FTB Help

CHARDONNAY_3

My partner and I want to buy our 1st home. We are both employed, in current jobs since sept 07, and earn approx 12000 pa each. We have a deposit of 5000 and the houses we are interested in cost approx 100000. Any advice?

jaype

Good luck. I'd imagine that with the credit crunch, you'd be hard pressed to find someone willing to lend you that type of multiple of your salary - at least, at a decent rate. Why not wait and rent for another six months (or move in with family) to get a better deposit - perhaps even take on a second job each for the short term. If you can even double what you have you'll get some much better deals. Personally, I'd wait and see what the market does, however - these are uncertain times and prices are certainly not rising anymore.

nelly_2

CHARDONNAY wrote: »

and earn approx 12000 pa each. We have a deposit of 5000 and the houses we are interested in cost approx 100000. Any advice?

Yeah! move to Basra or build a proper deposite and wait 6 months

The councill of mortgage lenders have reported 4 months on the run of house price drops and that aint gonna stop

Running_Horse

CHARDONNAY wrote: »

Any advice?

Increase your income and keep saving.

trulysaintly

Speak to an independent Mortgage Broker first - you do not have to give any commitment, but you will find out where you stand quicker.

Then, being more informed of your current budget, you can make alterations to get you where you want to be.

This could be by saving whilst living with parents, or finding out whether they can assist you with a larger deposit or by acting as guarantors.

By renting for six months, you'll be throwing money away that you could be saving. I know its hard to remain at home, but make the most of it, and help yourself.

I wish you the best of luck - and take all the doom mongerers like a pinch of salt. As a FTB you are in a strong position, as you are every seller's dream.

Remember that when you come to negotiate a purchase price!!!!!!

CHARDONNAY_3

Thanks for all your comments - altho nelly's was a little odd!

After much thought we have decided it makes sense to wait.

It has taken us almost a year to save £5000, but we should be able to double that in 9 months if we continue to save at our current rate. We have also both managed to get part time jobs at our local pub over xmas! Used to work there while I was a student and it wasn't half as bad as it first seems!

We currently rent from a housing association paying £60 a week for a 1 bed flat. Would love a house with a garden but have looked into monthly payments on a mortgage and they are in excess of £600 - twice what we are paying now!

Thanks again for helping me to see sense - will keep u updated on my progress!

carolt

Great, hope it works out for you.

£60 a week for a flat! Wow - wish my rent was that low.... Sounds like you've got a pretty good deal going...

Running_Horse

Well done on the part time job. I believe you will find the market a lot more favourable in a year or two, but could be wrong of course.

Zammo

Wait a few years, let the "correction" take place, and buy a house for 50% less.

jaype

Yes - stay in that flat for another year or more if you can manage it. You may WANT more space, but you don't have a child on the way or anything, so you don't really need it, nice as it would be. If you bear with it now, with a larger deposit you'll get a better mortgage rate and pay much less in the long run. Spend the next year savign furiously while the money and housing markets make their minds up and you will be better off! Good luck

Generali

Save money, improve your skills to improve your income and try to be patient is my advice. Why worry about the hassle of buying a place when you've got something that costs so little?