First-time buyer: how long should I wait?

Kinger1983

Hi all

My boyfriend and I are looking to buy our first property; I anticipate us being in a position to buy (dependent on whether or not we find somewhere we like within our price range) by the New Year.

I'm very much... well... clueless, if I'm honest(!) so I'm looking to become a little more savvy and start my research now.

I was wondering what your opinions were on how long we should wait to buy? With house prices going down and interest rates going up, is a tracker or fixed rate mortgage best? Would we realistically be able to find a good capped tracker, or can you only get capped variable mortgages?

I know that no-one can safely predict what the market will do, but most of you are equipped with much more financial knowledge than me, and I'd be really interested to hear your thoughts on how long interest rates are likely to continue to rise for and how steeply?

All comments greatly appreciated!

Becky

homer_j_3

Becky,

If you are looking to buy a home and not an investment then you should wait until you have enough money to buy it without over committing yourself.

You should be looking at having a 10% deposit and also looking to have your mortgage repayment somewhere around the 30% mark of your take home pay. That assumes no other debt too.

I would say that by having these 2 factors covered, you will be equipped for any market fluctuations.

You should be looking at protecting your mortgage and ensuring that you cover these costs in your budgeting. I am not sure of the exact figures but from my experience, people who get into trouble financially, do not do so on purpose so it makes good sense to protect yourself properly. Part of the protection strategy should include a minimum of 3 months savings put to one side.

What rates are best suited to you will very much depend on your personal circumstances at the time you take the mortgage out and it will be impossible to say at this point, which way to go.

dancingbrave

Becky,

My advice would be to not even think about buying this year, and most likely next year either. We're at the start of a house price crash which could easily last see house prices fall 30% over the next year or 2.

Rent and save what you can for your deposit and grab yourself a reasonably priced housse in 2 or 3 years.

Housepricecrash.co.uk is a great site if you want to educate yourself about the present state of the housing market.

Cheers...Graham