What would you do in my situation? Your property tips to a first time buyer?

EmmasWorld

Hey guys,

So I'm looking at buying my first property soon-ish.

I'm self employed, my books look terrible, - 14k earnings, technically I'm more like 30-40k but my books don't show it (they will in 1 year 6 months).

My partner has a small job trying to get full time, currently around 8k/year part time while volunteering. So between us we have say - 20k per year income.

We have a deposit of £55,000 - £60,000 between us (we are good savers).

We can't borrow a lot (given) - we've tried guarantor route, still no good.

We've seen a house we like that's £173,000 but can't afford it.

I've read lot's of advice saying, different things:

1) Get the biggest mortgage you can sensibly afford and pay it off, hope house price goes up.

2) Buy the biggest wreck you can afford and do it up. (I have the skills needed).

3) Get a small mortgage and pay off asap.

I just wonder what tips and advice you guys would have? I hate the idea of having a mortgage and always have, I realise there is no choice but trying to work out the best way of going about it.

The thought of paying 200k+ back on 100k really bothers me lol.

Thanks,
Emma

ACG

£14k + £8k = £22k.
At best your going to get £99k (4.5x income) + your deposit.
Your not going to get to £173k.

Aside from that there are so many questions and comments - this will be a case of getting what you can get. Your not going to have the choice of lenders I wouldnt have thought if you want to get anywhere close to £170k.

Why do your books show £14k but it will take 18 months to get another set? File your accounts the first possible day you can, you should not have to wait 18 months.

As for what you should do - thats entirely your choice.
Personally I went for a house that was worth about 30% more than I paid for it but needed a fair bit doing on it.

getmore4less

If you borrow £100k @ 5% on repayment
interest, years, payment, average cost to rent the money per month

£75k 25y £585pm £250pm
£58k 20y £660pm £241pm
£42k 15y £791pm £233pm
£27k 10y £1060pm £225pm

It does not have to be £200k to borrow £100k

and if you factor in the I would have had to pay to live somewhere I am renting money rather than a property that reduces the extra cost.

If you cant get a bigger mortgage but can generate the cash flow then a fixer upper is the way to go also if you get it right you generate equity without interest.

Or wait till you can borrow more.

warwicktiger

For s/e borrowers lenders usually average 3 years accounts, so even if your income jumps from £14K to say £30K the average will not climb that quickly. In addition violent fluctuations would be queried by most lenders, after all, what goes up can come down.