean 'older'!) and grey(er!)). And this will be my 6th move so far... and most I've thought I'd be in for much longer! Life doesn't always go the way you expect though...

Jx

jodami84

Morning Sam-Barr,

I wasn't in too disimilar position to you a year ago in the fact that being a first-time buyer just seemed to be an absolute minefield. One thing after another, and more often than not, more and more money.

This forum will be great for asking questions, serach similar thread titles and read up on whats already been said. It sounds like u have a good deposit and with the figures u mentioned, that 15k would be near to a 25% deposit. If you really could do that, then it would certainly broaden your options regarding a mortgage, and u wont get shafted to quite an extent on the interest rates. Search mortgage calculator and compare mortgages into google and u wont be short of help. Bob in your details and it should give u an idea of how much repayments are likely to be and how much u could borrow. There are plenty of booklets around that will breakdown all the costs incurred when purchasing a propery, most of which i found really handy.

That said, dont leave urself short, as eluded to by several already, you may well need another 5k to get yourself on your feet and it will always help to have a bit to fall back on in case of any problems. Do ure research, make sure your comfortable with the decisions ure making and dont let EA's and Advisors bully you.

Best of luck