First time buyers with debt, what are our chances?

LavenderLily_2

Hello!

We are a married couple aged 28 and 31 and we have a young child. DH earns £25,000 a year and I only work part time so only earn £4,000 a year. We have an £8,000 loan that will be paid off in 5 years and approx £1,200 on overdrafts. We have no savings.

We would love to buy our own home but quite frankly we're pretty sure we'd get laughed out of anywhere we tried to get a mortgage from. I just don't know where to start and would really appreciate it if someone here could tell me if it's even worth us trying right now? Should we wait until we are debt free? We would need a 2 bedroomed house at least and I know they aren't cheap!

Many thanks in advance and please be gentle with me as I'm a total newbie when it comes to mortgages.

beecher

Hi there, you need to save up a deposit of 5-10% of the cost of the price, as there are no 100% mortgages left. So from that point of you, it definitely isn't worth looking around at the moment - try to save as much as you can and maybe install property bee and keep an eye on the local market. Prices are likely to go down in the future so now's not the time anyway. Maybe once you go back to work full time would be a better time?

LavenderLily_2

Thank you very much for you honest advice.

I hope to return to work full time in about 2 years so will get saving!

Conrad

Lily - over the next 12 months the market should present a significant buying opportunity due to market difficulties. These troughs only come once every 15 years or so. My advice is to save hard and plan to buy in the next 12 months. After this prices could start to increase again.

All depends on the market conditions, but the key thing to keep your eye on is mortgage supply. The current mortgage famine is what is causing prices to drop. Keep an eye on the news.