Buying a house within 9 months - baby on the way!

happytails

Right, i have posted on here before about saving a deposit. Circumstances have changed and we're expecting a baby :jtrouble is we want the house before the baby arrives (28/2/09) This means sacrifising the 10% deposit we wanted to put down and putting a 5% on down. I know alot of you will think that is bad and i know where you are coming from, but our family and our needs are more important than saving a few grand - to be frank.

Anyway, if we want a house by Feb 2009 when do we need to be looking/putting offers in etc and actually getting a mortgage?

Also, we wanted a 3 bed but as we are pressed for time and money so were thinking of getting a 2 bed with a decent garden and look to get an extension in a few years time? what are your opinions on this - bearing in mind we need a house by Feb?

We can realistically save £500 a month or more plus OH may be able to get upto 4k on a private project ( this will really help us obv! )

Help and advice will be appreciated

Thanks

helping_hubby

Being someone who has just exchanged on a house I can understand. But we had a 23% deposit which made getting a mortgage a lot easier. When I was looking there wasn't much about for a 5% deposit, but I suppose it is possible as there have been threads on the mortgage forum with questions regarding a 5% deposit.

From my experience of looking for a house for the last 12 months, it might be quite hard finding somewhere. For starters there's not much about compared to when I was looking 2 years ago and you seem like you're looking for something quite specific. I'd say you need to be open to some compromises.

I've not been pregnant, but I can imagine that you do not want to be moving while heavily pregnant, so bearing in mind that it's possible for a house to take months to complete, I suppose you need to find something now?

timnicebutdim_2

Hi, first of all congratulations! I did this last year when my gf was pregnant all within 5 months but we had a flat to sell as well and it is do-able, just involves a lot of work and a bit of luck. For me the process involved;

1. Seeing if you can get a mortgage that you can afford: have a look on the internet to get a feel for the monthly costs. Then see a couple of independent mortgage brokers to see if they can beat the rates you've looked at. Then get a mortgage in principle offer.

2. Budgeting for the next two years on a spreadsheet all your income and estimated benefits and all your outgoings. Nows the time to do it cos you will probably have a reduced income, a mortgage and a baby!

3. Look at about 10-20 properties that you've shortlisted on sites like rightmove.
4. Shortlist again and do 2nd viewings. Then put in some silly offers and hold fire for about a week or so before making any counter offers as its a buyers market.
5. Then start the mortgage application, instruct a solicitor and surveyor.

All the above could probably take about 2 months, but then allow 8-16 weeks for a reasonable period in which to exchange and complete. You could possibly be in by christmas if it goes well. Also bear in mind costs like stamp duty, solicitor costs, mortgage arrangement fees etc (allow 2-3k) and also furnishing costs. Good luck with whatever you decide to do

Sir_Humphrey

happytails wrote: »

Right, i have posted on here before about saving a deposit. Circumstances have changed and we're expecting a baby :jtrouble is we want the house before the baby arrives (28/2/09) This means sacrifising the 10% deposit we wanted to put down and putting a 5% on down. I know alot of you will think that is bad and i know where you are coming from, but our family and our needs are more important than saving a few grand - to be frank.

You might have a job getting a 95% mortgage now.

If you wait around, what you have saved now should become a 10% deposit. That is why house price falls are good for FTBs.

You need to consider whether negative equity and not being able to move/becoming trapped on SVR is good for your family.

Only you know your circumstances in full, but buying so soon is unlikely to be good in financial terms. Probably not what you want to hear, but this is a moneysaving site.

pickles110564

Sir_Humphrey wrote: »

Probably not what you want to hear, but this is a moneysaving site.

Unless purchase price is less than 50% of price of other local marketed properties.

lynnexxxo

Whatever you decide, remember that babys are small and don't really care much about there house - as long as they are warm, dry and cuddled he/she won't give a hoot about where you live.

Also consider the cost of childcare if you are going back to work afterwards, or the reduction in income if you don't. You may be shocked as to how much it will cost and might find a big mortgage even more of a struggle.

happytails

Hi

We just want to be in a more stable situation than being in rented accomodation. We will need a house as we have 3 big dogs already and just thinking if we get a mortgage before baby arrives they will only class it as 2 adults, when baby arrives obv it will be 2 adults and 1 dependant - i was told this reduces the amount you are able to borrow.

To answer the question about working after baby is born, i wont be, but i dont work at the moment (health reasons) so its just going to be my partners wage anyway, we are used to it plan to work when youngest (whenever that will be) starts school. Its just not worth working and missing my childs early years - i would come off any better financially really.

We will start looking now for something suitable now then, say a house is £115k here now - would a 'silly' offer be like 80k????? just to get a rough idea.

ta ,
Sarah

CHARDONNAY_3

Congratulations on the baby!

However I think you might struggle with a 5% deposit, we did when making enquiries almost a year ago, so must be virtually impossible now.

We, like many others, decided to wait and save. While I appreciate your circumstances are different (baby on way!) I think it's still best advice.

My friend has a 6 month old baby and she and her boyfriend only have a 1 bed flat which they rent cheaply from her sister. They too are saving for a deposit but don't expect to be able to buy for at least a year or so. Not ideal but at least they are in best financial situation and can enjoy being new parents rather than worrying about negative equity etc.

Re offer of 80k on 115k, doubt it would be accepted. Many sellers aren't that desperate to sell and would rather hold out for upturn in market. However, all decisions are yours, so good luck, regardless.

SquatNow

You could just rent you know.

Babies arn't allergic to rented houses.

happytails

SquatNow wrote: »

You could just rent you know.

Babies arn't allergic to rented houses.

Not on about the baby in the rented house, im bothered about the possibilty of the landlord saying she wants us out, she's selling. And having to find somewhere with a young baby and 3 big dogs. I would rather have my own house that i know im not going to get kicked out of (i can afford the repayments/bills), that i can actually decorate and have it how i want it

0writer

Without sounding too negative, there is no way you will get a mortgage with 5% deposit. I think there is just one lender that still offers 95% LTV but the interest rate is ridiculous.

Although it is difficult, try and save as much as you can to increase your deposit and the other advantage is that in the current climate some vendors are offering to pay 5% of the deposit, although make sure that the conditions of this are checked by your solicitor first.

Best of luck.