First time buyer

joe_purdy

Hello

I'm just looking for advice/ people's opinion as to if i could get a mortgage

I'm 21 and i am a first time buyer

Ive seen a house i really like priced at offers around £65,000 (what would be a reasonable price to offer first)

I have a £21,000 deposit which i've worked and saved very hard for, i could maybe stretch to £21,500

I earn £854 a month, this may soon be increasing by £100 if i can get more hours at work but could be nearer to the end of the year

I have no debt/ loans/ store cards etc...

Thanks for any help

ACG

Is the £854 before or after tax?

Go in with an offer of whatever you want, they will only accept or decline and then you can go in with something a bit higher.

joe_purdy

£854 is after tax. does £55,000 sound really cheeky and too low

Annisele

It really depends.

If similar properties are selling at £50k, then the asking price of £65k implies a deluded seller who might not accept £55k even though you'd be seriously overpaying.

If similar properties are selling at £70k and the vendors have put it up at £65k hoping for a quick sale, they're very unlikely to accept £55k.

Pretend there wasn't an asking price, work out what it's worth to you, then offer that (unless you think it's worth more than £65k, in which case offer around £65k to start with).

bluesnake

look online to see how much similar houses have sold in that area, rather than the asking price.

joe_purdy

do you know any sites i can check or do that on please bluesnake?

highguyuk

I just offered 22% lower on a property. It was rejected, but no harm done...

ACG

Ive calculated your wage to be about £12-12.5k?

You could probably borrow around £50k, meaning you shouldnt have a problem buying the property even for the asking price. Just ensure you keep money aside for solicitors, valuation costs etc. (Shouldnt be anymore than £1000-1500).

bluesnake

joe_purdy wrote: »

do you know any sites i can check or do that on please bluesnake?

There are quite a few, but Scotland has a different system, so not sure about them.

Here are some sites that offer this, and you may even recognise the first one

http://www.rightmove.co.uk
www.nethouseprices.com/
www.zoopla.co.uk
www.ourproperty.co.uk/
www.mouseprice.com/
http://www.primelocation.com
http://news.bbc.co.uk/1/shared/spl/hi/in_depth/uk_house_prices/regions/html/region9.stm
http://www.propertysnake.co.uk
This should be the best, but data looks to be missing http://houseprices.landregistry.gov.uk/

and there are others too

bluesnake

If you really want to be smart, buy it but live at home, but rent the house for a few years. Get a mortgage on which you can overpay (with your share extra) and this could take a good chunk off the mortgage and put you years ahead.

Also in a few years prices will have crept up, and when you do move in, costs will not hurt as much.

However you have to be able to save, and deal with money, rather than having constant lads nights out.

kingstreet

bluesnake wrote: »

If you really want to be smart, buy it but live at home, but rent the house for a few years. Get a mortgage on which you can overpay (with your share extra) and this could take a good chunk off the mortgage and put you years ahead.

Also in a few years prices will have crept up, and when you do move in, costs will not hurt as much.

However you have to be able to save, and deal with money, rather than having constant lads nights out.

Buy a property on a residential mortgage with the intention of letting it from day one?