Buying a house - Feeling petrified

w00519772

92203 wrote: »

Hi there,

Currently in the process of buying a house. I have long thought that the housing market is over inflated, however have now concluded that irrespective of who gets elected, the government will do everything in it's power to keep prices going up ; supply side restrictions, 0.5% interest rates, Help to Buy, Funding for Lending, allowing people to withdraw their pension funds for investment etc.

I'm taking out a 25 year mortgage, fixed for 5 years @ 5.09%. We are putting down a 10 % deposit, and keeping the remainder of our savings as a rainy day fund in case anything should go wrong with either of our jobs. We will be overpaying the mortgage each month which will bring the total term down to about 16 years.

I feel worried about not buying a house and prices getting further and further out of reach, but at the same time am worried about buying at a time when interest rates have been at a record low for over 5 years and then getting stung when my fixed rate expires.

I would love to own my own house, but at the same time do not want to be in a position where I struggle to honor my debts and / or lose my home. If that were to be the case, I may aswell retain my mobility and continue to build my career.

When interest rates were at more normal rates back in the late 90s/early '00s, were typical mortgage rates significantly higher than the 5.09% I am going to be paying?

Where are you buying?

92203

w00519772 wrote: »

Where are you buying?

Hi there - Lincoln.

I grew up there, and my girlfriend's family live there. I moved away from the area in 2010 as we had to move to another city for my girlfriend's university course.

I currently live and work in the Thames Valley. Earning £35K, though need to be £60 K + to afford a house down there. Opportunity exists to progress to a higher wage and increase my skills, though I fear that house prices down south will increase faster than I can build up my wage and deposit fund! I really enjoy the job I currently have and like the people and the company I work for.

A bit worried about committing to Lincoln. Not exactly awash with job opportunities and pretty poor transport links too. When I left in 2010 I was earning £27 K P.A (£25k basic + £2k on-call) outsourced to local government. Not bad money for the area, but I know of people who work in a similar field who earn significantly less. I was stuck on £14 K p.a until 2006, and apparently, according to the local newspaper, the average full time wage in Lincoln currently stands at £17K!

My girlfriend works for the NHS and her salary is the same wherever we go, so we should be ok from that perspective! I plan on continuing to live down south for a good while, but when it is finally time for me to move back up, I need to earn at least £20k for us to get by.

w00519772

92203 wrote: »

Hi there - Lincoln.

I grew up there, and my girlfriend's family live there. I moved away from the area in 2010 as we had to move to another city for my girlfriend's university course.

I currently live and work in the Thames Valley. Earning £35K, though need to be £60 K + to afford a house down there. Opportunity exists to progress to a higher wage and increase my skills, though I fear that house prices down south will increase faster than I can build up my wage and deposit fund! I really enjoy the job I currently have and like the people and the company I work for.

A bit worried about committing to Lincoln. Not exactly awash with job opportunities and pretty poor transport links too. When I left in 2010 I was earning £27 K P.A (£25k basic + £2k on-call) outsourced to local government. Not bad money for the area, but I know of people who work in a similar field who earn significantly less. I was stuck on £14 K p.a until 2006, and apparently, according to the local newspaper, the average full time wage in Lincoln currently stands at £17K!

My girlfriend works for the NHS and her salary is the same wherever we go, so we should be ok from that perspective! I plan on continuing to live down south for a good while, but when it is finally time for me to move back up, I need to earn at least £20k for us to get by.

I am buying in Lincoln and my salary is also £35K. I am buying a 150K house with a 25% deposit. What is your deposit and house value? How old are you? I am 32.

92203

w00519772 wrote: »

I am buying in Lincoln and my salary is also £35K. I am buying a 150K house with a 25% deposit. What is your deposit and house value? How old are you? I am 32.

Snap! I'm the same age as you too, though 33 next month! I am buying a £130K house - £17 K in the bank. Started saving mid 2012 after my girlfriend finished university and got a job. It took a while for us to get back on our feet and in a position to get saving, but it has been well worth it.

I ideally wanted to hold off buying and save for another 18-24 months and build a larger deposit, however the state sponsored schemes to inflate house prices further have scuppered that plan.

Sadly, I very much doubt that I'll be able to earn £35k in Lincoln. I work in IT and as such am not paid in accordance to a national payscale.

I keep in touch with a few friends and former work colleages. A few horror stories about people being stuck on £18-19K, though some positive stuff too.

Nottingham is 40 miles away and I am confident that I could get a >£25 K job there, though the commute would be time consuming and expensive.

It's difficult - I know for a fact that the company I work for down south will look after me, both from training/development and remuneration perspectives. I just can't see my wage going up enough to buy a place down there.