Advice for a newbie!!!

ali82

I am a graduate ant want to start looking in to buying a house in a year or so. I am trying to sort out my credit file at the moment to get it into a good condition when I am ready to buy.

Does anyone have any advice, tips hints into how this whole process begins as I don’t have a clue where to start looking and researching (I don’t mean area’s to buy) e.g. how do I find out step by step procedures, alternative options?? (A friend was telling me about shared ownership?? Not sure if this is any good?) mortgages, deposits ?%. I am curently renting but after January I should be able to save £500 a month.

Eventually; much later on I would like to get into property developing and would like to build my own house very later on.

So who’s going to share their wisdom with me!!

Thanks

PoorDave

Question 1: Do you have a job with a salary. If so what is it?

This will define how much you can borrow, in simple terms. You will generally borrow somewhere up to 5 times your gross salary.

This defines which properties you can afford. Then you need a deposit (perhaps, although you can get 100% mortgages). A 5% deposit will get you better mortgage deals than no deposit, generally. A 10% deposit will get you better deals than 5%. You get the picture.

Then you need to look at how much the mortgage will cost per month, and compare that with your net salary per month i.e. how much of a bite will it take from your hard earned cash.

In order to buy the house you may also have to pay a variety of other things such as solicitors fees, mortgage fees, and stamp duty. Most of this is paid from your own pocket at the start, but some can be added to your mortgage borrowing (not advisable as you pay interest on it for the term of the loan, but avoids having to pay it as a lump if you can't afford it)

A start.

ali82

Ok, I am working I earn £20k and a saturday job that I earn £3k. I have recently set up a small photography company where i am hoping to sell my work (haven't sold any yet though) so I think I can earn between £600 - £1,000 a month, need to sort this out asap so I start saving.

so how does all this work. I have printed some info off of here to read up on but what should by first step be??