First Time Buyer!!

the_one_and_only

Hi ya im hoping i can get some advice, im 18 yrs old (i know its young) and my partner is 22 we are looking to buy. Im not sure how or what are the best options for me. We live in an area where house prices are very high well they are everywhere but would prefer to buy a run down house and do it up to how we would like it. Also is there anywhere where morgage payments can be calculated.

Please helpm im a novice.....

payless

Those nice people at London & Country have calculators

http://www.lcplc.co.uk/mortgages/calculators.asp?page=cal

although for product sourcing ( not recommended unless you know what you are doing) would need to look at like of charcol or moneysupermarket

reading Martin's articles are a good start

and a couple of guides
http://www.lcplc.co.uk/pdfs/firsttimebuyersguide.pdf
again L&C
and mine
http://www.payless.me.uk/Guide.pdf ( no sales pitch in there)

Fairdo_2

With payless on this one. There are now several sites from lenders themselves where they have affordability calculators and have Mortgage Payment calculators. Although, I would always suggest these are only guides for you at this stage.

I would delve a little bit deeper with you and ask what sort of a deposit you could both stump up, aswell as what money you would need to set aside for home improvements. If you are both first time buyers and you have a limited deposit, this is often a catch 22 situation for people to buy a "run down" house to do up. This is because lenders will act on the advice of their surveyors, who will often make recommendations to put "Retentions" on properties that require any structural work. These retentions are often well in excess of what it would cost to remedy these issues, as the lender will want to protect their stake in this security. Retentions are conditions to hold back sums of money until after certain works have been carried out. The surveyor will then be sent out, at cost to you, to confirm that it has been completed to their satisfaction, before relinquishing this retention. Sorry to be a bit negative, but you must go with eyes wide open.

Probably better to look at what you can realistically afford on a structurally sound property and hope to haggle down if it is in need of decoration instead.

Again depending on deposit available, the options can vary as to where best to go.

the_one_and_only

Thanks Fairdo i am going to leave no option unturned as it is such a big step thanks for the advise.

xxx

BenL

All the major banks sites have calculators plus people like moneysupermaket.com.

My girldfriend and I bought our house just over 1 year ago and the Nationwide came out top of the lenders for us as they went to 3.5 times joint salary.

As good a place as any to start, nationwide.co.uk

Ben

Fairdo_2

Correct about Nationwide. They love joint applicants and, if you only have 5% deposit, they are one of the lenders that do not charge MIG (please feel free to ask for an explanation, if you do not know what MIG is. Just long winded if you do already know) with 5% deposit.

They do however, hate single applicants on their affordability calculator and they do not have much discretion on either over and above the affordability calculator.

Depending on credit score, the likes of C&G can come up with some astounding affordability figures. However, please bear in mind, You have to be happy that you can afford the repayments now and in the future.

You need to be aware, lenders take (broadly) the following into account:
Incomes
Credit Commitments
Credit payment history
Address and Employment history
and Deposit available (Your risk in the property)

This is very brief, but a general indication of what info you would need to provide to get answers from lenders.

terrierlady

have you thought that buying older property you may need to update and lots of lenders will withhold the cost of renovations from the loan so you may need cash put by to sort these items.
my daughter brought an older type property and put in a bathroom which the b/soc had with held the cost on, also a kitchen, once these were installed the funds were released but they had to cover the cost first so just beware of this point. Good luck in buying your first home.