First Time Buyer - Seeking Advice!

mcc86

Hello,

I worked out last year that as house prices were stable (or decreasing), if you were renting but able to save money towards a deposit, this would make more sense, than getting a mortgage because of the interest you pay back.

I am now in a situation though that if I continue to rent, I am unable to save any money, therefore it seems that rather than fork out £600 a month on rent to pay someone elses mortgage, I may as well just get one myself!

I would be the sole name on the mortgage, I have approx £15k deposit and on a quick search on the Nationwide website, with my income, I would be able to borrow £90k. This means I have a budget of approx £105k, which doesn't sound much, but is enough to get you on the property ladder in South Wales (where I live).

I am however now stuck, as there is SO much information on the internet, I do not know where to start, about the kind of mortgage I should be looking at getting, and where to look for the best deals.

I am hoping to get some advice from others who have been in my position - if you need any more information regarding my situation to provide more thorough advice please do not hesitate to ask!

Thanks in advance

MoneySaverLog

I guess the first thing to consider is have you got any other savings for emergencies or contingencies or will the £15,000 deposit completely wipe you out?

If the latter then I'd still be saving for at least 6 months worth of expenses before looking to buy. You have the right idea though, the bigger the deposit the less you pay the bank in interest over time :-)

Thrugelmir

Have you considered the NW's Save to Buy scheme to boost your savings and improve your chances?

mcc86

Thanks MoneySaverLog - however I am in a position where I can no longer save any money, therefore I almost feel as though I have no choice but to get a mortgage, or else spend a considerably long time just renting and not saving any money, and be in the same position I am in now in 5 years time!

Thrugelmir - I have just googled, hadn't come across that, I will try and look into it in a bit more detail.

Anyone got any advise on the first steps? If I go down the route of getting a mortgage sorted, should I just pop to my bank and see what they say, or do I need to pay someone to work in my interests?

Cheers

MoneySaverLog

I've not bought a house yet, very much in the saving up stage, but I believe you have to have a solicitor do the exchange and conveyancing for you. You cannot do this yourself apparently, your bank should be able to advise further.

COLOURBOUNCE

Hi, do you know what house prices are doing in your area? It's always the great unknown, but having gone through the 80's/90's ups and downs, there is alot to be said for having a feel for what you are getting into. Get the timing right and you don't look back, getting it wrong can take a long time to get up from. As said, I would save all you can for the unexpected, but keep your eyes on the market, I don't believe you would need to rush into this, you may be rewarded for patience alone.

mcc86

COLOURBOUNCE wrote: »

Hi, do you know what house prices are doing in your area? It's always the great unknown, but having gone through the 80's/90's ups and downs, there is alot to be said for having a feel for what you are getting into. Get the timing right and you don't look back, getting it wrong can take a long time to get up from. As said, I would save all you can for the unexpected, but keep your eyes on the market, I don't believe you would need to rush into this, you may be rewarded for patience alone.

If I was able to save, then I wouldn't hesitate about waiting for the right time to buy, however if I am not in any position to save, then is it not better to buy whilst I do have a deposit available, rather go into rented accomodation and not be able to save any money and pay £7k a year in rent?

hcb42

I would start with the comparison sites, and see what lenders you might approach. You might want to investigate the banks that hold your savings/current accounts for starters as well.

mcc86

Yes, I think I'm going to speak to a broker (free fee) this week and start the ball rolling to see what my options are, and find out the exact costings so I can work out if it is a viable option.

I haven't found one reason as to why, if I can't save, it's better to continue renting, than getting a mortgage.

split_second

1. dont borrow the maximum amount you are allowed

2. dont expect to spend your full deposit as a deposit, solicitors and a survey set me back about £1k and my price range was a bit lower than yours

Joe_Bloggs

@mcc86
Check out MSE Martin's credit scoring page here:-
http://www.moneysavingexpert.com/loans/credit-rating-credit-score
It is wise to consider how your lender might interpret your credit history before applying for a mortgage. Check your data before it is too late. It is not worth applying for a credit score.
J_B.