looking to buy my first home advice needed
 

I am looking to buy my first home. I Live in kent and the houses prices just seem to be going up and up and if i dont buy soon i dont think i will ever be able to.

I currently earn about 28- 32k a year but i do have a personal loan of 15k but no other outgoings apart from that as i have a company car etc.

Have i got any chance do you think. Could one of my parents join me on a mortage to help me get a higher one. I was also thinking about renting it out for a bit as i dont mind living at home but i suppose if i had my own place i would want to move out.

Average 1 bedroom house prices start at 130 -150 k

any advice would be good thanks

Well son £150k house you will need a 10% deposit (usually) so there is 15000k to start and then the mortgae repayments on the remainder would I would hazzard a guess a grand a month??? something like that? I have an 86k mortgage and pay 490 a month.

Its a big step and go for it if you can, I wouldnt rent if you are looking to buy its just money thrown away that you could be saving for a deposit, my only tip is try and fix the interst rate at something you can afford for the next 5 yrs if you are stretching yourself, then you can be sure you have it cobvered if the interest rates go up cos 1% raise on a big mortgage can increase your monthly repayments by a lot.

Im sure otheres wil tell ya different but thats my twopennyworth.

Any outstanding loans are taken into account when mortgage lenders calculate how much they will give you. A £15k loan is a lot on what you earn (about the same as me :)). I cleared all my debt last year before getting my mortgage as it meant no reduction to the mortgage available.

You dont have to have a deposit (I didnt), but interest rates are generally higher if you dont have one and you leave yourself open to negative equity if prices fall.

I'm not in a position to advise on mortgages except to say speak to someone like an IFA that is! I am sure you have been told this but it will be a huge financial step to move from home to your own place and taking on the mortgage and everything else. And I suspect if you got a standard-ish mortgage you would be breaking the terms of the policy if you just rented it out. But, skinning a cat and all that, may be you could work out a deal with an IFA whereby your old man takes a buy-to-let mortgage and you pay him the interest with the understanding (in writing perhaps) that the property is yours.

Perhaps you could think about a flat instead of a house to start with?

Or find a rich g/f :)

sounds cool but go for an interest only mortgage, easy on u anyways 25 yrs time yer property would increase God willing 4 x or more fold

My personal opinion is that you need to clear your debts and save a deposit before even thinking about taking out a mortgage on 5x salary. Even consider renting, it's not dead money if the market begins to fall. If it does fall, and you have no deposit, you will be in negative equity in day 1.

Don't be taken in by the spin that property prices are going to go up forever. This just cannot happen.

In 2002 the average house price broke the £100k barrier. In 2007 it has now broken the £200k barrier. In the same 5 years how much have peoples earnings gone up? The current rate of HPI just cannot continue.

If you buy now, you will be buying at what is probably the top of the market, just as the "bubble" is about to deflate or burst. Again, all just my personal opinion.

If you would like to hear more reasoned arguements about the housing market, look at
Home > House price news, information and discussion - HousePriceCrash.co.uk
The forum on this site has some good info.

Si

This was for a flat lol

I no i should really clear my debts first its just going to take at least another 2 years

mate for the price of rent u r paying its cheaper buying a house and trust me, its gonna go up and up even if it levels for a few yrs

What about thinking of those 50% share houses/flats? At least it gets you on the property ladder.

that sounds good clare, is it only the government that does that wae people

cheers

Deffo speak to an IFA or at least two - you will be amazed at what they can offer. The paying off your loan IMHO would be advisable but not essential in taking out a morgage (some calculated on what can afford) - especially if can put something down as a deposit. Maybe your folks can lend you some as a deposit ?
Richard

Just like in the US right? ;)

Moses, it is housing associations that do it I think :)

thanks luv, i will check it oot, if its fae housing association i doubt a normal guy can get them tae chip in , sounds cool though and thanks :)




and pete i dont know much aboot the usa mate regarding house prices

chees anyways :)

Moses,

No offence but it doesn't sound like you know much about the property market in the UK or the US.

It is not going to continue to go up forever, it is just not possible.

FYI the US housing market is going down like a lead balloon. Some pundits are talking about 60% drops in certain areas. The UK housing market is often regarded as being very similar to the Uk market, only 6 months ahead.

Si

I remember reading an article about that a few years back by Warren Buffet. He outlined the fundamentals behind the housing market and said that the US was due a crash etc. Now he's the 2nd richest in the world. A very astute investor.

Exactly the same situation is present in the UK, if not worse, and yet all the armchairs experts think they know more.

Ditch the loan first and get some savings for the deposit

As for continued increases in values,all well a good but my wages and most of the country's haven't doubled or tripled in the last few years to keep up.

First time buyers having to earn £30-£40k a year just to buy a flat.This market is potty!

Clear your debts, get a nice sized deposit, and then you will need a little more on top to furnish the place.

I would have thought on a mortgage that size, if you borrow 150k and you can get 10k deposit, 140k mortgage should have repayments over 35 years of around 700 - 800 a month. If this is a flat, dont forget to add ground rent, probably another 100 per month, then after that all you need is money for all your bills, food etc.

Ignore all advice from everyone here and go and see an IFA. (unless someone here suggested going to see an IFA) :D

You don't need an IFA to tell you a few basic facts-

1) Clear your debts.
2) Save a deposit.
3) Be sure you aren't paying for a house which is vastly over-valued.

I suspect an IFA will just try and sell you a mortgage.

si