First time home ownership

BulletToothTony

Hi fellas,

I'm hoping to buy my first house/apartment within the next few months. I'm single, live in the North West, 30 years old with a secure job making £28-32k a year.

I'm just looking for a little guidance as this is the first time I've explored ownership seriously, but I'm at a stage where I don't want to !!!!!! money away renting any longer. I want the security of a home and asset of ownership/investing in myself. But in truth I'm fairly clueless and could do with a little help.

How is the housing market looking more broadly at the moment, would it be wrong to get the impression it's inflated relative to the state of the wider economy? Would the next few months be a wise time to buy or a risky one.. is there the potential for a correction over the horizon in the housing market which could really come back to bite you buying soon?

As far as a mortgage application goes, any tips or advice you could give me to get the best possible rate? I've heard all sorts of stuff about mortgage applications being rejected for the most spurious of stuff, even a friend of a friend having their application rejected because they spent money in Gregg's every morning before work apparently ha!

My job also has an attractive share save scheme and I'm thinking of contributing £300 a month to it, I have to decide for the year this week, but I'm concerned about how that would effect my eligibility and chances with a mortgage application. My annual wage would be unchanged but my take home pay would take a bit, is that something I should be worried about if I apply?

I should have a minimum deposit of £20k, could be as high as £50k potentially, but I'd have to liquidate some investments and I'm not wholly convinced that would be a wise move either. Thoughts? I have £8k debt currently also however, divided over two zero interest credit cards and a 3% fixed interest loan over the next 18 months. Monthly payments for these total £800 currently, could pay them off early if it'd help.

If you were me how would you play it? Am I doing the right thing given my personal circumstances currently? I'm aware it's tougher doing it single too, so a lot to mull over. Would be interested to hear all perspectives.

Sorry for all the questions, I just know we have some wise old heads on this forum and I'd be grateful to tap into that wealth of knowledge and experience.

Any help or advice would be greatly appreciated. Cheers.

BulletToothTony

Didn't mean to exclude any of the fairer users here with the "fellas" introduction! Just pasted a post I made in another forum here rather than rewrite something similar, any help would be greatly appreciated! Thanks 

RelievedSheff

The £800 per month debt repayments will have a big impact on your affordability assessment and will reduce the amount that you can borrow against a house. 

moneysavinghero

You're currently taking home approx £1900 a month minus your debt repayments of £800 only leaves you with £1100 (and if you go for the share scheme it drops to £800). I'd get those debts paid off as soon as possible if i was you - will look much better to the mortgage providers.

gwynlas

As above you should reduce your outgoings as a sign that you can afford mortgage payments utility bills etc. 
Do you know what type of house that you would be looking for? Are you aware of prices locally? I would suggest a house rather than a flat as you will not have to pay service charge and having a spare room means that you could take in a lodger and earn money under rent a room scheme.