Advice please - First time buyer

megakid

Hi

So, I've got myself a job lined up for when I leave university in June (start date: 2nd July). I need accomodation in London. My friend also has a job starting 13rd August in London also. We have both been living together for a few years at university so we have decided to group our pennies to get a house in London together.
We know how much we can borrow (based on our salaries on a joint mortgage) and can afford a house where we want to be stationed.
We already have a mortgage pre-agreement from C&G but only based on us earning them saleries NOW (not in July)
Here's the difficulty:

We would like to avoid renting short-term when we first begin. I am training in New York for 8 weeks so I dont need accomodation in London until the start of September and my friend has his family home to live at within commuting distance until the end of August (when his family are selling and moving to America).
What advice can you give us with regards to mortgage and the house buying process?
In effect, our mortgage offers only come into effect on the 13th August (the date we are both earning!) so would it be possible to make an offer on a property, exchange contracts etc before this date and then complete after this date once the mortgage has come into effect? And if so, how do we go about this?

Any advice or help would be fantastic!

megakid

Just one more thing, Is this a usual thing to do? (Arrange a mortgage in advance but which doesnt come into effect until a set date?)

JoeK_3

megakid wrote: »

Just one more thing, Is this a usual thing to do? (Arrange a mortgage in advance but which doesnt come into effect until a set date?)

You can arrange a mortgage in principle with a lender before you find the property but I would leave it until nearer the time.

Find yourself a good whole of market mortgage adviser in the meantime.

JoeK

Merton

Why buy now in such an unstable market? Rent while it's so cheap and then buy. Save your money, don't waste it.

megakid

In my circumstances everything points to buying - I think its better to get on the ladder now rather than waiting a few years.
Plus I have 2 rooms which we're renting out will effectively cover one half of the mortgage.

kennyboy66_2

Do you not think you have enough on your plate starting your first job, presumably in a new city without buying a house as well?
It could work out, it could go badly wrong. What if either of your first jobs does not work out, or one of you wants to go travelling, or interest rates go up 2%.