A Little Help For a First Time Buyer

brit1234

geoffky wrote: »

oh dear...a 95% mortgage and a 3o yr term....

Your not hinting at negative equity dangers and not being able to re-mortgage are you.;)

OP is better saving a bigger deposit whilst his wages increase and house prices fall.

kiki*_2

brit1234 wrote: »

Your not hinting at negative equity dangers and not being able to re-mortgage are you.;)

OP is better saving a bigger deposit whilst his wages increase and house prices fall.

No I'm not as we can afford to over pay so it won't last 30yrs at all.

DazGlanza

Thankyou to all that have shared all this vital information!

The 9k is only what i have put to a deposit i can push to 11k and still have another 5-6k left for bills, utilities etc..

Im fully qualified already but its gradual pay increases over 3-4month intervals. I work for a very big company and in a trade thats quite sort after and love my job! I have done this trade for around 4-5 years now.

Im going to see an independant mortgage advisor on friday, free of charge to see what can be done, atleast i will have a goal and an idea of what i need if nothing can be done..

edit: iv also spoken to a friend of mine who works for taylors, they have a 2 bed property as advised above for 165k and has said that they may be able to sort a deal where the vendor waves 5% towards my deposit, is this a good idea and based on the information above would i be likely to get a mortgage for this kind of property?

TheMoneySavingNovice

brit1234 wrote: »

Your not hinting at negative equity dangers and not being able to re-mortgage are you.;)

OP is better saving a bigger deposit whilst his wages increase and house prices fall.

Totally agree. Wait 3 years and save like mad to get the biggest deposit possible. It will save you loads long term..

casper_g

DazGlanza wrote: »

edit: iv also spoken to a friend of mine who works for taylors, they have a 2 bed property as advised above for 165k and has said that they may be able to sort a deal where the vendor waves 5% towards my deposit, is this a good idea and based on the information above would i be likely to get a mortgage for this kind of property?

New build houses are generally priced at a premium compared to "second hand" ones. Lenders know this and are very wary about lending high loan-to-value ratios or income multiples against a home that will drop in "value" as soon as the transaction is completed.

I sincerely hope that there is zero chance of finding a lender willing to give you 95% of the purchase price of a new build house, when you tell them the other 5% is coming from a gifted deposit from the houusebuilder and the amount you want to borrow is over 6 times your soon-to-be 25K salary. That would have all the ingredients for a very unwise lending decision, IMHO.

ETA: If this is the sort of house you want to buy (new build, in that price range) then save a much bigger deposit (a real deposit, not a small discount from the original sky-high asking price dressed up to look like a deposit) and wait until your income is higher. Once you have a deposit of say £33,000 (20% of 165K) and an income of £33,000 plus, then you might be realistically in a position to buy one of these 165K houses.

beecher2

DazGlanza wrote: »

edit: iv also spoken to a friend of mine who works for taylors, they have a 2 bed property as advised above for 165k and has said that they may be able to sort a deal where the vendor waves 5% towards my deposit, is this a good idea and based on the information above would i be likely to get a mortgage for this kind of property?

You'd be looking at a mortage of £150k on a 25k salary which is 6 times salary and isn't going to happen as it is completely unaffordable. Why the big panic to buy now? Save like mad for the next year and buying will be realistic rather than the pipe dream it is at the moment.