Thinking about being a FTB

BWZN93

Ok, personal circumstances mean I will be relocating back to my home town some time in the early new year, the purpose is to take advantage of 'affordable' property as I simply cant buy here in Bristol. My home town is Stoke on Trent. I also need more space, and to be closer to freinds and family, but thats another thread .

There are two scenarios that id like feedback on!

1) Ive applied for a promotion which would take my income to approx £22k, and would be eligible for relocation assistance which is rather generous, it would mean legal fees, searches, surveys, removals, temporary accommodation, time off and some extra cash for 'disturbance' are all sorted for me. If I get the promotion then I have to start this process within 8 weeks of being offered the job, and must complete within 12 months. I want to buy anyway and would love to take advantage of this if offered the job.

2) I dont get the promotion and relocate anyway, meaning income stays at approx £18500, and I have to pay for everything myself.

I have no deposit at present, and will have a £2000 overdraft in terms of debt. The rest will be cleared. I dont have any adverse credit and will close my credit card/store card accounts as soon as the balance hits zero if this will help (before the end of december).

The property prices im looking at are approx £70k. Obviously, scenario 1 is better but is it possible to do it in scenario 2 anyway? Id like to know what my options are if I dont get the job as I really want to relocate and buy my own place. Are there any good 100% mortgages out there? Or am I just deluding myself and should I be thinking about renting (again) instead?

Jo x

BWZN93

I feel its also worth mentioning that I already pay £525 rent a month and the mortgage quotes ive looked at will actually reduce my outgoings on a month to month basis, and as my flat is unfurnished, I already have a large amount of furniture etc in order to furnish a house. I wouldnt need to borrow more than 100% as it would be unnecessary!

Jo x

17Dave

Hi Jo
From the info you have posted I think you should be able to get the required mortgage of around £70,000 even on your current salary and allowing for the overdraft. (unless its a free overdraft have you thought of getting a 0% credit card to reduce charges and pay it off sooner?)

With no deposit the rate you will pay is higher than if you had a 5% deposit - approx rates 7% at 100% mortgage and 6.4% at 95%.
I often use Northern Rock / Coventry but get a broker to check the best deal for you. Good luck with the promotion and house hunting.

herbiesjp

Hi Jo - this does look straightforward on eitehr scenario

I think your next step would be to get in contact with a whole of market adviser to see what rates are available, and then what that would mean in terms of monthly mortgage payments to you.

That way it brings a bit of realism to the scneario for you, and will highligh the fees associated to the mortgage as well

BWZN93

sorry - shameless bump!

Im SO happy MSE is back! YAY!

herbiesjp

Just to give you a rough idea as to repayment mortgage figures on an interest rate of around 6.5% (for a £70k mortgage over 25 years) you could be looking at around £480 pm

So less than your current rent.

And that is with an average deal - you would need to speak to a whole of market adviser to see what combination of interest rate and fees you would you want to opt for