Buy now or later??

yasmin2

Hi,

Just after some advice please.. I am a student and looking for somewhere to buy at the moment.. I work part-time (20-30 hrs per wk) whilst studying and probably earn about £1000 a month but as I am on holiday at the moment, I am able to earn double that with overtime/extra hours.

Now my question is, do I pursue a mortgage at the moment so that my overtime etc can be considered or do I leave it another six months/year, scrimp like mad and try and save more towards my deposit, the downside to this being that I won't be able to submit any overtime etc for consideration..I will also end up spending about £3000 on a 6 month AST. I know it sounds stupid but I think subconsciously I don't want to spend all that money on rent when it could be going to towards paying a potential mtg.

Any suggestions??

~Beanie~

Where do you live, are house prices cheap enough for you to get a motgage on small salary like that? Do you have 10% deposit?

yasmin2

It's in the East Anglian region.

I have a 5% deposit and I would be able to afford (just about) a one-bedoom flat as long as I didn't offer the full asking price which I have no intention of doing in the current climate. Part of me is wondering is whether I should just leave it a few months, pay off a few debts and try and increase my deposit.. But the downside is that extra hours/overtime won't be considered when I am applying for a mortgage..

What's bought it to a head is that a flat has come onto the market that would be perfect for me and my needs over the next four years. I had considered it (the flat) earlier but it quickly got snapped up, it's now back on the market. I have been looking for several months now and there was nothing suitable.

Any help/advice appreciated. Thank-you..

medic1978

I think it'd be crazy to buy now, in your circumstances. You're studying, have no secure job, have some debt and only 5% deposit.
I'd have thought it'd be very difficult ?impossible to get a mortgage at a decent rate.

Study hard, buy a place when you have full time job after graduation, prices may even be cheaper. Remember that although you're paying rent and see that as a waste, you will be spending similar, ?more on interest on your mortgage especially in the early years

phlash

How much would you spent on the interest on the mortgage you would be getting in those 6 months?

I bet you think "renting is dead money". Well it isn't when assets are depreciating and the interest on your debt is wildly variable, whereas rents have far more stability.

herbiesjp

Lenders will look at what you are currently earning, in your current work.

Overtime is not normally guaranteed, and so many lenders will not take that into account.

If you had a job lined up (signed contract etc) then a lender may take that future income into account, especially if it is for what they class a professional occupation.

Have you thought about a guarantor mortgage?