1st time buyer, can't borrow enough money

Crashy_Time

scholesfan88 wrote: »

I wouldn't expect FTB'ers to be regular users of their overdraft.

Why not...?

kinger101

Not read all the replies, but I cannot see what your problem is.

You have access to £80K in cash. And a salary of at least £50K. You won't struggle to find a 4.5 X salary mortgage. Many high street lenders happily go to 5 X.

So you can afford a home of about £330K. There will be no SDLT. You'll have time to save another £2K for legals/surveys while you're looking.

You're lucky enough to be in a position to buy in what is now a relatively young age. So just buy.

oli356

kinger101 wrote: »

Not read all the replies, but I cannot see what your problem is.

You have access to £80K in cash. And a salary of at least £50K. You won't struggle to find a 4.5 X salary mortgage. Many high street lenders happily go to 5 X.

So you can afford a home of about £330K. There will be no SDLT. You'll have time to save another £2K for legals/surveys while you're looking.

You're lucky enough to be in a position to buy in what is now a relatively young age. So just buy.

Yeah, seems like I was underestimating how much I could borrow... Mortgage broker said I could most likely borrow 250k.

Going to save for a year/two more anyway and then make the move.


£330k even as a FTB would still need stamp duty wouldn't it though? Thought it needed paying on the £30k.

kinger101

oli356 wrote: »

Yeah, seems like I was underestimating how much I could borrow... Mortgage broker said I could most likely borrow 250k.

Going to save for a year/two more anyway and then make the move.


£330k even as a FTB would still need stamp duty wouldn't it though? Thought it needed paying on the £30k.

My bad - yes the exemption ends at £300K, so you'd have to pay 5% on the £30K. But I wouldn't let that influence you too heavily, as it's better to spend a bit more on a house that you're happier with and will last you longer. Your next stamp duty bill will make you wanna cry.

eamon

Assuming the OP is serious then I echo what some of the other posters have said stay at home for a few more years and save up even more money. Expand your search area for properties and ask you friends/work colleagues about were they live etc. But be wary of commuting times a notional 45min journey can easily turn into 3 hours of hell at no notice. If really nerdy you could pretend that have already moved and set up your monthly savings to mimic

Mortgage
Council Tax
Water
Gas/Leccy
Broadband
TV package
Building & Contents insurance
Emergency fund for when things break/wear out.

oli356

kinger101 wrote: »

My bad - yes the exemption ends at £300K, so you'd have to pay 5% on the £30K. But I wouldn't let that influence you too heavily, as it's better to spend a bit more on a house that you're happier with and will last you longer. Your next stamp duty bill will make you wanna cry.

Yeah that's what I thought, no deal breaker for sure. And I'm sure I will want to cry the time after! Wasn't sure how much the other fees would be, so I've totally guestimated £7k in total for all the fees and payments max... might be way off, but hopefully no more than that.

oli356

eamon wrote: »

Assuming the OP is serious then I echo what some of the other posters have said stay at home for a few more years and save up even more money. Expand your search area for properties and ask you friends/work colleagues about were they live etc. But be wary of commuting times a notional 45min journey can easily turn into 3 hours of hell at no notice. If really nerdy you could pretend that have already moved and set up your monthly savings to mimic

Mortgage
Council Tax
Water
Gas/Leccy
Broadband
TV package
Building & Contents insurance
Emergency fund for when things break/wear out.

That's the plan for now, 1/2 years more, past that it will just keep drifting on and on and I'll be here when I'm 40 ...

The journey time is a valid point and something I do want to be careful of.


TV/Broadband I understand the costs, mortgage payment roughly £800 based on the 1 figure I got from the mortgage broker... the rest of the things, council tax, water etc... not a clue, I couldn't even guess how much they are.. Research to be done there.

Sncjw

Do you really want to buy a home right at the top of the potential lending amount. Calculators will help guide you roughly how much lenders could loan you . It isn’t garunteed due to circumstances. If you go right to the top of it there’s no wiggle room: also the more you borrow the higher the mortgage will be.

I’m concerned that you will be jumping from living with parents with low expenses to buying first homes which hidden costs. Have you thought about renting for a bit to see what your living costs are so you know how Much you will be spending a month on the house. It will also give you a foundation for paying bills on time and working out what you need to set up.it will also show if you can manage living on your own.

oli356

Sncjw wrote: »

Do you really want to buy a home right at the top of the potential lending amount. Calculators will help guide you roughly how much lenders could loan you . It isn’t garunteed due to circumstances. If you go right to the top of it there’s no wiggle room: also the more you borrow the higher the mortgage will be.

I’m concerned that you will be jumping from living with parents with low expenses to buying first homes which hidden costs. Have you thought about renting for a bit to see what your living costs are so you know how Much you will be spending a month on the house. It will also give you a foundation for paying bills on time and working out what you need to set up.it will also show if you can manage living on your own.

Between what I plan to hope in cash by the time I'm 'ready' I shouldn't need to use the max amount I can borrow. If it would make more sense to borrow more instead of using the cash available, I don't know right now.

I've not really thought of renting for a bit and don't really plan to. Having to pay £750 (basically the minimum to get a 1 bed flat around here [no intention of moving further out for an exercise. I assume the minimum duration would be 6 months. Plus all the 'stuff' I would potentially need to buy for a flat that wouldn't be used when I come to buy a house. I understand the logic of the idea, but I just think its a waste of money, would rather be saving the money and doing research on the costs involved.

letitbe90

FtbDreaming wrote: »

If youre only paying £300 keep and youre on £50k salary why not stay at home another 3 or 4 year, live very frugally aiming to save £30k plus a year and in that time you'll have enough to move straight into the area you want then with a smaller mortgage topup.

The differential between money saving potential vs house price increase is always squeezed in certain areas.