First time buyer Northern Ireland

Johnnysmith_2

Hi guys

Im a total newbie to this :wave:

Im a single guy living at home with parents saving to buy my first home. I'll be 30 in the next year and am in a permanent job paying £20,000 pa. I have £14.5k in savings and on target to have £20k saved by this time next year. I have 1 credit card which I clear every month and have no outstanding debts (apart from student loan approx £5k). At present I comfortably save £600 per mth.

I'm trying to figure out how much I could borrow to purchase a home but am getting large variances when I use calculators on lenders websites. Realistically how much do you think I could borrow?

Please let me know if I need to put oup more info

Thanks
Johnny

duggan1

Johnnysmith wrote: »

Hi guys

Im a total newbie to this :wave:

Im a single guy living at home with parents saving to buy my first home. I'll be 30 in the next year and am in a permanent job paying £20,000 pa. I have £14.5k in savings and on target to have £20k saved by this time next year. I have 1 credit card which I clear every month and have no outstanding debts (apart from student loan approx £5k). At present I comfortably save £600 per mth.

I'm trying to figure out how much I could borrow to purchase a home but am getting large variances when I use calculators on lenders websites. Realistically how much do you think I could borrow?

Please let me know if I need to put oup more info

Thanks
Johnny

Have recently been round the houses with a few brokers and all came back saying I could likely borrow 4/4.5x income (On 28k). I couldn't get one to lend to me in NI though but that's unlikely to be an issue for you.


Bear in mind though that the local housing market here is 'interesting' at the minute...


It looks like you aren't looking to buy just yet though so I'd keep an eye on the kind of properties you are looking for, advertised prices can be erratic as many properties have been on sale for quite some time and the general feeling is that many are unrealistically priced at the minute.

marathonic

As the previous poster says, it looks like you don't intend to buy in the immediate future (considering you're talking about increasing your deposit).

I purchased in NI last December. Just to give you a rough idea of the value of properties you should be looking at, a £20,000 salary would see you max out at a mortgage of approximately £85,000.

Based on your current savings, you should be aiming for a 20% deposit - so an £85,000 mortgage and a £21,250 deposit. Therefore, your estimated purchase price would be £106,250 and you would be looking at offering this on houses advertised in the £110,000 - £115,000 range.

The above post is just so you can look at PropertyPal to see what sort of properties are likely to fit within your budget. The actual figures are likely to work out differently when you come to buy.

Mistral001

The property market seems to be a bit strange in NI. People are reluctant to sell at the minute as house prices have dropped so much.

It appears that there are a lot of houses being rented out or vacant with their owners waiting until, as I said, house prices start to pick up before they sell or even think about putting them on the market.

The people who seem to be making good deals at the minute are the people who are paying cash for auctioned off properties. If there was a way to get a mortgage or bank loan for those properties you would probably be able to afford to by one of those properties now.

Johnnysmith_2

Thanks for your reply marathonic.

I am hoping to save for the next year so as to get a decent LTV rate when I do apply for a mortgage. I had thought £110k would be the very top of my borrowing ability but wasn't sure. I have been looking at propertys at this price and didn't want to get my hopes up that I could borrow enough to purchase. Do lenders go as high as 4.5 in mutiples. I thought my max borrowing would be £80k?

Thanks

Johnny

Johnnysmith_2

Not sure that I would feel comfortable buying auctioned property, buying a home at the expense of someones misfortune doesn't sit well with me, however I understand the point you make,

chambta

Johnnysmith wrote: »

Not sure that I would feel comfortable buying auctioned property, buying a home at the expense of someones misfortune doesn't sit well with me, however I understand the point you make,

Someone has to and their misfortune wasn't your fault, assuming it even was misfortune. Better to go to you to live in than a builder to do up to sell.