Help!

jkandramk

Me and my partner have just graduated and started our jobs. We'd love to buy a flat in the area we are renting and we would really appreciate some advice on what money we might be able to borrow...

We're earning about £22k each, we like the idea of a fixed rate and we're happy to pay it back over any period of time (40+ years). The flats around us range from £180,000 to £240,000. We have no savings at the moment but also have nothing to pay back. I would assume we need a 100% or 105% mortgage to pay for all our fees, etc. Is anybody likely to give us that much?! How much should we expect to pay back each month?

jkandramk
Glasgow

homer_j_3

you could probably get a flat at the lowest end with no savings - whether you can afford it, is a different scenario.

What rent do you pay?

What will the mortgage payment be? On a 7% repayment mortgage over 35 years, you will be looking at 1150 approx per month.

If its cheaper to rent, I would save the difference for a year and see what interest rates do and see what effects the interest rates have on the housing market.

jkandramk

Thank you for your advice! It is much appreciated. It has certainly given us something to think about.

Jonbvn

Give yourselves a year or two of work, so that the lenders will appreciate that you are likely to be reliable borrowers, with steady jobs. This will give you some time to build up some savings as a deposit. Lenders really like that, and will give you a better interest rate.