Looking to buy my first house

awesomesj

So... I'm coming to the point where I believe I have enough money to buy my own house/get a mortgage!

I'm lucky enough to be able to save £1000 a month as I still live at my parents home and don't need to rent anywhere - Ive been saving for almost 3 years and will have around £30,000.

Now I'm not a fan of living at home, but it's much more cost effective for me and has put me in a good position.

I'm looking at a 2 bedroom house to be honest - i'm hoping the £30,000 deposit will allow for me not to have a massive monthly repayment on my mortgage.

I was wondering what sort of price of house i'd need to be looking at for me not to have a huge monthly repayment

minipenny_2

I think it would depend on the type of mortgage you get. rates etc.

Each bank usually has a calculator you can play with

heres halifax's (I dont work for them it was just first I found on google lol)

http://www.halifax.co.uk/mortgages/mortgage-calculator/calculator.asp

I did a trial and it came out at if you borrowed 100k over 25 years it'd be 595 on a fixed rate mort from them...... (That may be wrong I complately forgot when I closed the page if it was 495 or 595 lol!)

But you get the idea - just look at each banks webpage and it should give you a good idea HTH

R_P_W

Depends what you would consider a huge monthly repayment?!

The amount you are able to borrow and what you can afford to pay will depend on what you earn minus any other existing commitments.

Also, which area of the UK are you looing to buy? If its not in London or the SE then your savings for a deposit look pretty good.

DannyboyMidlands

There are lots of variables. You get a better rate and therefore lower payment with a bigger deposit.

So if your deposit was 20% of the property value, the house price would be £150k.

awesomesj

Thanks for the replies - I shall have a play around with the link provided in the first post

The area is probably Bedfordshire, although surrounding areas are a possibilty too

£500-600 was the kind of amount I was expecting and could afford, although for obvious reasons the lower the better! Ive been looking around at houses in the £130-140,000 range so a mortgage of 100,000-110,000

19lottie82

Remember you will need £££ to cover legal fees and to furnish your new home. Let's call this £5k to keep things nice and simple.

a 25% deposit will get you a good interest rate, so if that is what you chose to go for then you could buy a property of £100km with a £75k mortgage which would cost you about £350 a month, depending on the rate.

As you haven't disclosed where you live / want to buy, there is no way of us knowing if this is a realistic budget for a 2 bed.

If not, £25k could be used as a 10% deposit, which means you could buy a £250 k property, if your salary allows it. The interest rate would be higher, as would the loan, so this could work out around £1128 a month.

Big difference, which is why you would need to dsclose more info for better advice.

Both figures based over a 35 year term.