First time buyer, just need advice quick question

ste2121

Thanks for teh advice. I think payin of me loan first is the right thing to do. I just cant stand living at home lol. Yes i can get as much overtime as i like so ill pay my loan of in 2 YEARS or so! nothin i can do about it guess but least ill have some money to spend on top of that.

If i done 1 15hour shift once a week on top of my normal hourse i should come out with £1100 to spend, my loan is £275p/m or so over 5 years. So i probly could afford to move out with a m8 but not if it mean gettin into more intrest payments.

Would i be right in sayin that i should just forget buyin a flat for a year or two?

ste2121

Newcastle football club = Northern wreck

mandalay_2

Honestly, if it were me, I'd wait and just put up with being where you are (you will know when you do get your first home that it was the best thing you could have ever done financially)

Don't agree about not buying cos you're 20 bit, as it all depends on the person's situation etc.

Best thing you can do is become as miserly as possible (without losing your life) get the loan paid off and work your nuts off to save a deposit.

Like I said before, it will be all that more sweeter when you do open the front door to your first ever home (no debts, money saved ready to do it up, a bit of equity etc)

I wish you lots of luck with it xx

Broke_Student

I'd advise along the same lines as PasturesNew - stay at home for a while until you have a long term partner you can move in with. Moving into a place with someone else will halve the costs!

Sam911

As others have suggested i would concentrate more on clearing that 13k loan before making one of the biggest financial commitments of your life. At the age of 20, with no savings to put down as a deposit, a loan of 13k, a salary of 14k and with lenders becoming even more cautious, i dont see you being able to secure a mortgage on anything over 40-50k

It would be a good idea (and remember this is just my opinion) to spend the next 2-3 years of your life trying to clear that debt, research a little, try and save some money, look for ways to boost your income, and enjoy yourself.

I cant say that house prices will crash 5%, 10%, 20% or even much at all, but i know that if they dont at least stop rising then you will be able to count first time buyers on one hand.

If you really need to look to move out, maybe you can find a cheap room to rent. I live in a tiny bedroom of a 3bedroomed ex council house atm, renting off a friend, one day it will be worth it !!!, i hope.

Goodluck

ste2121

thanks. x

VFR-Rider

Just to echo what everyone else has said... It doesn't look like you'd currently be able to afford your own place.
I would seriously consider a house share as (I assume) you've never lived away from home, it's a seriously cheap way of finding out what life on your own is like.
As people have also mentioned, with no deposit and a low wage, your mortgage options will be very, very seriously limited.
As to the prices crashing... If anyone knew when and how much (if any, because there are the odd 1 or 2 that still disagree!), then that person would be laughing all the way to the bank.

mcdelarich

Just wanting to give my input - I am 21, me and my girlfriend have been living together (renting) for 3 years now, and we are just waiting to exchange on our first house buy.

We had to save up a 20% deposit (£20,000) just to be able to afford the monthly repayments (£490 a month) if you add onto this all our other monthly outgoings, it comes to around £1600 a month (our council tax is £200 per month too). Bearing in mind we have a little boy - but he doesnt add much to the outgoings per month (only adds to our spare money outgoings!)

I would really recommend renting first - even if it is only for 6 months or so - just so you get into the flow of paying bills/rent each month and make sure you can actually afford to pay a mortgage. A mortgage is a big commitment, you need to be 100% certain you can afford it - otherwise you'd be in big trouble.

I would definately get your loan paid off first, and also get any other debt/payments up to date (ie credit cards/bills) and get your credit file before you look for a mortgage to check through it. The other thing is to go through an independant mortgage broker - they will find you the best possible deal for what you can afford.

HTH

Rich