1st time buyer,small deposit,complete newb...help!

philk1

Orkatec wrote: »

The broker will be getting cut so why not approach the lenders direct or through this site.
Sounds like you found a home rather than a house and dont want to let it get away, its not always about the money and if you are in the trade you should be able to add value to cover any more depreciation in the market if any.
We just sold our Box and bought an old cottage and all the problems that go with it, bought with the heart.
I am on my second mortgage and was advised not to take it by my lender, because I am a contractor it suits me. I have a basic payment but it allows me to over pay, pay in lump sums any time and is off-set. I have a bit of savings right now and instead of getting interest I am paying virtually no interest on the mortgage, it also allows me to port to the next property saving the expense of setting up a new one.
Just looked at my Bank you can get £135000 Mortgage 10% Deposit for £845 a month 2 yrs fixed.


Its not always about the money its about what suits you.


James

thanks James.... what you say does ring true.....completely unexpectedly this place we viewed felt like the place we'd like to live in....that's what has made it so difficult. On paper it ticks none of the boxes that we set for ourselves ....we thought we wanted 2 or 3-bed terraced or semi,maybe ex-council,garden,scope for extension one day,hopefully open fireplace (free heat since i get endless offcuts from work!)........this place is weirdly spread out over 3 levels, open-plan living with mezzanine bedrooms,no garden at all,flying freehold with a playgroup underneath part of it,grade 2 listed (so no scope for extension.)
Basically the polar opposite to what we were looking for......just felt like it was right for us......probably not right for everybody (which is why it's within our current budget!!)

The structure looked to be fantastic, but the kitchen,fixtures were of very poor/cheap standard.As i said ,i'm a bespoke furniture maker (i spend most of my time building and fitting very high-end kitchens) and subsequently know plenty of other trades.....i reckon i could make this place beautiful with very little money (since in my job most of the expense is in the labour rather than the materials)


Damn it.....i'm talking myself into it again now!

.....i'm indecisive at the best of times....this could finish me!

p.s.what bank are you with? (if you don't mind me asking)

philk1

Procrastinator333 wrote: »

I'm not saying don't go for it. Cost is only one part of the buying decision. I just think it is better to make your decision with a better understanding of the implications, one of those being financial.

Me, personally, we could own a place sooner by living with the in-laws for the next 12 months. But we don't, we rent atm. After bills etc, that is maybe £16k we are spending out of choice that could have gone to the deposit. So we could have done it more cheaply. £16k is a lot of cash. But we have decidied to spend that cash anyway. That is a slightly easier decision as I know pretty much the exact numbers and the choice we are happy with.

Your decision is more vague. It may cost you around £200 a month extra for 6 years if you move 12 months early. It might cost more, might cost less. If prices and mortgage rates rise, it might even be cheaper buying today. I don't think that likely, but it is possible. We are waiting until we get the 20% deposit and better rates. For some, buying now, avoiding the uncertainty and getting the next 12 months in the right house is worth that £200 a month extra. if that is you, then go for it. Money should be part of your decision, but not your sole criteria.

......i do NEED to think seriously about the financial implications....i've never paid anywhere close to £1k per month on anything,it'd be a massive commitment and change for us if we bit the bullet.

....i'm going to have to sleep on it and make some phonecalls tomorrow i think.I need to figure this out.

thanks everyone...all advice much appreciated:)

Orkatec

I am with the Royal Bank of Scotland
Not by choice, it was one of 2 in the village.

philk1

Orkatec wrote: »

I am with the Royal Bank of Scotland
Not by choice, it was one of 2 in the village.

thanks orkatec.....

.....i've just been on the phone to the broker (i've spent most of the day calling various people about this,inbetween lifting big chunks of timber about...i'm properly knackered).....he still thinks the most suitable he can find me is a 5 year fixed at 6.5% (and even this is far from certain). Three main reasons for us being outside of the consideration of the majority of lenders.....

1. only 10% deposit.

2. not much credit history (no bad at all....we've just been careful with our money...and only really used debit-cards.I'll be buying more on credit from now on, but obviously paying it off in full.)

3.a large part of the house is above a commercial property (nursery/playgroup)....this wouldn't bother us in the slightest,it's got ridiculously thick walls/ceilings,and we'd be at work when it's open,but it's seen as a risk to the lender.


.....it's still possible (maybe) but i'm less than hopeful:(