First Timer buyer needs help...

K9cuddles

Okay.. had a chat with my mam the other day about house prices etc etc.

I've just turned 25 and live with my rents.. well parent!. I've been saving for the last year but only have 2k savings (currently have round 18k of debt :rolleyes: ). Anyways my mum has a 2nd property on BTL. She's willing to remortage to give me deposit money. I think the min will be 18k not sure as we've not had any valuations yet.

Anyway.. what do I do??!! Any options means taking a risk but I guess it's a opportunity too good to turn down!!

1) Stay living at home buy a 2 bed flat for BTL, in my name to get me on "the ladder" looking at round £120-£150k

2) Move out - however if I do this I need:

a) Large Garden (for dogs)
b) Would like to be very near my mum (due to dogs!)
c) I couldn't afford the monthly repayment on my salary so need min 2 bed and rent a room out. Looking at 180k-200k

3) Let my mum stick to her orignial plan of using the money to extend on our current home so we can have lodgers.

As I said I'm 25 and starting to feel the itch that I need to fly the nest, however my current situation suits me and my mum really well. Both my older bro's left when they hit sixteen and my mum's a single parent so just us too have co-habited for nearly 14 years! It would be easier if we didn't have dogs (there kids that never grow up), but it's shared hobby and I couldn't possibly leave her with all the dogs she wouldn't be able to cope and she's just made a large investment in external kennels.

I feel like I'm in catch 22, I want to go but seems there's too many reasons not too! I feel if I leave it any later I could be way outpriced!!

steveandel

Just my opinion, but I don't think i would risk moving out if I still had £18k debts. No matter how well you think you budget what you've got there could be unexpected extras in the moving process which require money but also once you move in somewhere you'll almost certainly want to start doing things to the house understandably. If I were you I'd stay at home for a year or two and really really try hard to clear as much of the debt as you possibly can, even if it means changing your lifestyle, and then think again about it in a year or two.

Feanor

Hi,

I agree, i dont think it would be wise with 18k of debt. Also, you say you have 2k in savings already. You know thats the golden rule, use savings to pay off debt asap!

Also, your mum would give you the deposit money, but the mortgage company would still take the 18k you owe off the amount you can borrow in most cases.

I think you have a great opportunity to stay at home in a nice environment (with little or no rent to pay?) and can pay off as much of your debt as you possibly can.

I understand where you are coming from with being out-priced, but it depends whereabouts you are in the country as to how much this will effect that?

F x

nelly_2

Wouldnt it be far easier for you too just buy your mams other house?

K9cuddles

Thanks for your advice.

I'm in the south of England so I'll be easily outprice (if not already!!).

I've been trying to reduce my debt since Nov 2005, TBH £12k of my debt is my car so I could down size if need be. I know the golden rule about savings and debt I feel more comfortable with a small buffer (mainly for car insurance, insurance excess, MOT, Serivce etc etc).

My mum won't wanna sell her price as she want's it for investment.

Oh yes, I can't grumble about my rent at home! I know where my breads buttered! I'm just don't wanna be stuck here forever!!!