Mortgage Lengths

Lysimache

Are your incomes under £22k for this £200k home? So £40k in total?

Is there a reason you need to buy a home now or would you be able to spend a bit more saving up? (I realise it's hard to rent and save but buying with a larger deposit than 5% is typically how people in low wage high prices get onto the housing market.)

Higher deposit after a few years would also reduce the monthly interest you pay and give you a better rate, giving you more money in your pocket.

baggerstorbay

Yes, our wages are both lower than £22K each.

We don't have to have a new home, but even if we look in the second hand market, £120K-£150K doesn't buy much around here. Sadly, rents around here are expensive too, so renting whilst saving wouldn't work either. We're both living with parents at the moment to save as much as we can.

katebl

I'd suggest you just keep saving. Getting our deposit from 5% to 10% seems to have allowed us to borrow an extra 20k even though we've reduced our declared bonuses. What are house prices doing in your area, at what rate are they increasing?

Thrugelmir

baggerstorbay wrote: »

And even without the scheme, £150K only just buys a half decent flat (with high maintenance) or a 2 bedroom terraced house in a terrible area.

Many people start with what they can afford. Just to get a foot on the ladder. Bad areas in time often become good areas.

charlie792

Thrugelmir wrote: »

Many people start with what they can afford. Just to get a foot on the ladder. Bad areas in time often become good areas.

I'd have to agree with this.

We bought in the outskirts of the city centre 4 years ago, in what most would class as a 'bad' area.

Since that time a new build estate has been built locally and the city centre has undergone major redevelopment.

My next door neighbour sold recently with 3 offers at asking price within 1 week. Based on the sold price, our house has increased in value by approximately £40k. Not so bad for a 'bad' area.