First Time Buyer Advice

skyline_r32_2

Hi,

I'm new to the forums and so far have been impressed by some of the advice on here and thought it would be good to get some first hand opinions.

I am currently about the start my first grad job and dependant on if they keep me after the probation period will be looking to get on the property market asap.

As it stands I will be spending a good proportion of my income on rental and commuting expenses, so the plan is to move close to work, buy a property, 2 maybe 3 bedrooms with the aim of renting out the extra rooms to cover some/all of the mortgage.

Between me and my partner (who has the opportunity to move to another branch) we will be earning 42K before tax, are under 25, 0 debt, have a 20K deposit, never missed a payment on anything and are aiming for a property in the 100K - 120K area. We have also never used any credit cards which I think may be a disadvantage as we do not have much basis for a credit rating.

I would just like a rough opinion as to

1) How easy is it to obtain a mortgage under these circumstances?
2) How long must I have a job before I can consider applying for a mortgage?
3) Is it worth using a credit card to improve my credit rating and thus improve my possibility of obtaining a greater lending/ income ratio.

Any help appreciated

originalmiscellany

I think

a) Be aware that house prices are generally going down, and historically these are very low rates - e.g. interest rates can only go up.
aa) You also have mentioned renting, there are tax implications if you generate more money than a certain threshold (I can't remember the amount!)
b) they will ask for 3 months statements to prove your salary (or a letter from HR may suffice if you only have a few months)
c) Could well be worth it, although
d) Speaking to a broker could well be the best thing. We got our house with no credit card, although we subsequently have one, mainly as an emergency cash deposit...
e) Welcome to this board. I too like you was a long term reader, and am so pleased I signed up!

Wh05apk

originalmiscellany wrote: »

I think

a) Be aware that house prices are generally going down, and historically these are very low rates - e.g. interest rates can only go up.

b) they will ask for 3 months statements to prove your salary (or a letter from HR may suffice if you only have a few months)

a) depends on area, but yes interest rates will likely only rise

b) who are "they"? I have never heard of a lender asking for 3 months statements to confirm salary, generally a payslip, some may also ask for statements to verify you can run an account, but never to verify salary as the statement will only show net salaries.

Provided your credit is ok, then you should be fine, you have a decent deposit, good salaries, provided you are on the voters roll not having a credit card will not hinder you too much.

Lenders generally will expect you to be out of probation before applying for a mortgage, and will not take lodgers income into account ( think carefully before taking strangers/lodgers in, will it really be worth it financially to lose your privacy, also don't forget to advise your insurer, otherwise your insurance could be invalid)

skyline_r32_2

Thanks for your advice and yes I will think about it carefully. With regards to tax implications, do you think I would need to would I need to register myself as a sole trader or self employed in order to be legitimate. Also do you think this has implications on mortgage type i.e will I require a buy to let mortgage in order to do this.