First time buyer advice needed

Ace01

Hi,

I'm wondering if some people can give us some advice on first time buying. Me and my partner have seen a really good property that we are interested in. The value is £95,000. Unfortunately, we have nothing saved for this at the moment.

My partner also has debts going back to when she was a nurse student which total up to about £20k. She also has a car loan for about £3k, and credit cards totalling £10k. She earns roughly £20k pa.

Me on the other hand have no savings, but just 2 credit cards worth £2k to pay off.

My salary at the moment is £16k but am in the process of getting a new job with a potential salary of £24k+.

Can we get this property in any way at the moment?

We would be very appriciative, if some people can advise us before we go out to mortgage lenders etc.

Thanks

Running_Horse

Nationwide do a mortgage calculator:
http://www.nationwide.co.uk/mortgage/homebuyers/calcs.htm
as probably do most lenders.

You will be surprised and maybe a little frightened to see how much you can borrow. My advice (for what it's worth) is not to borrow the maximum allowed in the current market.

Doozergirl

Your girlfriend has debt amounting to a years salary! It's fair to say it's going to take a while to shift I really think you should be dealing with that before you even consider buying a house. She needs to take full responsibility for her finances before taking on the massive responsibility of a house and all it's associated costs

I'd say that you need to visit the debt free wannabe board and at the very least, help her to budget properly and start making big moves to reduce that debt.

Then in a year or so when you have you new job with a decent salary and she has less debt, you'll be in a healthier position. Ideally, you need a deposit to give you a better interest rate and to protect you from negative equity.

I wouldn't worry about this house they come up all the time - really. Your girlfriends debts will affect the amount you can borrow plus with a 100% mortgage your options on lenders are greatly reduced.

steb4life

Ace01 wrote: »

Hi,

I'm wondering if some people can give us some advice on first time buying. Me and my partner have seen a really good property that we are interested in. The value is £95,000. Unfortunately, we have nothing saved for this at the moment.

My partner also has debts going back to when she was a nurse student which total up to about £20k. She also has a car loan for about £3k, and credit cards totalling £10k. She earns roughly £20k pa.

Me on the other hand have no savings, but just 2 credit cards worth £2k to pay off.

My salary at the moment is £16k but am in the process of getting a new job with a potential salary of £24k+.

Can we get this property in any way at the moment?

We would be very appriciative, if some people can advise us before we go out to mortgage lenders etc.

Thanks

My girlfriend is in a similar situation with debt (and incidentally got the debt from being a student nurse too - they must have a good time at Uni :rolleyes: ). It might be worth you buying the house on your own and then she contributes to the mortgage. I don't know what the situation is with your parents but could they help with a deposit?

With regards to your missus' debt, try and help her get that sorted because that is only going to hang over you and 23K adds up to a lot of interest (even an SLC one!).

Another alternative may be to look at Northern Rock they do 125% mortgages of which they may let you consolidate your partners debt. It may work - It may not!! It didn't work for my missus but then she'd only had her job for less than a year, moved back in with her mum in the last year and wasn't on the Electoral Roll - NO CHANCE!!!

dolce_vita

steb4life wrote: »

Another alternative may be to look at Northern Rock they do 125% mortgages of which they may let you consolidate your partners debt.

:eek:

OP whatever you do, ignore this advice above.

You should be concentrating on getting your spending under control, clearing your debt and then think about getting a mortgage.

steb4life

dolce_vita wrote: »

:eek:

OP whatever you do, ignore this advice above.

You should be concentrating on getting your spending under control, clearing your debt and then think about getting a mortgage.

I was merely providing options:A - The way the market is at the moment how is a person supposed to get on the ladder. It could take 10 years to clear that debt and what are they going to do for a decade - rent (dead money), accumulate interest on the loans (more dead money) or live at home with mum and dad (not exactly your own space). At least with this option the money they earn is paying the mortgage, they can scrimp and save, overpay the mortgage and/or reduce the term when and as their situation improves, I doubt as a nurse she is going to have a problem finding employment (My Lass is always telling me that there are loads of jobs on the NHS portal). It IS A BIG DECISION because he will become jointly responsible for her debt but I don't think this should be ignored - it is an option.

I tried to clear my student debts first and if I had just bought the bullet 5 years ago I would have been able to buy the property I have now for £70,000 cheaper and it would have been paid off by now too because my circumstances changed - which was nice but I am not seeing the benefits I could have.

Ste

dolce_vita

steb4life wrote: »

I was merely providing options

What options? Getting further into debt and being in negative equity from the start? That is financial suicide in the present climate


The way the market is at the moment how is a person supposed to get on the ladder.

What ladder?

At least with this option the money is paying the mortgage then they can scrimp and save, overpay the mortgage and/or reduce the term when their situation improves.

And what about the other debts which have been added to the mortgage in the form of a charge on the property? And what if interest rates go up?
And what if things don't improve? Will they still be ok then?

I tried to clear my debts first and if I had just bought the bullet 5 years ago I would have been able to buy the property I have now for £70,000 cheaper and it would have been paid off by now too because my circumstances changed - which was nice but I am not seeing the benefits I could have.

If you could have bought 5 years ago and have paid off your mortgage by now, then that is some change of circumstances.
That is down to luck and HPI. The OP may not be in the same situation

Ste

125% mortgages only appear at this stage in the cycle when prices are too high. The same as 30 year mortgages and shared-ownership schemes and 5,6,7 times salary mortgages etc....
The same happened at the end of the last boom just before the plug was pulled.
The times are changing and people who partake of these offers are going to get a harsh lesson in economics.

steb4life

Double post - Sorry

steb4life

Quote:
Originally Posted by steb4life
I was merely providing options

What options? Getting further into debt and being in negative equity from the start? That is financial suicide in the present climate


The way the market is at the moment how is a person supposed to get on the ladder.

What ladder?

At least with this option the money is paying the mortgage then they can scrimp and save, overpay the mortgage and/or reduce the term when their situation improves.

And what about the other debts which have been added to the mortgage in the form of a charge on the property? And what if interest rates go up?
And what if things don't improve? Will they still be ok then?

I tried to clear my debts first and if I had just bought the bullet 5 years ago I would have been able to buy the property I have now for £70,000 cheaper and it would have been paid off by now too because my circumstances changed - which was nice but I am not seeing the benefits I could have.

If you could have bought 5 years ago and have paid off your mortgage by now, then that is some change of circumstances.
That is down to luck and HPI. The OP may not be in the same situation

Ste

125% mortgages only appear at this stage in the cycle when prices are too high. The same as 30 year mortgages and shared-ownership schemes and 5,6,7 times salary mortgages etc....
The same happened at the end of the last boom just before the plug was pulled.
The times are changing and people who partake of these offers are going to get a harsh lesson in economics.

---

With regards to the luck and the HPI - It was but then that's the nature of the beast. It would not take me long to clear a £20,000 mortgage (that's only £4,000 capital p/year + interest) - which is what my property was valued at - you should look at the "how to clear your mortgage pages" and some of those guys have MAHOOSIVE mortgages and have paid them off in less time!!! It's all about what you're willing to sacrifice!!!

Interest rates are going up - so opt for a long term fixed rate now before the fixed rate option available down the line are even higher - putting them more in debt when they eventually choose to buy!

Negative Equity - Well we all might be feeling that, but they are in negative equity at the moment as people with nothing to show for it at all. at least they would have a house!!

I agree that prices are too high and I agree that people are going to hurt when the bubble bursts. Times are changing but not that quickly and things like shared ownership etc that wasn't so prevalent a couple of years back are helping to keep this price boom buoyant. They have debt, they have no home. If they are frugal and plough as much of their disposal income (see post on the mortgage pig - I liked that one) into overpaying their mortgage then I believe in the long run they will be better off. I am helping my partner get of her bad debt and she has made some massive sacrifices and is really cutting a chunk into it but then she can live in my home rent free! It's just my opinion and I am sure they have enjoyed reading our verbal swordfight. I think your points are both valid and valiantly dictated, I just offered my opinion and I feel your biting my head off _pale_!!!

dolce_vita

That was so good, you had to post it twice :rolleyes:

I didn't mean to bite your head off. It's just that telling someone with all that debt to take out a 125% mortgage at this stage of the cycle is not good advice.
HPI will not rescue them.


By the way, i hope you've not wasted too much money on your new business.

steb4life

dolce_vita wrote: »

That was so good, you had to post it twice :rolleyes:

I didn't mean to bite your head off. It's just that telling someone with all that debt to take out a 125% mortgage at this stage of the cycle is not good advice.
HPI will not rescue them.


By the way, i hope you've not wasted too much money on your new business.

I wasn't telling anyone, not everybody has the 'sweet life' so they have to get by. I think that this detracted from the fact that I actually suggested two other routes to look at first. I take it from your lack of acknowledgment, these were to your satisfaction?

As for me I believe that in life the only thing wasted is opportunity, I'm sure many an entrepreneur and inventor has been similarly chastised.

Didn't someone once say that if man was meant to fly, God would have given him wings - Or maybe you holiday in the UK???