First time Buyer

Kris442351

Hi, being a first time buyer Iv had an offer accepted on a new build home, and had a mortgage offer and affordability check and all ok, house price is 219995 with a 10k contribution from developer. Putting I. A deposit of 46995 with a mortgage of 853 a month on a 5 year fixed rate. The mortgage offer is for 37 years which would take me to 70 years old. Having some serious anxiety and stress of being able to comfortably live. My salary is 41000 annually. Is it normal to feel anxious and worry ? Thanks 

ACG

Look at your net pay.
Take away £853. 

Do you have enough left to pay for your bills, food, socialising etc? Forget what the lender says you can afford, are you comfortable with the amount you will have left over? 

I remember when I bought my first house, the thought of having that massive big debt was scary. 
Then I moved house and the debt doubled! 

But ultimately if I had wanted to rent either of the 2 homes I have owned, renting would have been twice as much each month - I actually could not afford to rent the house I live in now. 

If the scary bit is the thought of having a £400k debt hanging over you, that does subside (bad choice of words when talking about a house!). If the scary bit is that you wont have enough money to live each month, then you need to really go into the financials - your bills, insurance, food, tv, phone etc etc. 

BikingBud

Using £41k and with normal commitments the screen shot below indicates a monthly net wage of ~ £2660, that leaves you over £1.8k per month for other spending.

I would suggest that the only worry is ensuring that you optimise that excess to ensure that you do not continue paying a mortgage until you are 70. 

But I am sure that you realise this already and are just after a little sport!

RogerPensionGuy

Kris442351 said:

Hi, being a first time buyer Iv had an offer accepted on a new build home, and had a mortgage offer and affordability check and all ok, house price is 219995 with a 10k contribution from developer. Putting I. A deposit of 46995 with a mortgage of 853 a month on a 5 year fixed rate. The mortgage offer is for 37 years which would take me to 70 years old. Having some serious anxiety and stress of being able to comfortably live. My salary is 41000 annually. Is it normal to feel anxious and worry ? Thanks 

Hi.

Question, did you just offer 10K below sticker price and they accepted and are just making out they giving you 10K or what deal did you achieve?

Shame you did not offer 20K under sticker price.

What % deal they offering you for the first 5 years?

Kris442351

RogerPensionGuy said:

Kris442351 said:

Hi, being a first time buyer Iv had an offer accepted on a new build home, and had a mortgage offer and affordability check and all ok, house price is 219995 with a 10k contribution from developer. Putting I. A deposit of 46995 with a mortgage of 853 a month on a 5 year fixed rate. The mortgage offer is for 37 years which would take me to 70 years old. Having some serious anxiety and stress of being able to comfortably live. My salary is 41000 annually. Is it normal to feel anxious and worry ? Thanks 

Hi.

Question, did you just offer 10K below sticker price and they accepted and are just making out they giving you 10K or what deal did you achieve?

Shame you did not offer 20K under sticker price.

What % deal they offering you for the first 5 years?

No I didn’t offer anything below, when enquiring about the property they said the price was £219995, and was told there was a £10,000 incentive that could be used as a deposit or towards upgrades to the property.  The deal I’ve been offered is 5.44% for 5 years thanks 

MFWannabe

It’s perfectly normal to feel anxious about buying your first property 
I guess you’re not currently renting? As you would already be paying out and would have an idea of costs 
sit yourself down and write out your budget then you’ll have it all written down in black and white and know how much surplus you have 

RelievedSheff

It is entirely normal to feel these sort of feelings.

They very quickly disappear as time goes by and you settle into your new monthly budget and routine.

We have had the same feeling every time we have taken out a new mortgage and the budget has been reset.