First Time Buyer. So confused

confusedftb

Hi All,

So much valuable information on this forum. Really really helpful. I hope my confusion and problem is also solved.

I have saved up around £50k in savings and looking for properties now. Its not a joint mortgage, just me alone.

Earnings: I have two part time jobs. one of which is stable and i can work up to 40 hours. the other is seasonal but pays really well.

What to buy?
Seriously confused if i should go for a 3 bed flat or a 3 bed house.

I don't even know if i will get a mortgage on part-time jobs. I have tried to acquire some information and help from other places but no help unfortunately, so really hopeful to make a good decision.

3 bed house costing around £300-325k
3 bed flat asking £250


thank you everyone in advance.

EmsLdn

Have you looked into a mortgage broker or an independent financial adviser? They can certainly help with the mortgage question and then it can inform you on how much you can afford to borrow (mortgage). I can't help with the house v flat decision, but I think there tend to be ongoing costs associated with owning a flat - such a ground rent for leasehold properties.
Good luck with the property search!

lincroft1710

Talk to a whole of the market mortgage broker. See how much you can comfortably borrow and then decide which property will be most suitable for you

foxy-stoat

Have you plugged your salary figures into a mortgage calculator to see how much you can get?

AlexMac

As above; first sort out whether/how much you can borrow...

But when you know what you can afford, conssider the pros and cons of

- house (which is usually but not always) "freehold"
vesus
- Flat, which is usually "leasehold"

and be sure you understand the difference.

With a freehold, you'll have more control on stuff like maintenance, making alterations etc, you can choose (for example) whether to replace windows, build and extension or fit a satellite dish (subject to the usual Council controls of course), keep pets or have wood or laminate floors. Whereas all those things potentially require Leaseholder permission in a flat (and new windows in Flats often require Planning Permission and many Leases prohibit bare floors and demand carpets to keep noise down).

Even Leasehold properties differ; crucially in terms of the extent of control you have over things like Service Charges (for insurance, repairs, and, especially if a Management Company is involved, admin fees).

I pay only £450 a year Service Charge; £35 per month, for one flat I own and that includes a healthy contribution to a "sinking fund" for future major stuff like roof repairs or external repainting every 6-7 years. That's mainly because it's a so-called "shared freehold" where the leaseholders collectively own the Freehold of the block; and we manage it all ourselves so no fees. But friends have just bailed out of a flat with an eye watering £5,000+ per annum Service Charge for communal gardens, roads, concierge, etc... And some money-grubbing Freeholders or their Agents even charge hundreds of quid to answer your solicitor's standard pre-sale questions or other enquiries.

So don't write off a leasehold flat but ensure you know where the control lies and what the costs are. You can tell which I prefer!

But you are wasting your time reading this until you sort the cash!

confusedftb

thank you so much for the replies and directing me towards an adviser.

another thing which i wanted to explain was that i applied for AiP and got it at £240k but that was including my second part-time job which i no long do much. the AiP is 2-3 months old.

I am inclined towards buying a house but the finances seem to be a bit scary. i am a good saver and i can save well but the whole prospect of buying a house is seeming a bit daunting.
any suggestions of financial advisers?

is it possible to get a mortgage with a part-time job?

credit history is excellent, no debt, ccj or any other problems. really tired of paying rent (paying for someone elses mortgage)

AnotherJoe

Why 3 bed? Getting lodgers? Family?

I think that a 2 bed flat would be the "sweet spot" for flats rather than a 3 bed, not too many people looking for a 3 bed flat, those that are looking are tending towards families and so would want a house. Always exceptions of course.

confusedftb

AnotherJoe wrote: »

Why 3 bed? Getting lodgers? Family?

if i get a house then maybe i will get a lodger in but in a flat i don't think it will be a good idea. but this is another way i could get help with the mortgage.

i am mainly wanting to know if its possible to get mortgage with a part-time job with a fairly decent wage.

hazyjo

If you earn enough, of course part timers can get mortgages. It's presumably still a permanent job?


If they can guarantee the overtime, you can use it. Surely though if you're doing 40 hours pw on a part time job, that's just basically a full time job? If they can't guarantee the overtime, you may have difficulty proving it in the future. I've always had two bonuses a year, but my company won't actually commit to it in writing so I haven't been able to use that when applying for mortgages.


Would also be following AnotherJoe's advice and buying a 2 bed house.


Are you sure you want lodgers?! Not for everyone! Personally, it's my idea of HELL!

LydiaTheKind

I'm in a similar situation to you - isn't buying for the first time daunting?!

I'd advise going to speak to a mortgage advisor. I did this recently and found it very useful - I'm an NHS worker and have some very confusing payslips. From what I understand, if your wage fluctuates from month to month then they will ask for 3 months worth of wages, and will take into account any earnings from a second job as long as you receive a payslip from them every month. She made everything very clear about costings etc.

In terms of house vs flat - personally, I'd prefer a house. Less neighbours to worry about, more space etc. Saying that, I'd rather have a flat which I can afford without having to rely on lodgers, rather than a house where I'd rely on lodgers and stress about filling the spare room.

ReadingTim

Speak to this lot and get a realistic idea of what someone will actually lend you before wasting any more time on idle speculation and crystal ball gazing.

Without a realistic idea of budget, you're basically playing the property equivalent of fantasy football....