Jumping off the housing ladder

charltonboy1978

Hi All,

Is it significantly harder to get back on to the property ladder once you voluntarily get off?

We have sold our house to a first time buyer and having lots of issues trying to find somewhere to move to. We do not want to lose our sale so prepared to rent for a while if we cannot find one by the time of completion.

We have in the region of 80k which will form a 20%+ deposit on a 375k house we would like to buy (when we find the right one)

We have an excellent credit record.

I do not have a good insight into how the mortgage market works but am fearful that becoming a 1st time buyer again will have a negative impact on our ability to secure a mortgage. Am I right to think this way?

Thanks in advance,
Charltonboy

shortchanged_2

Well if your income is big enough I don't really see it being a problem with a 20% deposit.

I take it you have an annual income of around £90K for a property of that price.

charltonboy1978

Thanks, I thought that was the case but always good to get reassurance.

Regarding the income I can confirm that my wife and I have a joint incomes in excess of 110k.

sonastin

charltonboy1978 wrote: »

I do not have a good insight into how the mortgage market works but am fearful that becoming a 1st time buyer again will have a negative impact on our ability to secure a mortgage.

You won't be a 1st time buyer because you won't be buying for the 1st time.

You will be chain free which will put you in a good position to negotiate a good price if your vendors are keen to move.

Provided that you have a good income, a good deposit (sounds like it) and a good credit history you shouldn't have too much trouble securing a mortgage.

Arthritic_Toe

The whole concept of the 'ladder' and fear of getting off it, is cooked up by Kirstie and Phil et al. You will be in a vastly better position having sold your house, with a nice fat deposit in the bank able to buy at any time without a chain. There are no negatives.

pinkteapot

We sold our flat in Feb 09 and rented for 18 months before buying again. It took that long to find the right house that was being marketed at a realistic price (soooo many over-priced properties out there at the moment). We bought in August.

Our bank classed us as first-time buyers on the mortgage application and it didn't hurt us at all. As the previous poster said, with a 20% deposit you should be fine. If you can rent somewhere cheap and save up more in the meantime, you could get up to a higher % and therefore get a better rate on your mortgage.

And, who knows, prices could come down before you buy. :money:

With that chunk of cash to use as a deposit, if you put it into one bank, you can qualify for their higher-end service. For instance, we have an HSBC Premier account because our house deposit sat with them. This enabled us to get a preferential Premier mortgage rate, even though we went under the threshold for HSBC Premier (in terms of savings balance) after buying. These accounts are free. You get the same level of service as those paid-for accounts that anyone can have. Much recommended.