Please encourage me!

Mrs_Optimist

Keep saving for the deposit- there is no rush. A couple I know bought a house in July on a 100% mortgage because they could not save the deposit up and are now struggling to pay the mortgage for December - not even 6 months in. They bought too soon and had they bothered to save for the deposit first they would :-

a: have a smaller mortgage

B: had a better deal offered to them (My understanding is 100% mortgages are not the most competitive)

I noticed a local EA promising 125% mortgages! Whatever next. If you really want to move in together rent in the short term and save the difference between the rent and the mortgage towards your own deposit. In your position thats is what I would do, the panic buying of people desperate to get on the property ladder only serves to push prices up, which is of benefit to noone in the long term.

MORPH3US

Mrs_Optimist wrote:

B: had a better deal offered to them (My understanding is 100% mortgages are not the most competitive)

Usually but not always....

Myself and gf are both graduates and got a very good 100% fixed rate from HSBC. It wasn't as good as 95 or 90% mortgages, but wasn't far off.

Add to that the two interest rate increases since and people taking a 90%mortgage now will struggle to get a better rate than we did for our 100% mortgage.

Add to that the fact that we overpay the max each month and we have our rate fixed for 5 years and I think we got ourselves a good deal.

M

chelseablue

I agree - we're in no rush to buy really.

We both live at home with our parents so our outgoings are practically nil.

We're only 23 now so we will keep saving as much as possible!

Mrs_Optimist

MORPH3US - I commend you for being sensible but the fact of the matter is that a large propertion of FTB have no deposit, and can barely afford the mortgage payments let alone overpayments. It is great that you are in a position to do both. As far as the OP is concerned my advice to her would still be, stay at home, or rent and save for a deposit.

sheraz2

chelseablue wrote:

I agree - we're in no rush to buy really.

We both live at home with our parents so our outgoings are practically nil.

We're only 23 now so we will keep saving as much as possible!

wait, let me get this straight. You both live seperately at the moment with parents? You also have 'practically nil' expenditure. I'm guessing due to parents paying everthing around the house?

Don't buy and move in with your boyfriend, rent instead. Get used to a few things:

A) Living with him. It's usually alot different to being with him.

Managing finances, sounds so simple and maybe ,for you, it is. But as a caution, try paying the bills at your own house for a quater. Everything, food, gas/elec, T.V licence, everything. Then see how it affects your social outgoings

C)AND then factor in the mortgage repayments after all that. Also take into account that you will have two wages.

D) Legislate for unforseen circumstances which are always there. Such as job loss, increases in interest rate, break up :eek: .

Please exapand alittle more on what kind of arrangements you have made in regards to the above, then people may be able to guide you alittle better that way.

chelseablue

sheraz2 wrote:

wait, let me get this straight. You both live seperately at the moment with parents? You also have 'practically nil' expenditure. I'm guessing due to parents paying everthing around the house?

Don't buy and move in with your boyfriend, rent instead. Get used to a few things:

A) Living with him. It's usually alot different to being with him.

Managing finances, sounds so simple and maybe ,for you, it is. But as a caution, try paying the bills at your own house for a quater. Everything, food, gas/elec, T.V licence, everything. Then see how it affects your social outgoings

C)AND then factor in the mortgage repayments after all that. Also take into account that you will have two wages.

D) Legislate for unforseen circumstances which are always there. Such as job loss, increases in interest rate, break up :eek: .

Please exapand alittle more on what kind of arrangements you have made in regards to the above, then people may be able to guide you alittle better that way.

Very good points Sheraz2

I should give some more backround really!

Been with OH 5 and a half years. We do pay rent to our parents.
We have 'sort of' lived together! One of my OH's relatives went travelling for 3 months and we looked after their place while they were away. The relative paid the mortgage and council tax and and we said we pay all the other bills - phone, gas, electric, etc as we were the ones using them in that period.
I know that isnt the same as managing our own house but I know what he's like to live with!

We could live on one salary at a push - OH has a trade where he can work overtime and private jobs

Chelsea
x

uncle_ben_2

chelseablue wrote:

just feeling a bit disheartened at the mo and need encouragement

A couple of years ago, we tried to buy our first house... Found somewhere we liked - nice small 2-bed house; same sort of thing you're looking at, and for the same reasons. Basically though, it was just unaffordable, and we got really frustrated and depressed with the whole thing.

Now, a couple of years on, salary has increased significantly, and with more money in the bank the whole thing becomes affordable, and we're now in the process of buying a place we couldn't of dreamed about buying 2 years ago.

There is hope; but perseverence and patience builds character (and grey hair!).

advent1122

zag2me wrote:

My only advice is lower your expectations, a 2 bedroom house as your first purchase would be very impressive.

Most people start in a studio flat, or 1 bedroom flat.

My first purchase was a 3 bedroom house with a garage, at the time I was single.
I intended to rent out the other rooms, but fate took a hand and I met the future Mrs Advent a few months after buying, add a Master Advent a few years later and my purchase was a good move.
It meant we didnt have to find anywhere bigger.