First time buyer - advice

jim2406

Hi Everyone

I'm currently renting with my Fiance and giving thought to what to do in the future. I'm new to all this so would really appreciate some advice. About us:

Me: 25 Her: 21
Where: live in Birmingham
Debt: about 7k + student loans (8k each)
Current outgoings: Rent £800 / mo - Car £200 / mo + utilities etc

Income is the tricky bit. I've just quit perm work (had salary of 31k that can be proven to a lender - not sure if this would strengthen application) to go contracting. I can expect around £30 an hour, and I figure on working around 44 weeks a year (hopefully more), which would put me at:

37.5 * 30 * 44 => £50k

I'm in a contract until next June paying a bit more than this (around 5.5k a month before tax) - so should have cleared the debt by then, and have a bit of a deposit.

My partner has not yet started working, although we're only planning for her to work part time, initially at least, so my income will form the majority of our money

What would you do in our situation? try to get a mortgage now, or wait until debt is clear / we have a deposit / a few months accounts behind my company? Also, the houses I've been looking towards buying are typically around £160-170,000 - do you think this is reasonable given our income, or should we be aiming lower?

I really would appreciate any advice you folks can offer, as I am not too clued up about this yet.

Thanks
Jim

curlychops

Hi Jim,

Hopefully this will give you some idea, my partner and I are currently in the process of buying our own home which we are putting a 5% deposit on. We have a joint income of 42K with two small loans ending in 2008 plus my o/h has a student loan. Our mortgage is going through the C&G and we are borrowing just under 117K fixed for 3yrs on a first time buyers package.

When applying for our mortgage the lender required our last three payslips,our monthly payments on our loans and the end dates.

Not sure of prices in Birmingham area but we are purchasing a 2 bed semi in Gloucester for £122,500.

The best advice I could give would be to see a finacial advisor (who should not charge you for this) and once he/she has your details they can then advise what lenders would be willing to give you a mortgage.

If you are in no rush to move and want a better deal from the lenders then perhaps you could use the money you have saved for a deposit to pay of some your outstanding debts. This also gives you a chance to have more proof of income for yourself, gives your girlfriend a chance to find a job and start having proof of income and of course in the mean time you can start to save again for your deposit and solicitors fees.

Hope this helps.