Tentative steps towards first mortgage..

Fitzkepp

Hi all, my fiance' and I have noted with interest the new initiative of 5% deposit (I work in that industry so am well aware the benefit isn't potentially aimed at the buyer)

It's changed my own view on when buying would be a good idea. The plan until recently was that by summer 2013 we would have approx 30k saved in deposit, and a combined gross salary of 50kpa - so we were feeling reasonably comfortable in securing a decent mortgage for a decent property first time out.

This recent news has my other half's impatient side jumping around - she's got visions of a house at the end of the tunnel a lot sooner than originally thought.

I'm looking for opinions on the following;

Is being married a benefit in a mortgage application? We're recently engaged, and by the original plan would be wed prior to buying.

As things stand we have approx 15k deposit and a combined salary of 45k - would you take the jump in the next 6 months, or hold on for another year until in the position we had originally planned to?

I know this is quite a vague question but I'm trying to gauge opinion on whether to "jump" sooner or not.

(I have a couple of credit agreements, mainly clear, bar one Tesco car loan - I have one instance of being two months late with a payment in 2010, otherwise score is "Excellent" on Equifax. Other half has nothing at all agreement-wise.)

Cheers!

Mrs_Z

Personally, I'm not a fan of the new government scheme. It is encouraging people to get on the housing ladder with only 5% deposit and it is restricted to new built property. You have to ask why that is? Because of the over supply of new built property (and therefore hard to sell). You will also pay a premium price for such property.

What would happen in few years time if you need to sell - you may have hardly any equity in the property and be stuck with something that nobody wants.

I'm old fahioned, but i'd save a 20% deposit and buy in the general market. The house prices are not forecasted to increase so you can afford to take the time.

Fitzkepp

Mrs_Z wrote: »

Personally, I'm not a fan of the new government scheme. It is encouraging people to get on the housing ladder with only 5% deposit and it is restricted to new built property. You have to ask why that is? Because of the over supply of new built property (and therefore hard to sell). You will also pay a premium price for such property.

What would happen in few years time if you need to sell - you may have hardly any equity in the property and be stuck with something that nobody wants.

I'm old fahioned, but i'd save a 20% deposit and buy in the general market. The house prices are not forecasted to increase so you can afford to take the time.

That tends to match my personal views, so it's good to see someone else sharing them - it's important not to get carried away on the hyperbole. As I mentioned, I work in the industry and as you say - prices/construction are forecast to be flat for quite some time.

Cheers for pitching in.

phil_b_2

If you can double your current deposit and increase your earnings in a years time then wait it out, you'll be in a much better position. There's not much sense in limiting yourself to what you can choose with the scheme.

I understand the impatience though... I'm generally quite impatient myself and want things yesterday! Of course, common sense does eventually prevail in certain situations.

I reckon you could start doing house viewings pretty early on though. I think it can take a lot of time and seeing different things to really nail down what it is you want exactly.

alexanderalexander

There are 5% deposit mortgages available on the general market - have you considered one of those? (I appreciate that they often aren't the best however)

I wouldn't buy a new-build specifically to take advantage of this scheme.