1st mortgage

tbkbt

Hi all, i have a few questions on mortgages after i've read the MSE guide. Me and my girlfriend(marrying next year) are looking into getting our first place together, we're fed up of crap landlords and whatnot.
We have a deposit of £20K(partial inheritance, mostly saved by me)currently which will start growing again in september. we currently earn £12K and £9K a year each, mine(£9K) will go up around £5k a year in september each year as i recently started a new job as an electrician and my apprentice rate rises to £26K once finished, this rise is guaranteed as long as i am in employment.
I have put our figures into the MSE borrowng calculator and it comes up wth £58K, am i right in thinking if we got the maximum we also add our deposit value so can look at property upto £78K? I quickly compared mortgage rates on this value and the monthly repayment were £50/100 less than our current rent.
we have also done some other calculators such as halifax which say upto £68K borrowing but not sure what to make of the figures.
Also property we are looking at now would be something like a 2 bed flat but in the future a 3 bed house or something similar, how does moving the mortgage work, do we need to gather another deposit for the 2nd mortgage can do we add to the current mortgage?
Also just for some info neither of has had any loans or defaulted on any payments, i have 2 credit cards(one for use abroad) which are paid in full each month.
thanks for any help you can offer.

dimbo61

Hi,
Well done on saving £20K which is a very good deposit considering what you currently earn ( I know some has come from an inheritance )
Yes you add your deposit and what you can borrow together to get the figure for the property you want to buy.
Now I read that you are not happy renting BUT if you wait a little longer for your pay rise and save more you might be able to buy a 3 bed semi rather than a 2 bed flat with nieghbours above and below you plus at the side!!! Most flats have Management charges and a free for all when it comes to parking!!
I have no idea where in the country you are looking but if you can get a house I would every day over a flat.
You can use the equity you have built up ( including your deposit) in your first property as a deposit for the second property.
Normally I would also say go for a modern property with modern electrics, gas central heating, good insulation and plastic double glazing so you have a home to come back to after a hard day at work and not a building site BUT IF YOU ARE IN THE TRADE !!!! maybe a refurb project ?
Keep saving and good luck

tbkbt

Thanks for the info, i used to earn more doing my old job but wasn't happy with it so fancied a change before i got too old to change, we are 24 and 22 btw. It's Dundee in Scotland were looking to buy(or any surrounding area).
The reason we were thinking of buying a flat was mainly to avoid throwing money away on rent(so to speak) but also to get a feel for the area we want to move into, we think the area is nice but we don't want to buy a 3 bed semi an find out its actually crap . The flats were looking at all have DG and GCH, we stayed in a flat without for a year and i will NEVER make that mistake again, i think its something everyone really should experience, only once lol! also designated parking is a must, our current flat is near to a footy stadium so really glad to have private parking.
For our large family home we do fancy buying basically some walls with a roof and we would do the rest, we would probably gut it anyway to get it to our liking, no point paying the previous owner to have done it.

Thanks for your help.