No deposit but want to buy, advise please

candytwinkle

What is the best way for us to get on the property ladder?

We'd be looking for a joint mortgage, Ive not owned a property before. Neither of us have bad credit history.
We do not have a deposit.

Applicant 1, 35 years old, 32,000 pa
Applicant 2, 41 years old, 16,000 pa

Ive tried looking but Im really confused.
Any advise really greatful. Thanks

mildred1978

Save a 15% deposit. As a minimum banks require a 5% deposit. You won't get anywhere with zero.

(Have you been living underground for the last 3+ years???!)

candytwinkle

thanks for reply( lol bright in the outside world isn't it)

I've never looked into buying before so didn't know what options are out there.Ive heard a lot about 1st time buyer incentives etc

originalmiscellany

First time buyer incentives normally mean a deposit of an absolute minimum of 5% but are in a very selective range of new builds, which have their own risks/joys.

You say "I've never owned a property before", if your partner has ever owned/co-owned, I don't think the first time deals are then relevant for you sadly.

The reality is you should save as much as you can in the next 12 months (aim for a minimum of 20k to be realistic - so more than 12 months to get there?) and then see where the market is taking us.

The general thoughts are that house prices are going to continue to drop for several years, with inflation added to the mix - so you may be better off saving up and then buying.

Also, you need to factor in the cost of buying, setting up and general maintenance which is always a LOT more expensive than you ever could/would imagine.

Finally, if you want post an SOA
http://www.makesenseofcards.com/soacalchelp.html

which could help identify where you and your partner could cut back to save up. E.g. someone identifying you're overpaying for gas/elec/tv/mobile/phone where you transfer and save a total of £100 a month is an extra 1200 over a year. People on this site are great at spotting where bargains can be made!

candytwinkle

Thanks that has been really helpful, ill take your advise. You have saved me hours of trawling though websites.

Wutang_2

To advise. Seek advice.

Thrugelmir

candytwinkle wrote: »

I've never looked into buying before so didn't know what options are out there.Ive heard a lot about 1st time buyer incentives etc

Take a look at the Nationwides Save to Buy Scheme also the Halifax offer an incentive scheme.

The big plus of both is that you build a savings history thereby demonstrating your ability to commit to a regular payment and manage your finances.