Help - time to buy???

carolt

If even IveSeenTheLight is saying don't do it - and he's one of the more bullish posters on Scottish property prices - then, really, take his advice and don't do it.

Why?

Because:

1. 35 years is way too long.
2. 6.8% is high.
3. Monthly costs will be too high.
4. Borrowing a deposit on top of a 35 year mortgage in a potentially falling market is just one debt too many.
5. Pretty sure that if your lender knew your deposit was a loan not a gift they wouldn't be offering a mortgage to you anyway. So it's illegal.
6. One bed flat prices are likeliest to be hardest hit in any downturn.
7. Property prices are unlikely to rise in the next couple of years and may well fall. I personally think they will, others are not so sure. But given 1-6, it's not a risk worth taking.

But your call. You seem determined to do it.

Do remember that the advice you get on here is impartial, in that we don't get paid any commission for it, as your IFA does. Some unscupulous IFA's, particularly in the current market, where work is thin on the table, may try to tempt you into a mortgage that is unsuitable, in order to earn their commission. See:

http://business.timesonline.co.uk/tol/business/money/property_and_mortgages/article3694804.ece

on how times are currently very tough for mortgage brokers and advisers.

carolt

miss_kitty wrote: »

Sorry, still not a spoof Mmm...I know, I'm only 24 at the moment, so I do have time to reduce the number of years once I'm on my feet?

Have you not heard of the credit crunch?

There is a very real possibility, particularly if the value of your flat falls, but even if it doesn't, that you will not be able to remortgage to a cheaper rate any time soon, or ever.

Don't make yourself another repossession statistic. At 24, you're too young to remember the last crash, but I do, and it wasn't pretty.

Wait and save. Then you'll be in a good position to buy in a couple of years.

bobby-boy_2

Miss Kitty I am not a property crash believer but I think you should follow the advice of a previous poster and rent for a year. This will cost you more than living with your parents and may hinder your ability to save a deposit BUT it will give you a good insight into the costs of running your own home! Council tax, utilities, furniture (posibly) cable/sky costs, telephone, shopping all the things your parents probably cover at the moment.
Hope this does not sound harsh but I have teenagers and they have no concept of the cost of running a house above rent/mortgage costs. Its all "free" as far as they are concerned.

IveSeenTheLight

miss_kitty wrote: »

Well i've worked out I have £150 per month, until the next 10 months to pay off loan etc then it will be £400 p/m.

So you envisage that 250 pounds per month will cover electricity, council tax, gas, water, contents insurance, savings for an emergency fund, phone bills, transport, food and the legal fees.

You also estimate you can afford a 35 year mortgage when you only envisage staying there 3+ years.

I can understand the desire to have your own place but I would rent / stay at home for those 3 years and save until you envisage you would want to be in a house for a little longer.

scattymam1

Some good advice on this thread here miss-kitty,
why not rent for a little while until you know what your bills will be and if you can afford to keep it up etc; We were comfortable when we first took out our mortgage but now with everything rising e.g. gas and electric, council tax, etc; things are suddenly tight. So check it out first, give it 6months to a year and then you'll know how much you'll need to be spending and how much you'll be able to afford. They may borrow you a certain amount but you have to make sure you can pay the monthlys sweetheart, good luck with your decision.

miss_kitty_5

Thanks for the advice, after this (much better than the help from my financial advisor) i've decided to turn down the position. Hopefully this time next year, I'll be in the position to look for somewhere and have no loans/etc to pay and a deposit! I think I'm the only one left amongst my friends who don't have a flat/house, but then again, there's isn't bought yet, so they will probably have this problem in the next few years, plus staying with the parents, isn't that bad.........Thanks.

geoffky

you dont realise it yet but you have just made the best decision you have ever made... and think of every pound you save is one step nearer..

miss_kitty_5

Thanks, its just hard knowing the flat (the one my relative offered) was the one I always wanted, new kitchen, new bathroom, to my taste, was ideal