I think i've found a house.

firehawk_2 · 15 September 2012 at 11:41PM

Hi all.
I've been asking almost once a year on here about mortgages/housing/prices etc...
I am a first time buyer. well, I hope to be!

I want to move to the US and buy a house there. I know I can afford it for sure but for many reasons, this is not going to be a reality. at least, not for another good 15 years if that.

but anyway back home here in the UK... I think I found a house that I like. I am currently renting and paying £600/month (1 bed) + council tax.

Now, the house I found is 169,000.
I know I can put down 10-15% for the deposit. 15% is pushing it.

But what do I need or what can be done in terms of getting my monthly repayments to around maybe the same price as the rent I am paying per month?

I dont know much about mortgages so still learning.

my expenditure per month is around £300-400/month including bills and food. £100 of that is "just in case money". so really we are talking around the £300 area.

thoughts, advice and suggestions are most welcome and appreciated.

advice_please_2 · 15 September 2012 at 11:52PM

Go to a mortgage lender website
Not plugging but I'm with nationwide and their website has most basic stuff

Put in your details to see how much you can borrow first to make sure it covers it

Then have a play with type of mortgage an duration etc.

firehawk_2 · 16 September 2012 at 10:57AM

apperently 176,000 is what it is saying I can borrow.

Lizling · 16 September 2012 at 9:39PM

Right, so next you need to play around with different mortgage rates and duration, as advice_please said. There's a repayments calculator here: http://www.moneysupermarket.com/mortgages/calculator/

You've got 3 options for reducing monthly payments.
1) Borrow less in the first place
2) Find a lower interest rate (e.g. by having a 15% deposit instead of 10%, you'll get access to better rates)
3) Borrow over a longer term (but you'll have to pay a lot more back in total that way)

Fire_Fox · 16 September 2012 at 9:42PM

Don't put down 15% unless that leaves you with enough float for survey, solicitor, removals and three months mortgage payments in case the worst happens.