First Time Buyer - Advice needed

AJBRSMI

Hi, just starting to think about the options that may be available to me in buying somewhere. I've a feeling I may not be able to get a mortgage yet, but I'm not an expert so I am hoping someone is!

Anyway, I'm currently 23, a trainee chartered accountant, earning approx £21k. Got about 18 months left until I fully qualify, when salary should increase to somewhere between £35-40k. I have £15k that I could use for a deposit.

Looking to buy a two bed flat somewhere with the idea of renting a room out to help cover the mortgage. Trouble is, in the area I'm looking I don't think I could get this for less than £125-£130k.

If the 4x salary rule applies then obviously I'm struggling to get anywhere near this, but I didnt know if anyone was aware of places that would lend more to accountants etc, or if there is anything else I could consider such as shared ownership. I thought I'd read somewhere about getting up to 7x with one provider.

I'd happily buy now and be relatively poor for 18 months if it means getting on the ladder sooner rather than later, but I guess otherwise I'll have to wait until I qualify.

Any advice gratefully received! :beer:

jamesd

You might also consider a cheaper place and work out the difference in interest costs and what result that produces in your equity at the end of the term. The reduced interest is quite significant if you instead buy a studio of one bedroom place for something in the 70-90,000 range. At 5.25% interest on a 120,000 place is 525 a month. At 90,000 it's 394. Over two years that's 3144 available for living or equity buildup and you can be living alone instead of with someone else. Someone else might gain you more than that in rent, though.

olly300

Find a broker.

_Andy_

Spam reported (as in 'Harington's post)

Lara44

Hello AJB

Would you consider buying with a friend? This could enable you to get onto the ladder now, although obviously it would be less equity for you.

However, you could look for a property that had some development potential (such as loft conversion). You could then buy the place with your friend certain that you wouldn't be overstretching yourself, then save up all that extra income you'll have when you qualify to develop the property?