When to Buy (advice please!!)

[Deleted User]

Hello!!

A bit of a background about me: I’m currently serving in the armed forces with about 2 years left (although I can stay in until 2025 if I wanted). I’m aiming to leave in Nov 2021 and should get a civilian job earning approx £35,000 p.a. I would be spending around 1 year living with my parents before buying. My girlfriend and I are planning on getting a mortgage together however she won’t be able to contribute much towards the deposit but I need her on a mortgage application to maximise the amount we can borrow, she currently earns around £18,500 p.a. I currently have around £25,000 saved towards a mortgage deposit and I should have around £47,000 towards a mortgage deposit by the time I leave (and around £22,000 to furnish). We are hoping to buy a property worth between £220k - £240k.

My question is would I be better off carrying on with my plan and targeting a 20% mortgage deposit and buying in 3 years, or would I be better off buying now? I wouldn’t be able to live in there for 2 years as I’m currently posted abroad so I am in no rush to buy, however someone I’ve just spoken to has told me that I should buy as soon as I have a big enough deposit so I don’t miss out on capital gains. I’m put off the idea of buying now as I will be paying interest on mortgage repayments where I wouldn’t have to pay interest on my savings for a deposit at the moment. Also with Brexit there could be a chance of house prices falling, along with any other help schemes that could become available for first time buyers in the next 3 years.

Sorry for waffling but wanted to give as much info as possible!!

Cheers
Chris

Slithery

What would you do with the property for the next couple of years if you did buy now?

sammyjammy

I say stick with your plan and don't listen to "someone"

Cakeguts

Buy when you know which bit of the UK you are going to be living in.

[Deleted User]

Thanks guys. Knew my instinct was right. It would just be sat there empty for 2 years if I bought it now. Really appreciate the help!!

davidmcn

In any event, mortgages are either for the property you're actually living in, or properties you're renting out. I doubt any lenders will give first time buyers mortgages for properties which they're just giving to leave empty for years.

getmore4less

The way it worked for my parents was they arranged their last UK posting(s) to be in the area they wanted to live so they could transition from married quarters to owner occupied.

You must be beginning to form some idea where you will be based once out as you have an idea of job/salary and planning to set up with the GF.

Why would the property be empty if there are 2 of you buying?

Get the OH in and she can have lodgers to support the place while you are away.

jbondo

You may also struggle to get a mortgage because one of the terms of most mortgages is you'll require buildings insurance, which I believe one of the questions asked would be "will the property be empty for more than 30 days", you'll have to answer yes and you may not get any insurance at all

trex227

You’re planning to spend £22,000 on furnishings?

davidmcn

jkility wrote: »

You may also struggle to get a mortgage because one of the terms of most mortgages is you'll require buildings insurance, which I believe one of the questions asked would be "will the property be empty for more than 30 days", you'll have to answer yes and you may not get any insurance at all

Irrespective of insurance, it's a normal mortgage condition that you're using the property as your principal residence. Which clearly you're not if you have no plans to move in for two years.

Also likely to be penal rates of council tax for leaving it unoccupied. And if you want any sort of valid buildings insurance, it's going to be much more restrictive and expensive than normal policies.

[Deleted User]

Ah I see, I wasn’t aware of this, it’s all new to me so thank you for making me aware. If my mind wasn’t made up before then it certainly is now.

Also the £22,000 is just what I’m putting aside for furnishings or any decorating that I might need to do, hopefully won’t spend that much and can keep what I don’t spend. Also I only own a TV at the minute, everything else is provided for me so I need a lot lol