First time buyers

Demi2023

We’re first time buyers and we want to buy as soon as possible. We’re in our mid-thirties, we’ve been renting for years and we’re sick of feeling like we’re throwing our money away. 

We have a deposit of £80,000 and we’re looking at houses worth around £300,000. With the current mortgage rates, we’d be looking at mortgage repayments of around £1200/ month, which is too high. We need the repayments to be less than £1000 (ideally £800). We’ve worked out that we need the mortgage rate to come down to 3.8% for this to be achievable. 

What are our best options? Any advice from an expert is very welcome!

• do you think if we wait a few more months, mortgage rates/ house prices will come down to what we need them to be? 
• Should we be looking at shared ownership instead? 
• Would it be better to buy to let for a couple of years and continue renting for now?

mi-key

Have you double checked your figures? I assume you are looking at a 25 year term ? To come down to £1000 a month for £220,000 borrowing you would need them to be around 2.75% and down to 0.75% for £800 a month

2.75% isn't likely to happen for at least a few years. 

House prices are anyones guess, but unlikely to drop enough to fit in with your figures at all.

Maybe better to look for a cheaper house for a few years, then think about moving again in the future? 

SDLT_Geek

Demi2023 said:

We’re first time buyers and we want to buy as soon as possible. We’re in our mid-thirties, we’ve been renting for years and we’re sick of feeling like we’re throwing our money away. 

We have a deposit of £80,000 and we’re looking at houses worth around £300,000. With the current mortgage rates, we’d be looking at mortgage repayments of around £1200/ month, which is too high. We need the repayments to be less than £1000 (ideally £800). We’ve worked out that we need the mortgage rate to come down to 3.8% for this to be achievable. 

What are our best options? Any advice from an expert is very welcome!

• do you think if we wait a few more months, mortgage rates/ house prices will come down to what we need them to be? 
• Should we be looking at shared ownership instead? 
• Would it be better to buy to let for a couple of years and continue renting for now?

Assuming you are buying in England, you would lose first time buyers relief for stamp duty land tax if you buy a property to let out before you buy a home to live in.

MikeJXE

Have you looked at this ?

First Homes scheme: discounts for first-time buyers

SDLT_Geek

MikeJXE said:

Have you looked at this ?

First Homes scheme: discounts for first-time buyers

Are you aware of any developments where this scheme has been put in place?  

My understanding is that it will apply to a development when a particular form of planning agreement is entered into between the local planning authority and the developer.

[Deleted User]

SDLT_Geek said:

MikeJXE said:

Have you looked at this ?

First Homes scheme: discounts for first-time buyers

Are you aware of any developments where this scheme has been put in place?  

My understanding is that it will apply to a development when a particular form of planning agreement is entered into between the local planning authority and the developer.

I couldn't find any doing it. They are all running their own scams, part buy part rent.

Have you considered emigrating?

YoungBlueEyes

House. Price. Location. Pick any two. 

MFWannabe

Demi2023 said:

We’re first time buyers and we want to buy as soon as possible. We’re in our mid-thirties, we’ve been renting for years and we’re sick of feeling like we’re throwing our money away. 

We have a deposit of £80,000 and we’re looking at houses worth around £300,000. With the current mortgage rates, we’d be looking at mortgage repayments of around £1200/ month, which is too high. We need the repayments to be less than £1000 (ideally £800). We’ve worked out that we need the mortgage rate to come down to 3.8% for this to be achievable. 

What are our best options? Any advice from an expert is very welcome!

• do you think if we wait a few more months, mortgage rates/ house prices will come down to what we need them to be? 
• Should we be looking at shared ownership instead? 
• Would it be better to buy to let for a couple of years and continue renting for now?

Lower expectations and therefore budget? Why are you looking at houses 300k when they’re too expensive?