Help confused FTB

ConfusedFTBs.com

Hi, first time poster here but long time lurker and found a lot of useful information. We're first time buyers and living at home, we've been saving for a deposit for 18months and reached our 10% target and been looking at houses since January. We found a house we loved at the beginning of April and had to bid against 2 other buyers to eventually get our offer accepted. (south east england). Since then we've waited for the vendors to find a house which they have this week (9weeks). Since we had our offer accepted the news has been very negative and opinions of friends are "why buy now?" We love this house but we couldn't afford to lose all the money we've saved as budgets are tight and buying ourself out of negative equity would be difficult if not impossible. Do we take a risk and go for the house we love or pull out? 'Gazundering' isn't something we would consider as if we were in that position we would be outraged.
Completely confused any help/opinions would be greatfully received?

Lavendyr

Are you buying it as a house or a home? Are you planning to stay there for several years? If it's going to be a home, and you can afford the repayments (even if they go up by 5%) and you're not going to have to move for a while, why not go for it - especially if you really love the house. That's my view anyway, as a would-be FTB.

ConfusedFTBs.com

Thanks for the reply, its a 2bed terrace so we could and intend to live there for 5-10years, it probably won't be our final home though! We have a 3year mortgage offer, our concern would be if house prices fell substantially and then being forced onto the SVR. We have no idea what it would end up costing us would we, it could be more than we could afford?

clobber_2

HAve you worked out what the repayments would be on the SVR a) now and b) if IR went up to 12+%?

brit1234

If you are truly after your dream house, just wait 6 months. Price falls are gathering momentum and you will be able to afford a far better home.

Just think of the improved quality of life you could have by just waiting a little. Plus you won't have the worry of negative equity in the back of you mind as many recent buyers are now starting to have.

ConfusedFTBs.com

On the SVR now we could afford it if we 'had' too but we'd have to lose the weekend curry, its 7.75. In 3 years who knows what that could be though. Crystal ball anyone! At 12% i'm pretty sure we couldn't survive, repayments would rise by 850. I dont think furture pay rises will cover that in 3 years!