Doable or Unrealistic?

Aberdeen_3

I've managed to sell my current property and my gf and I are considering if we want to buy now or rent for a while, save more deposit and look again in 6-12 months.

Gross earnings between the two of us are £62k and we're looking at a £245k purchase price. Only have the dreaded 10% level of deposit at the moment and would likely take us ~6 months to save another 5% at the same level of purchase.

Debt wise, we 'only' have £1k on a credit card (0% interest at the moment) which we could pay off if it would make a material difference.

Given current lending restrictions,iIs a £220.5k mortgage with our salary levels, at 90% LTV, something that is doable or completely unrealistic?

Appreciate a lot is likely to hinge on credit record etc but I would say these are both clean. I've had a mortgage for past 3 years operated perfectly and neither of us have any missed payments on credit accounts.

Likely we may speak to a broker but I've seen an abundance of excellent advice on here so grateful for any feedback you guys have.

getmore4less

Doable < 4* multiple on decent income.

Just keep saving till you decide where you want to live.

Rent the cheapest place you can for now.

opinions4u

On the face of it, I'd expect you to be able to raise the mortgage you want.

A 15% deposit would open more doors and a range of superior interest rates though.

shortchanged_2

I don't think property prices are going to rise much in the next 6 - 12 months so you may be better off saving for a little while longer, getting a bigger deposit and therefore getting a better mortgage rate.

Aberdeen_3

Thanks for the responses.

I guess the dilemma could become, although we could raise the funds, should we actually do it or wait a while.

Maybe with the gloom surrounding house prices, waiting a while and saving some more may be a sensible approach.

Try telling that to the gf when she's searching the property websites though! :rotfl:

opinions4u

Aberdeen wrote: »

Try telling that to the gf when she's searching the property websites though! :rotfl:

Try listening to the "told you so" when you agree a joint course of action and it turns out the other option, with hindsight, was better.

It will all be your fault!

TrickyDicky

If you rent for a while, the minimum tenancy agreement is going to be 6 months anyway. Buying now may save you all the hassle and cost of moving twice.

Aberdeen_3

Soooooooooooooooooooo, thought I'd conduct some thread necromancy!

Decided to rent and got lucky that a friend of ours had a place which had tenants leaving so we're paying pretty cheap rent meantime.

Now - Seen a house which we like.. Valued at £200k, hope to get it a little under but using £200k as the basis allows us to have a 15% deposit and access to a little bit better rates. Earnings are as in my original post, £62k.

Potential problems:

1. I sent away my registration for the electoral roll at the new place last month but my credit report doesn't show me on it here yet (shows me 4 years at the previous address). I read on here a lot that it's important to be showing on the electoral before applying for a mortgage. Is this a "if your not on it, don't bother applying" scenario?

My current account and 2 credit cards are showing at the new address so thankfully there is a link.

2. Probably more problematic is that the mortgage and loan (NR together, woohoo!) which were cleared at the beginning of February from the sale of my previous property are not yet showing as settled. The current balance against each is shown as zero on the report but I don't remember if it was always like this. No doubt another show stopping pain in ze erse?

I had hoped to apply directly as, if the above were resolved, I'd hope that it would be relatively straight forward for us. However, the welcoming bosom of a broker does have a certain appeal if the above is likely to cause an issue.

Any ideas?