First Time Buyer

mattandbenny

Hi everyone.

Just wanted some advice really for me and my girlfriend that are currently saving for a deposit for a mortgage (we would be first time buyers).

We're both mid twenties, living at my parents while we save, each earn about £21k a year and have got about £25k saved so far between us; though we plan to save another £15k (£40k total) before we look to buy a place, which will probably take another 18months - 2 years.

Due to me being from essex and her from yorkshire, we have 2 options of where to live... If we got a place in essex we'd be looking at about £220k for our first house house, but if in yorkshire then about £120k. However we are currently based in essex so if we bought a place in yorkshire it would mean relocating & getting new jobs.

We just know the basics about mortgages. The main things we wondered was:

- What percentage mortgage we should get? (In my uneducated thoughts i want 20%+). Though someone mentioned the other day it might be better to get a 10% mortgage sooner before the house prices go up even further.

- Based on our circumstances (earnings, planned deposit etc), what price of house we could realistically buy.

- How much the monthly repayments are likely to be on average in the different scenarios.

- What is the most common % deposit that people do. And the most common years to pay it back.

- Your opinion on what you would do if you were us!!


Thanks in advance for any advice

Thrugelmir

Firstly you need to decide where you are going to work. For example. If you don't have a job in Yorkshire when you make your mortgage application then this will count against you.

Personally I wouldn't wish to have a £180k mortgage on a £40k income. Interest rates aren't going to remain low for ever.

If interest rates were 7% what would you feel comfortable repaying every month. That's the way I would approach the situation. Buy what you can afford over time you'll be able to move up the ladder. Once on the first rung it does get easier. Even it means starting small possibly even with a flat.

andyfromotley

Move to Yorkshire lad!!!!

(you might want to get jobs first before you buy a house though!!)