FTB mortgage application worries?

kunekune

My point about take home was that OP has to ignore what can't be relied on. In an economic downturn, commissions go. I suspected interest only and it fills me with dread. He plans to sell again in 2-3 years. What are the chances of being in negative equity.

If it's short term, why are you buying anyway? Even interest only is probably going to be more than rent. You won't be able to save anything, and there is unlikely to be any capital growth.

I'm not one of the doom and gloom merchants, I'm hoping to buy myself in the next year or so, and like you with a 10% deposit. But the difference is that our repayments will take up 20% of our salary, leaving at least another 10% for overpayments and 10% for other savings. I don't claim to be wise, if I was we'd own a house outright. But please learn from others' disasters. OH and myself have lost everything we put into a house. Twice. And have bad timing for employment relocations. That's one reason why in our mid 40s we're in rental. You can avoid that.

DannyS_2

SquatNow wrote: »

OK, lets make this clear.

Ignore the DJ job... could easily go to someone else.

Your looking at a 5 times mortgage, taking up AT LEAST 40% of your pay.

Your nuts. Walk away, keep saving, wait out the crash.

4 times my salary, and 33% of my pay. I'm comfortable with that after ALL my bills, council tax etc etc I still have £700 left, WITHOUT my secondary job which I am well connected in and would be able to get more work even if I lost my job at my current venue. I really can't see how I am crazy with this.

Lotus-eater

Buying for only 2-3 years? How can that be worth it, after the hassle of buying and selling, the chance of negative equity, the costs of buying and selling.......... to me that is crazy.

DannyS_2

Lotus-eater wrote: »

Buying for only 2-3 years? How can that be worth it, after the hassle of buying and selling, the chance of negative equity, the costs of buying and selling.......... to me that is crazy.

I mean the plan after that is to move into a bigger property with my partner.

Lotus-eater

But you've still got to do all the things I said, it used to be said you should aim to be staying in the house you buy for over five years for it to be worth it, with the massive house price increases this was generally forgotten as it didn't matter anymore..... well it might matter now. Have you actually worked out how much it will cost you to buy and sell this one flat instead of just renting and buying the next one?

DannyS_2

call from RBoS today wanting to know why I am paying £400 a month to sainsburys bank! Told them it was savings so now they want savings statements to back this up faxed over, and have said it will take 8-10 working days to process my fax! So looks all good, just takes so bloody long to do anything! Are we still in the 1990s?

macaque_2

Dannys

For goodness sakes. What have we come to? A 22 year old stressing about his credit rating!

Why are you subjecting yourself to the tyranny of a lender re-discovering due diligence. You are 22 years old and clearly motivated. If you buy a house now, it is hardly likely to be worth any more in 15 years time no matter what you pay.

Go abroad for 10 years. If you must buy a house, find one that allows you to smell the sea and have barbeques in December.