First time buyer

scottmoreno

Hi all, just looking for some advice and assistance if I may.

Long and short, currently renting with my missus and kids, our tenancy is up October 2024, so plenty of time yet but we're looking to buy a house when the rental tenancy ends. We have a deposit currently of £28,000 and would hope to have at least £35-37k deposit by next October, potentially more if I manage to get overtime, my general concern is the current market and interest rates being sky high, the price range for the house we're looking for will be around £230,000 so give or take £195,000 mortgage over 25 years, i'll be 40 next year as well.

With all the doom and gloom in the news about the interest rates increasing, do you believe by next August etc that the interest rates will have dropped back down to in their 2s % or is 4% upwards going to be the norm ?

CSI_Yorkshire

scottmoreno said:

4% upwards going to be the norm ?

4% upwards always has been the norm, and not just a little bit upwards either.

scottmoreno

CSI_Yorkshire said:

scottmoreno said:

4% upwards going to be the norm ?

4% upwards always has been the norm, and not just a little bit upwards either.

Thanks mate, i'm a novice when it comes to these things, lead a sheltered life, IE not buying a house until I'm 40 lols

K_S

scottmoreno said:

Hi all, just looking for some advice and assistance if I may.

Long and short, currently renting with my missus and kids, our tenancy is up October 2024, so plenty of time yet but we're looking to buy a house when the rental tenancy ends. We have a deposit currently of £28,000 and would hope to have at least £35-37k deposit by next October, potentially more if I manage to get overtime, my general concern is the current market and interest rates being sky high, the price range for the house we're looking for will be around £230,000 so give or take £195,000 mortgage over 25 years, i'll be 40 next year as well.

With all the doom and gloom in the news about the interest rates increasing, do you believe by next August etc that the interest rates will have dropped back down to in their 2s % or is 4% upwards going to be the norm ?

@scottmoreno I've love to be able to predict but it's impossible to say, could be the same as now, higher or lower.

I know it's easier said than done but at 85% LTV and a potential term up to 30 years (with most lenders) and even 35-40 years (with some lenders and subject to the kind of work that you do), don't stress too much about your age as that shouldn't be a limiting factor.

And with interest rates unlike the US where 30yr fixes are the norm, in the UK most people fix for 2-5 years so even if you are on a low rate to start with (which is great!), current rates will eventually catch up with you so it's unlikely to be something you'll remember in 10-15 years time. As an FTB, as long as you can borrow what you need to buy the kind of house you want at a cost that is comfortably affordable to you, all is good.

scottmoreno

K_S said:

scottmoreno said:

Hi all, just looking for some advice and assistance if I may.

Long and short, currently renting with my missus and kids, our tenancy is up October 2024, so plenty of time yet but we're looking to buy a house when the rental tenancy ends. We have a deposit currently of £28,000 and would hope to have at least £35-37k deposit by next October, potentially more if I manage to get overtime, my general concern is the current market and interest rates being sky high, the price range for the house we're looking for will be around £230,000 so give or take £195,000 mortgage over 25 years, i'll be 40 next year as well.

With all the doom and gloom in the news about the interest rates increasing, do you believe by next August etc that the interest rates will have dropped back down to in their 2s % or is 4% upwards going to be the norm ?

@scottmoreno I've love to be able to predict but it's impossible to say, could be the same as now, higher or lower.

I know it's easier said than done but at 85% LTV and a potential term up to 30 years (with most lenders) and even 35-40 years (with some lenders and subject to the kind of work that you do), don't stress too much about your age as that shouldn't be a limiting factor.

And with interest rates unlike the US where 30yr fixes are the norm, in the UK most people fix for 2-5 years so even if you are on a low rate to start with (which is great!), current rates will eventually catch up with you so it's unlikely to be something you'll remember in 10-15 years time. As an FTB, as long as you can borrow what you need to buy the kind of house you want at a cost that is comfortably affordable to you, all is good.

Legend thank you for taking the time to reply and everything is clear with that, put my mind at rest