First Time Buyer

glasgowm148

Hello,

I'm looking for some advice - I've tried using the web but a lot of the information is scattered.

I'm 22 earning about £18.5k/yr salary in a job I've been in for 2 years. Looking to buy a flat (works out cheaper than renting - plus with renting it seems you're throwing your money down the drain paying someone elses mortgage) My gran is willing to give me around ~£7k for a deposit on a house. I also have around £2k personal savings I can add to this.

I've already spoke to my bank (Halifax) and they said they'd give me a mortgage but I'd need 15% instead of the usual 10% (I don't have bad credit - I just have no credit. The only thing I've ever bought on credit was my iPhone back in January) The flat I was looking at is listed as £80,000 so I would need to raise an additional £3k for this.

If I go in and speak to the bank would I be able to get them to lower the percentage to 10% if I explain the situation?
Could I get someone else to co-sign the mortgage as a guarantor?
Are there any schemes set up in Scotland aimed to help people like me (The only ones I could find were closed to new applicants)

Also, what happens to my mortgage if I'm made redundant? What support does the Scottish government provide in this situation?

Thanks
Mark

beecher2

Remember you also need money to cover fees, so will need a bit more in the way of saving. Go and see a mortgage adviser for help, and you could also get some quotes from solicitors.

If you're worried about being made redundant, I'd hold off from buying - where I live in Glasgow there are loads of properties to choose from and nothing's moving very fast. If a property's listed at FP £80k, you may well get it for less.

Have a look here for the support given

http://mortgagehelp.direct.gov.uk/
http://www.direct.gov.uk/en/MoneyTaxAndBenefits/BenefitsTaxCreditsAndOtherSupport/DG_180321

glasgowm148

Thanks for the reply.

I'm looking in the East Kilbride area. I'm not really worried about loosing my job but when making a 25yr/£80k commitment it's good to know what you've been paying taxes for!

Can I use the mortgage to pay the fees? Say I got a £80k mortgage but managed to get the guy to sell at £72k - Could that £8k be used for fees? Had a look online and the fees shouldn't amount to more than £1k if I'm reading correctly?

beecher2

I'm afraid not - if you buy at £72k, that's what the LTV will be based on - you'd need £10,800 for your deposit and then additional money for the fees. I don't know how much fees would be as it is years since I bought. You will have mortgage fees, solicitor fees, moving costs, and also need to factor in money for furniture, maintenance etc.

You will need to build up a savings fund in case you lose your job. I wonder how stretched you'd be on 18.5k - have you worked out a budget?

glasgowm148

Would be moving myself and buying furnished. Did not take take into account I would need to hire a solicitor or pay mortgage fees through.

Budget

• ~£450 rent/mortgage
• £75 council tax
• £160 food
• £100 Utilities (Gas/Electric)
• £30 Phone bill
• £20 Buildings Insurance?

My transportation is free, so that leaves me with £78/week spare ([287x4] - [450+75+160+100+30+20]) Plus I expect my food bill & rent to decrease when my girlfriend moves away for Uni and I can let a room out to a friend.