First Time Buyer Advice Needed

nufc_fan

Hi

Quick explanation of my situation - looking to buy first property with girlfriend, we have a combined salary of 40K with good prospects of salary rising in the next consistently in the next few years.

Been lookign at propertys for around 135-140k.

Do we try to get a 100% deal, if so how long for. We have had a few quotes for 5 year fixes (is this length of time a bad move)?

Other option is to use some savings (which we had planned to keep as a backup fund, for a rainy day etc) and put down a 5% deposit of around 7K.

Would we get a much better deal i.e rate at with the deposit or is the money better in a isa account there if we need.

Any advice, or pointing in the right direction with regards to 100% or 95% rates would be great

Cheers

herbiesjp

I woudl always suggest having money put away as a rainy be it it you were lookking to invest or buy a porperty.

The 5% deposit will reduce the interest rates, however, you would not then want to find yourself in financial difficulty because of the fact you have used up your deposit - not everyone is in this position, so the decision has to lie with you, as you know how much you can save each month, and then potentially buils up that surplus/emergency fund again.

DO you have any other debts in the background?

Do you have a clean credit history?

nufc_fan

thanks

we dont have any credit history etc, just a tricky decision to decide where the money is best spent.

I will go see a broker i think and get some actual numbers to compare the different options

cheers

Lavendyr

Make sure the broker you see is a whole of market broker!

maryotuam

There is talk of house prices falling,especially in the Spring when a load of new houses will come on to the market. If you held off buying till then you might find it easier to put in lower offers and you could end up with lower repayments.