House purchase

dsme94

Hi,

I'm looking to purchase my very first own home at the end of the year. I am planning to open a Santander ISA (4% interest) and pay into it every month for my deposit.

Is there anything else I should/could be doing?

ElsieMonkey

You could make sure your credit rating is good, and if not work to improve it.

Good luck!

dsme94

Credit report is all good.

Is now a good time to buy?

G_M

Next week would be better.

Seriously - it depends which way the referendum goes, and how it affects the property market........

kinger101

If you're under 40, I hope you mean the HTB ISA.

https://www.helptobuy.gov.uk/help-to-buy-isa/how-does-it-work/

ERICS_MUM

You could start researching the cost of running your own home. Council tax, power, water, buildings and contents insurance. Furniture and kitchen equipment, bedding etc etc. Ground rent and service fees if buying a flat. I know you'll get only very rough figures but it will come as a shock ! You can then work out your potential outgoings per month on top of the mortgage !

When my nephew bought his flat I took him shopping in IKEA and Dunelm Mill just for basics and we spent £600+, cheap stuff just to get him started. Nearly 3 years on he has replaced much of it with better quality stuff more in his style for longer term. This was the only way he could afford it.

It's worth the initial struggle, you will find that things get easier after the first year as you'll start to find ways to economise on just about anything you control.

Good luck !!

dc197

Start looking on right move to get a feel for the market in your area. See how long it takes properties to sell, prices, etc.

Penelope_Penguin

dsme94 wrote: »

I'm looking to purchase my very first own home at the end of the year. I am planning to open a Santander ISA (4% interest) and pay into it every month for my deposit.

Congratulations! Do you have a feel for how much deposit you'll need to buy your home? If you fund your ISA to the max (initial £1200, 6 months of £200 each, 25% government bonus, interest for 6 months) you'll have about £3060. Do you have other savings?

anto164

Just one thing to think about - The housing market goes stale around November until February, if you're looking, look just after summer, or wait until next year. This means that you may be able to save more than you thought, or less. Don't forget, you'll need another £3-4k on top for fees / Solicitors / stamp duty etc.

We started looking in early October 2015, and found a property just after the new year, however the market slowed a lot near mid November, and didn't pick up again until February. we just got lucky and found a house just before it went on the market that we fell in love with in Jan this year.

ElsieMonkey

dsme94 wrote: »

Credit report is all good.

Is now a good time to buy?

Not sure there is such thing as a good or bad time to buy. Not sure where you're located but, in general I'd say the sooner the better since prices, although levelling out a little, are still rising. So I wouldn't be waiting for a property price crash, if that's what you mean.

The market tends to slow down a bit from mid-June when schools break up for summer holidays, and pick up again in September. But then it tends to go quiet again in November until the new year. However, still worth shopping around in those quiet periods as you may find something that has been on the market since the busier period but never sold, so you may have less competition and more negotiating power if it's still on the market during the quieter periods. Think the days of bargains are gone though - it's a sellers market out there at the moment I think (not aggressively, but I think the scales are slightly tipped in the sellers favour, because there's not much property on the market at the moment for some reason).

dsme94

I'm looking at a 10000 deposit excluding any government grant or interest.

I'm looking to buy around Christmas time, or early next year given I do not find what I'm looking for.

Can the help to buy ISA be used on old houses(not new builds)?
Is there any benefit from buying a new build?