First time buyer woes

J1one

As a first time buyer (single) I wondered was there anyone else out there sharing my worries and woes at this time?
I have a £15k deposit saved but not a great salary so my lend is only coming out around £120k.
I am in a situation where I simply must move out, but my buying power is just too small to stay in the area I need (child) and any time I do find myself a property I like, I’m up against cash buyers 😭
If anyone has any helpful suggestions I’d take them but otherwise I’m mainly looking for others in the same boat to commiserate with! 

MikeJXE

I'm no expert but I have bought many properties in my life time

IMO you need a mortgage in principle first before you start looking 

You are not up against cash buys as cash buyers can even be someone who has something to sell but doesn't need a mortgage, you are in a better position than that because you have no chain and nothing to sell which is always preferred 

Talk to a mortgage broker and take it from there 

diystarter7

J1one said:

As a first time buyer (single) I wondered was there anyone else out there sharing my worries and woes at this time?
I have a £15k deposit saved but not a great salary so my lend is only coming out around £120k.
I am in a situation where I simply must move out, but my buying power is just too small to stay in the area I need (child) and any time I do find myself a property I like, I’m up against cash buyers 😭
If anyone has any helpful suggestions I’d take them but otherwise I’m mainly looking for others in the same boat to commiserate with! 

Hi
The only thing I would say is please do not make a desperate move and try to live off the skin of your teeth. As you know, property costs money to run - Eg, bolier breaks down, 400 easy at times, then tvr on rad goes, 120 easy, toilet float valve leaks, 140 easy, roof leaks, 300/500 easy, eltrics start tripping, 300 if you are lucky, then you may go sick and not get the reg pay and or overtime, coucil taxes go up, transport fares shoot up, unexpected bills, washing machine and fridge goes then the telly

You need at least several k's i your pocket when you have compelted otherwise the hand to mouth living if you can call it that will end up with more borrowing, more debts and before you know it you go bankrupt.

I'm not trying to scare you but its a rality - so save up more or consider alternatives.

Good luck

EssexHebridean

J1one said:

As a first time buyer (single) I wondered was there anyone else out there sharing my worries and woes at this time?
I have a £15k deposit saved but not a great salary so my lend is only coming out around £120k.
I am in a situation where I simply must move out, but my buying power is just too small to stay in the area I need (child) and any time I do find myself a property I like, I’m up against cash buyers 😭
If anyone has any helpful suggestions I’d take them but otherwise I’m mainly looking for others in the same boat to commiserate with! 

Are there compromises you can make - the first thing I’d suggest is you really question why you feel you need to stay in a set area, you mention a child but not what the reason is that this is preventing you from moving perhaps slightly further afield, if that would give you a wider choice of properties in your price range? It may be that your child is 13/14/15 in which case I completely understand your reluctance to put them through a change of school at this point. Younger children will generally adapt surprisingly fast to a new school though - and looking to buy at this stage in the year might mean they could wit habit of juggling stay where they are until the end of the school year and start somewhere new in September? It maybe an entirely difficult situation, but those are two obvious scenarios off the top of my head. 

Remember to factor in all the costs involved - and allow a 10% contingency plan on top of everything. Also run through your budget in detail - and make sure you have thought of everything that you have to, need to or want to spend on. Some costs might change or drop once you’re a homeowner but you’ll need to account for life assurance (a diminishing term policy at the very least which will pay off the mortgage and leave your child with an asset), buildings insurance etc as well as of course the mortgage payments. You’ll also need an emergency fund - a minimum of £1000 gives you a safety net if things go wrong, but budget to add whatever you can to that each month. Basically you can’t have too much saved “just in case”! 

You’re in a good position for being a desirable purchaser for a property in your price bracket - you’re chain free for a start, you already have a deposit in place, have you checked on a mortgage decision in principle for the amount you would need to borrow? 

Ksw3

It took us almost a year of being outbid to find a house, we were treated much differently once we could show we had a solicitor in place and that we were ready to go ASAP and serious about moving quickly. 

J1one

Thanks for all your comments, means a lot. 

I haven’t got a mortgage in principle yet, I guess I’ve been disheartened to with how low my lend seems to be and I’ve been hoping as I save more that will help. I understand they have a shelf life? So I didn’t want to do it before I was really ready. I am also almost 90% to have a promotion in the summer so I hoped that would help. 

In relation to schools, I’m going through a separation, I feel so guilty leaving a big house with lots of money that I feel I cannot put my daughter through a school move as well. So I am trying to stay in a commutable area for school. Sadly this is an expensive area with two beds £190-£200k at present. 

Thanks for the comments about contingency fund, I hadn’t thought about it but I have a chase account which I can start filling quietly