whens the right time

jasper89

hello, iv never written on a forum before,(be kind?) iv been researching alot recently on mortgage's and really dont know what a realistic deposit would be for what i may want to lend. halifax seem to think they will lend me £180,000 (yeah right!)and lloyds £90000. them numbers have only come from playing on there various calculators nothing proper i know. basically i have saved £20,000 i earn £15,500 salary and about £15000 overtime, my girlfriend of 5 years earns £12,000, im 22 years old, is it too soon to think a bout a mortgage? is my deposit to low? how much could i realistically borrow? my rent for the last 2 years has been £600 and never missed a payment does this do me favours?

i would really apreciate any advice and feedback as i have no idea what to do. the only thing i do know is im fed up of paying the landlords mortgage, thanks.

ACG

I usually work to the rule of 4x your income.
A lot of lenders would add your income together and multiply by 4. Mos tlenders only accept 50% of overtime.

So i would be working to a maximum of £140k plus your deposit.
However if you like to be on the caution side i would say £110k plus your deposit as a purchase price.

As to whether you should do it is entirely your decision, people are ready at different times. Id say be sure your happy with your partner before you do it as it is a big commitment.

jasper89

As silly as it may sound, i feel as if £20,000 would be laughed at and i would just get a terrible deal if any deal at all

ACG

10% is the minimum. As a first time buyer if you have 15% or more thats not a bad start and it sounds like your getting on for 20% if you go towards the lower figure i gave.

You need money for fees and things too but your probably there or there abouts.

It might be worth a chat with a mortgage advisor for a discussion on what you can get and what you want. Without knowing your local area its difficult to say whats possible. £120k might only get you a box in some areas or it might get you a 3 bedroom house.

jasper89

thanks for that i was hoping for around £130,000 ish.... i thought maybe i was being too ambitious, where to start? the thought of a mortgage is so stessfull and scary if you like

bigadaj

I wouldn't mind if cbr600 comments were more accurate, compared to the majority of posters on here the OP is nearly Shakespeare.

robatwork

To buy, or not to buy.....THAT is out of the question, horatio

jasper89

not you exactly but people like you. I think there called bullys?

cheekyweegit

Jasper - please don't let one silly poster put you off posting, there is a wealth of information and help available on these forums, and lots of genuine people available to help as you can see from some of the other replies here.

Good luck with the purchase when you get round to it, I'm still renting myself and considering taking the plunge, but I'm older regretting not doing it a long time ago.

ACG

I dont really want to get into a post about peoples grammer etc on a forum (but i will a little), writing on a forum isnt a formal place. Admittedly if we used language like 8 year olds on mobile phone or gangster wannabes we would be in a bit of trouble but so long as its understandable and not someone going out of their way to be awkward what does it matter?

To the OP, post any questions you like. I know i will help where possible and im sure other advisors on here will do too.

PS - not that that i was looking for errors, but i never actually noticed any. It was all understandable to me...but i was brought up in a rough part of manchester, so that may be why :-P

Joe_Bloggs

@Jasper
Stick with the MSE forums. We can all learn from each others mistakes and successes if we pool the experiences together.

One thing that is hard to take is that some people get smarter as they get older and become less tolerant of the young who may make spelling mistakes or use the wrong word.

It may seem harsh to criticise you for confusing lending with borrowing when you have mastered saving and budgeting to such a degree. Check out your credit reference agency files.

J_B.