To wait or not to wait

Dribiddi

After 4 years of renting I now feel ready get a mortgage.
The quandary I have is as follows -
: whilst I have a good credit history and a decent enough deposit saved, not a huge one but enough, my partners credit history isn't good. She has x4 defaults, 3 of which will drop off in the next 12-24 months and the last one 2019.
With a lot of the help for 1st time buyers being for new homes, my salary isn't enough on its own to get me a mortgage for a new build. I am unsure if I should wait until we can get a joint mortgage for a new build and take advantage of the government schemes or just forget this and get on the ladder asap.....
I live in Scotland btw if that makes any difference

Crashy_Time

https://forums.moneysavingexpert.com/discussion/5640150

Dribiddi

Interesting. To wait I assume is your advice?

Mickygg

I don't see Crashys posts anymore as they are always a load of nonsense. I can guess he has posted about house prices falling and to wait. He has been saying house prices will crash for years, and all they have done are continually increase. Ignore whatever this joke posts.

Davesnave

I was going to say "Cue Crashy!" but alas, too late!:rotfl:

FWIW I don't see prices in most of the nation taking a sharp upward turn any time soon, but nor do I feel that anyone should hold off buying because of impending financial armageddon.

People should buy when they can afford it, allowing some wriggle room for a rise in interest rates.

Personally, I'd not want a new build as that would mean I'd be in negative equity as soon as I walked in the front door. I also don't believe many new houses have the space or build quality I'd be looking for.

PixelPound

Do you have a burning desire for a new build, or is it purely because thats what the HTB schemes deal with, e.g. if you bought now, would you want to sell and go for a new build when you could get a joint mortgage?

mysterymurdoch

People like Crashy wait and wait, they see their lives out paying off someone elses mortgage with their rental payments and they'll never buy a house. Most people on here have hit the ignore button on such uninformed posters.

I agree 100% with Dave, why would anyone want a new build? They're soulless, flimsy, expensive houses. Surely you can do better with a smaller budget.

Dribiddi

nic_c wrote: »

Do you have a burning desire for a new build, or is it purely because thats what the HTB schemes deal with, e.g. if you bought now, would you want to sell and go for a new build when you could get a joint mortgage?

Em not sure it was from the point of getting the gov assistance.
More I think about it though waiting 2 years = £12,000 + in rent that could have went to a mortgage so think I'll just bite the bullet

SavvyStudentSaver

Now, I'm not a regular poster, having only just returned to the forums, but I'd be wary of assuming what you pay in rent over the next two years would be entirely lost

If you're able to save money whilst in rented accommodation, then that may well help you save money over the entire mortgage term in the long run

For example, at an interest rate of 3.44% over a 30 year term, a the repayments on a £90,000 mortgage (assuming £100,000 value with 10% deposit) would come to around £145,000
Save up £200 a month in a Help to Buy ISA for 2 years (assuming no interest), and no real change in House Prices, that mortgage becomes £84,000, with around £135,000 repayable over the same term, assuming the same interest rates.

Now I know this isn't as much as you've said you'd pay in rent, and when you take into account the fact you're putting in an extra £4800 of your own money the difference is smaller still. However, I just wanted to put this out there to show that there are possible upsides to spending longer in rented that may offset the rent payments. Also bear in mind these figures could be different if a) you're able to save a different amount each month, b) the house is a different value, c) you have a smaller deposit, d) having a larger deposit may reduce the interest rate you pay

Now I've also said I assumed house prices and interest rates would stay the same. In fact, house prices could change in that time, and interest rates could go up, but house prices are always a gamble- they could go either way- and if you opted for a 2 year fixed interest rate, you'd be facing exactly the same interest rate change if you bought now compared to if you bought in 2 years anyway

I'm not trying to say do something, or don't, just don't assume that you're currently wasting money in rented that you wouldn't be if you bought a house

I hope that helps- sorry if the tone is off or anything- I'm a bit rusty

noddynoo

I would wait as although everyone has nothing but harsh words for crashy I think his day might be coming I work in property but not buying etc maintenance and mainly BTL landlords and they are selling up at a rate of knots and say they are taking big hits as they think nothing is selling and a correction is on its way. Nothing to gain for me saying this as it will potentially cost me my job or at least cut the hours drastically I am in teh SE

Crashy_Time

noddynoo wrote: »

I would wait as although everyone has nothing but harsh words for crashy I think his day might be coming I work in property but not buying etc maintenance and mainly BTL landlords and they are selling up at a rate of knots and say they are taking big hits as they think nothing is selling and a correction is on its way. Nothing to gain for me saying this as it will potentially cost me my job or at least cut the hours drastically I am in teh SE

Hundreds of posters will be putting you on "Ignore" this very second :rotfl: