100% Ftb

marginalone

He charges a fee through whatever mortgage package I go for if memory serves..

I saw a flat for £105k that Ive seen twice, Im still slightly scared of this mortgage processes.. Its a lovely little flat, bedroom is a bit smallish, but as a FTB it would do..

poppy10_2

If you haven't been able to save anything at all over the past few years, do you really think you sill be able to cope with an increase in your monthly outgoings from £450 (rent) to £750 (mortgage)

carolt

Out of interest, do you have a fallback position if prices do not rise? How would you cope if prices stayed static, meaning you bore all the costs of buying/selling yourself? Or what about if prices were to fall - would you be able to bail yourself out of negative equity or stay put in your flat for longer, until prices had risen back to the level you bought it at?

Prices can fall as well as rise. And if you're approaching 30, you might not want to be stuck in a small flat if you're thinking long term of kids etc.

Don't want to rain on your parade - but leaving yourself £833 per month after mortgage costs does seem pretty risky to me - how would you afford it if your flat needed major repairs - new heating or something? I'd cost it vary carefully first....

Remember - some of those on here saying it's how they bought their place did it a bit ago, when prices were still rising. They may continue to do so - but I would build a backup plan into your plans if you haven't already done so.

For example, Nationwide announced today that they were expecting 0% house price inflation over the next few years, due to the recent credit crunch.

For a less rosy viewpoint, see here:

http://business.timesonline.co.uk/tol/business/columnists/article2709694.ece

Good luck!

marginalone

I would survive I guess Carol. One thing for sure is that I dont blow money. I am a good saver but I have spent a lot on furniture etc etc this year..

I saw a 2 bedroom flat for £107k which would last me a good number of years. Ive been told that the mortgage over 35 years would be £670 to £700pm. IS THIS THE BEST OFFERING?

I know that £833 might not be a lot left over for some, but I am debt free plus I get a healthy 4 figure commission every quarter in my job.

This flat would do me 5 or 6 years..

scottishsuz

Is the flat offers over 107K or fixed?

Going with my own personal experience of the Scottish market (Fife and Dundee areas) if its offers over then I'd budget for the flat being worth at the minimum around £112'350 (5%) at worst £128'400 (20%). I found that some agents put really low offers overs prices to attract interest. My current flat was worth 15% over what it was on the market at.

Unless of course you've had a survey which states its value is £107k in which case the above won't apply at all!

Good luck!

marginalone

Its fixed!

scottishsuz

Thats good news that will hopefully make life easier for you. If it surveys at that you are on to a winner.

Personally the thought of a 35year mortgage sends shivers down my spine but then I'm miss ultra cautious. I hope it works out for you

marginalone

Id rather not do 35 years but the IFA said that in a few years I could change the mortgage.

A_Nice_Englishman

If I was in your shoes I'd try to save up 15% of the value of the property you want to buy before you start looking. That is 10% deposit and 5% for solicitor's fees, stamp duty etc and decorating, furnishing and doing any essential repairs when you move in.

A decent deposit will bring better terms on your mortgage as well as lower payments and be a cushion against negative equity should property prices fall. Saving will get you used to spending less so the bigger outgoings once you're an owner-occupier will be less of a shock.

On 26K you should be taking home £1617 pm I think. Perhaps there are deductions for a pension or health insurance? Anyway, with uncapped commission there should be scope to increase your income. If you saved £1000 a month you would be close to the 15% in a year's time - and property prices may even have fallen by then too.

marginalone

Well, Im set on wanting a flat now because I am tired of renting and wish to make an investment. £1533 is what I take home after tax due to Student Loans.

As Ive said, Im not in debt nor have credit card debt. What I was planning to do was use the credit card for the inital fees and pay it off when I get my next commission.

Having a few hundred after everything is paid is not the end of the world?