Variable or fixed as first time buyer?

Coffeekup

Bookowl said:

Just having a think, it’s such a minefield.
I’m on a low wage and so having to put £44k down. With a variable rate may go down or up.
If I wait until next year I worry that if interest rates go down next year the house prices will rise again and I won’t be able to afford to buy.

In my area the houses were placed on the market at £120k and going up to £140-£150k in April / may of this year with bidding wars and too many people.

In comparison last year my brother put £20k down on a house at £123,500k.

I don’t plan to be in rubbish wage forever.
 But it’s really daunting doing it all on your own.

Do I wait until next year with a higher paying job or take a gamble on this house?

Any help most appreciated.

I waited for year's for the prices to drop in my area.... They never did so I jumped on the band wagon and went for it, looking back it was a good move.

I always went for fixed as I was on a low income. However I always over paid the going rental rates in my area, then if I had a hard month I wouldn't over pay as much or at all.

If I was in your boat I would, probably go for the variable rate and over pay the amount what you would have been paying on the fix, or put that extra into savings.

housebuyer143

Bookowl said:

simon_or said:

Bookowl said:

simon_or said:

Is it a discounted variable or a tracker variable? If it's 3.15% I think it's a discounted.

I would go for the 3.15% discounted.

It’s on a tracker variable if that makes a difference?

It can't be a tracker, ask your broker again. If it was a 3.15% tracker it would be the bank of england rate plus 0.15%, a no brainer!

It is a tracker, my broker gave me an illustration of deals available and it was with NatWest as of 8th November with a 3.15% variable with repayments of £348 per month

As others have said, it's not going to be that rate, but 0.75% higher as base rate went up and it's not been reflected in the guide you were given, so you are looking at 3.9%.. If your broker didn't spot that I would probably consider getting a different one.