first time buyer advise please

ktcoil

Hi Guys
me and my parter are currently renting a flat and have realised that this is dead money because when we get to retirement age and we dont have our own palce, how do we still buy things and pay rent etc, we have decided to need to save and get a house of our own with a garden, we are 29 and 27 year olds and we get about 36,000 between us, we were looking at house prices about £80-£90,ooo as think this maybe best price for us to afford and get deposit saved for, does anyone know how much we will need to save for a morage for a price like this, also what other items we will have to pay out for when buying a house with costs?, also can we take out a little extra mortgadge to get a few new items like furnature or would we have to save this money as ewell? also if there was a house that maybe need a little work or new kitchen etc can this money be added or again would we have to save for this? or is there a way of getting a loan ontop of the mortgadge for furnature or new kitchen etc?

we have only started saving so not looking at doing till 2016 unless we can save a lot for next year lol :rotfl:

thanks

stator

Essentially you need 5% deposit + £5k for fees and moving costs (although it's possible to do it for less). You can't add things like furniture or home improvements to the mortgage. In the position of a FTB with a high LTV ratio you will need to look for houses that you can live in, not ones that need doing up.

Jeff_Djevdet

Hey, I would say a lot of people are in this situation. Speak to a financial advisor or bank but don’t give any money at this stage.

I think you’ll need 10% + but the Help to Buy Scheme may assist you. The mortgage is on the property not stuff like furniture so be sure you leave enough for the essentials but you’ll feel hard up for a while as moving is expensive.

Good luck with it.

cattie

You are still quite young so shouldn't feel forced into buying a property too soon without a financial cushion behind you. Far better to take a bit longer to save a decent deposit & enough money for furnishings etc. than rush into buying with barely enough money to cover the basic costs, only to end up with the threat of repossession a couple of years or so down the line should one of you be jobless for any reason or some similar occurrence that can affect the family income.

In answer to your worries about how to cope with paying rent etc. when retired if you don't own your own property, well you claim housing benefit to cover the rent & probably would qualify for other benefits too.

In many instances, people who haven't managed or bothered to save towards a little retirement nest egg & are in rented accommodation do actually end up far better off financially due to the means tested benefits that they are able to claim & the fact that they don't have to pay out for repairs & maintenance & general upkeep to a property as a homeowner has to do.