FTB and Renting Advice

marginalone

Hello everyone,

Looking for a bit of advice on two things.

Firstly, my lease for the flat im in runs out on 1st July. Ive been in here since last june and I have been paying £450pm ( 2x 6 month leases )

I was thinking of staying here a while longer, but the letting agent has informed me that the rent will shoot up to £525 or more per month due to the area I live in and the going rate for a 2 bedroom flat with ensuite bathroom thats a bit dowdy to say the least. ( Strange that, Ive had 2 leases at £450pm )


Im debt free and work in sales earning just over under £36k last year. Ive been given a promotion at work giving me a base salary raise of £21,600. Again I will earn over £30k this year with comms added.


My questions are: Should I look for a flat to rent at £550pm - I need two bedrooms for my music equipment. or attempt to get a 100% FTB with no deposit?

Im aware of the housing market at the moment and banks tightening the rules - which I do agree with as they gave too many mortages to people already in debt.

m1ntie

What are property prices like in your area eg 2 bed flat to buy.

I think it is likely that you would only be able to borrow about £65,000 - £70,000. Many lenders will disregard commission when looking at earnings.

Also you are likely to need a 5% -10% deposit plus money for fees etc.
I dont think you should consider buying at the moment.

marginalone

In my area in glasgow the flats 2 bed are about £110k+

Its just the thought of renting longer and paying someone else's mortage lol

Whats the normal notice period to move out?

m1ntie

Yes I fully understand, however on those figures I really dont think you can afford to buy at the moment.

I am not sure about the housing market in Glasgow but it is generally considered that prices will drop significantly over the next couple of years in most areas.

Why not try and negotiate with your present landlord for a 12 month deal at £500, then try to save as much as you can so you at least have a deposit.

marginalone

He wont negotate. Ive asked for 12 months before and was refused

Dinah93

If I was in your position I would be saving a deposit in a high interest account. No one anywhere seems to be predicting house price rises of 6.5% this year (what you could earn in a savings account), and if you buy now you may be buying a devaluing asset. In a couple of years you will be in a stronger buying position with regards the deposit, and you may be able to get more for your money. Also bear in mind there are very few 100% mortgages left at all, and those there are are likely to have an awful rate and high fees.

marginalone

Thanks for all the valuable advice. I'll attempt to find a place at £550pm

m1ntie

I agree it is difficult to feel settled in a 6 month agreement, perhaps your best bet is to look elsewhere for a 12 month.