First time buyer advice

ldn_millennial

Hello,

I'm in a bit of an unusual position. I'm a single 25 year old (no dependants) first time buyer seeking some honest advice about mortgages, schemes & general experiences.

I've managed to save a bit of a deposit and currently earn 46k.

I'm still quite early in my career and sure that my earnings will increase in the future.

I've looked at both the HelpToBuy schemes (equity loan & shared ownership).

Equity loan seem like a good option but I can't afford any new build properties (sole applicant) in LDN and outskirts (200k max is what I can afford)

This would mean moving further away with a bit of a lack of work/life balance.

At the same time shared ownership looks promising because there are 1 beds on offer in LDN in the 300k - 350k range. I believe I can at least get 50% easily or staircase to 100% in a few years with the right planning.

But reading all the negative experiences here makes me hesitate about SO.

At the same time, I'm tired of forking out rent.

Can anyone share some advice on this situation or Any advice. I don't need a definite answer but some personal experience

csgohan4

Don't buy for the sake of it, it will come back to haunt you later.


Equity loan will inevitably mean you will pay back more than you borrowed as you pay back the percentage of what you borrowed at the market price of the time you want to pay back.


SO as you mentioned has a few pitfalls, one of which is your market for selling will be less and you will be 100% responsible for all repairs whether you own 50% or 100%


Are you saving into a Help to buy ISA? There is no shame in renting, I rented for 10 years before I bought. It provides more flexibility in terms of where you want to stay with no strings attached in the long run.

jlaw4

Just to echo Csgohan... I've hated renting since the day i moved in. Exactly 3 years ago today and its in the north where its slightly easier to get on the ladder. I was hell bent on buying a house, however, circumstances stopped us saving for a deposit for at least a year. Now i am SO glad we waited because we got to use the HTB isa and thats boosted our savings loads and also, we had several pay rises meaning we could purchase a home we really want rather than just buying. I know i would have regretted doing it any sooner. Waiting sucks and paying rent but at the same time, if you waited a bit longer got a salary increase and had a bigger deposit, it may all feel worth it!