Another first time buyer

Brumnick

Erm.... not sure where to start really!

Personal info first then:

I currently live at home with my parents so my out goings are very little (Company car, company phone, minimal rent etc)
I have a £9K student loan but no other debt.

I have gratuated within the last two yrs (Civil Engineering) and currently earn £23000 basic / yr (overtime £2000) with a promotion due soon (basic upto approx £27000) and also chance of earning approx £9000 / yr tax free as I work away from home and would be entitled to tax free subsistence payments.

I have £3000 in a mini cash ISA and approx £3000 in a high interest savings account.

I feel the time is right to get myself onto the property ladder but i am unsure of what i can really afford. I know the basic lending rate is 4.5 times basic annual salary which doesnt really give me enough to get what i would need (£150 K for 1 bed flat in my area). I am also aware that the £9k for tax free subsistence could not be counted as this is only payable after proof of mortgage is provided to my employer. (This payment is also not guaranteed after a yr as my current job finishes and dont know where i will be sent to next.)

My intitial feeling is that i will need at least a £10k deposit but what other costs will i need to allow for (i.e solicitors costs etc?)

Also is there a type of mortgage out there that will take into consideration my career progression ie. increase in salary?

Will an interest only mortgage be suitable for first three yrs so that i can get on the ladder as soon as poss, knowing that i will be earning more in 3yrs?

As you can probably tell i'm a little confused right now so any help is fully appreciated!:o

Thanks in advance,

Nick

gjwillso

Hi there Nick,

I'm in pretty much an identical situation and would be very interested in any advice from the mortgage masters out there !!!

Cheers,

Greg

Mr_helpful

It is probably possible to get 5X sal for a graduate. You will need about £2700 for fees ie stamp duty, solicitors and valuation fees. If you can get 5% deposit I could probably get you that flat after your pay rise