Buying a house in Scotland?

Midgie

Can anyone advise me about buying a house in Scotland?

I'm a first time buyer with a small deposit - not quite 5% yet but I'm still saving!

I'm looking to buy a flat asap but I'm worried about

a) getting a mortgage of at least 95% or if possible 100%
b) buying a place if the house prices are going to drop

Anyone advise me about whats the best way forward?

Thanks

cashpoortimerich

Whereabouts are you looking to buy? All reports indicate that prices are still rising in Scotland, but it is expected that prices will follow those in England soon enough. Prices are 'generally' lower than in other parts of the country, but in the cities are very much at the mercy of the microeconomy of the part of town you are looking at.

Have you bought in Scotland before? Do you know about the 'offers over' system?

lynnexxxo

Think you'd have big problems trying to get a 100% mortgage at the mo.

Keep saving, the more deposit the better. Have you found a place you are interested in? If not I'd be tempted to hold off a few months and see what happens with the market.

Also depends on the area and type of flat you are looking to buy, for example a lovely tenament in the west end of glasgow is always going to be desirable. A new build on the river front - maybe not so much (read will drop in price).

Midgie

I've been looking in the southside of Glasgow.

I saw a property last night that I'm really interested in - its an ex council flat in a nice area offers over £90,000.

I really want the flat but I'm scared of rushing things and making the wrong decision!

cashpoortimerich

I agree with lynnexxxo that you might have bother with a 100% mortgage, and I fully expect that properties will be cheaper this time next year. That said, you do need somewhere to live and if you plan to be in the flat for a long time then there's every chance the price could have dipped and risen again by the time you move on; there is literally no way of knowing.

Check out a couple of things very carefully though. What is the close and back court really like, are there signs that the neighbours all take care of it and is the factor (probably GHA?) looking after it properly? Is it in an area that is about to get parking restrictions and will this affect the 'niceness' of the area? Victoria Rd used to be a nice place to shop with lots of independent local shops...
What is it like at night? Peaceful and traffic free during the day can be dim and full of listless teenagers after dark. If you know Glasgow already then you have a fair idea of how the nature of an area can change sharply from one street to the next.

Is it at least a two bed at that price? Is it all secure entry, DG, CH etc? Any way you could add value?

ps I have a nice two bed flat in King's Park to sell, it's not on the market yet but I am open to offers!

lynnexxxo

I'm thinking you've got a case of heart vs head.

You head is telling you it's probably not the time to buy, to much uncertainity, possiblity of negative equity, not being able to get a decent mortgage rate.

You heart has what colour you'd paint the bedroom planned, and how nice it would be to cook in the kitchen and have your friends over.

Write yourself a list :
How much would the mortgage be?
What if the interest rate was higher?
What % of your salary would it be?
Does it have an extra room for a lodger if your struggling?
Would the flat be big enough for you and a partner (and possibly a baby)?
Is your job secure?
Would your job be secure in a recession?
How much could you rent a similar place for?
Do you know the area well - you checked it out after dark and at weekends?
Are you prepared to accpet you might not be able to sell in the next few years withou making a loss?

Midgie

I'm a first time buyer - still living at my parents so staying where I am isn't a problem (well not a big one anyway).

Its a three bedroom flat in Merrylee - my friend would be moving in with me and paying rent though the mortgage would be mine!

I might take you up on that offer of King's Park

carolt

Have a look at this thread over on the House Prices sub-board:

http://forums.moneysavingexpert.com/showthread.html?t=859345

*Louise*

Midgie wrote: »

Can anyone advise me about buying a house in Scotland?

I'm a first time buyer with a small deposit - not quite 5% yet but I'm still saving!

I'm looking to buy a flat asap but I'm worried about

a) getting a mortgage of at least 95% or if possible 100%
b) buying a place if the house prices are going to drop

Anyone advise me about whats the best way forward?

Thanks

I would say the best thing is to look into what mortgage you could get before you get keen on a property. Find out what the interest rate will be, how much it's going to cost you per month, whether it's fixed term etc. Then start looking.

Very much doubt you will get a 100% mortgage, but at least you have some deposit.

Worst thing about the property market in Scotland is the 'offers over' system....sellers are usually looking for 10-15% over the price stated. Although a lot of people (in my area anyway)are moving to fixed price after a couple of weeks.

Good luck.:D

Midgie

Thanks for your help guys!

I hate being logical but I think the head ha got to rule this time!

I think my best bet is to keep saving and hope a flat like it comes on the market in a couple of months time