Advice for FTB

Melissa177

If you borrow £90,000 (which is possible on an 18K salary, with someone like Northern Rock, or Scottish Widows - I think some lenders demand that you have a degree also), you're looking at repayments of £550 per month, which is quite a lot of money on your salary. I remember struggling with £500 rent per month when I first moved to London on a £22K salary. And bills were low as I was sharing with four others.

However, if you want to get on the property ladder, one has to make sacrifices. Although it might be tough at first, I think with careful planning and lots of money saving, this is doable. You're in a good position as you have a deposit, and there are properties available that will meet your budget. Don't forget that you will probably want to move in a year or two and move up the ladder as your salary and capital increase!

Try moneysupermarket.com and put in your details, and see what mortgages it comes up with. Then start shopping! It's always a good idea to have your mortgage agreed in principle first.

Good luck!

PS. Hidden costs of buying a property include:

- solicitors fees (£250 ish?)
- land registration (£150)
- survey fees (£350?)
- mortgage booking fee (anywhere from £0 to £1000 on average, depending on the mortgage)
- valuation fees (for mortgage - may be free depending on lender)
- search fees (I have just paid £400 for standard searches)
- stamp duty (won't apply to you, it kicks in at £125K)

These could be a lot higher if your purchase is complicated.

olly300

Melissa177 wrote: »

PS. Hidden costs of buying a property include:

- solicitors fees (£250 ish?)
- land registration (£150)
- survey fees (£350?)
- mortgage booking fee (anywhere from £0 to £1000 on average, depending on the mortgage)
- valuation fees (for mortgage - may be free depending on lender)
- search fees (I have just paid £400 for standard searches)
- stamp duty (won't apply to you, it kicks in at £125K)

These could be a lot higher if your purchase is complicated.

Lots of solicitors charge about £100 extra for dealing with a leasehold property as they have to deal with the freeholder, who is normally a management company and can cause lots of bother. Best thing to do is find an online solicitor and put some figures in. Also read their small print and find out what extra they charge for.