Some advice for FTB

Car81

I'm planning on looking for my first house in about a years time once I've built up my savings.

I'll be looking at flats at approximately £75k
I earn £29k per annum

I currently have a deposit of £8k saved

I have one loan with £15k outstanding which I'm paying back at 460 per month.

My question is, over the next 12 months I'll have about £8k more in savings, bringing total savings to £16k. I'm wondering if I would be better to pay half to the loan and use half as deposit, or to leave loan to run for 34 months and have a bigger deposit?

I'm just looking for some general advice on this just now.

ACG

You would just need to do the figures at the time.

Chances are your going to be financially better off paying down the loan but without any rates its impossible to say.

amnblog

In a year's time we could be on our third general election.

Far too early to know what the market will be like then.

Car81

Hence the request for general advice.

ACG

General advice, in a years time sit down with the rates and the balances and do the sums.

I realise its an exciting time but its impossible to answer your question with any conviction.

Car81

Good lord, didn't expect this site to be quite so patronising.

And I'm not entirely sure why anyone would consider asking a pretty general question a year before an event an "exciting time".

ACG

Patronising? Your asking for general information.
Nobody here is psychic, rates available at the time could be 2% or 6% - that is going to make a huge difference to the advice given.

I assumed it was exciting as you are planning on buying your own home, most people I see who are buying their home tend to be a little happy about it.

Southend1

Why do you have £8k savings and a £15k loan? unless you're getting market beating savings rates that isn't likely to be a good position. Consider paying down the loan but keeping an emergency fund of say 3-4 months outgoings. Then start saving your deposit.

MoneySaverMick

Yeah i agree, personally I think you should use about 5k to pay off some of that loan. You'll save alot in interest.

Are you looking to borrow 75k or is that the value? I.e with a 10% deposit would you then borrown 67.5k?

csgohan4

I'm afraid with that much of a loan you are not going to get a mortgage, at least of the size you want. Try inputting your details in mortgage calculators in lenders as well as the MSE one.

Car81

I have the loan as unfortunately my personal situation left me with no other choice than to borrow.

I have emergency savings out with my deposit.

The value would be around £75k, so the borrowing would be less.