Advice for possible first time buyer

L

loucious

Guest
Hi all,
With house prices falling and an imminent change in my family circumstances, I am thinking about applying for a mortgage and looking for a small house to buy. I am currently a council tenant with a fairly safe and solid job and would be a first time buyer. I would also have some savings for a deposit.

Thing is though I don't have a clue about this kind of thing, so I was just wondering:

a) am I mad to be thinking of buying in this climate?
b) will anyone give me a mortgage?
c) what type of mortgage would you recommend? i.e. fixed, tracker, etc.
d) which institutions offer the best rates/terms?
e) how much will I get? i.e. Is it still 2 1/2 times annual salary?
f) should I go to a mortgage broker?
g) anything else I should consider?

Thanks in advance.
 
I think you're asking the wrong questions by focusing on the mortgage side. A talk with a few banks will quickly answer if & how much of a mortgage you can get.

Will prices go down further, probably yes.

You should also think about:
- forget about the "ladder", you should be looking for a place that will do you for the next 10-20 years.
- how secure is your income? How likely is it to change? (marriage, kids etc)
- Interest rates are very low now, how much will the payments be when interest rates go back up by 3-4%?
 
loucious said:
Hi all,
With house prices falling and an imminent change in my family circumstances, I am thinking about applying for a mortgage and looking for a small house to buy. I am currently a council tenant with a fairly safe and solid job and would be a first time buyer. I would also have some savings for a deposit.

Thing is though I don't have a clue about this kind of thing, so I was just wondering:

a) am I mad to be thinking of buying in this climate?
b) will anyone give me a mortgage?
c) what type of mortgage would you recommend? i.e. fixed, tracker, etc.
d) which institutions offer the best rates/terms?
e) how much will I get? i.e. Is it still 2 1/2 times annual salary?
f) should I go to a mortgage broker?
g) anything else I should consider?

Thanks in advance.
Click to expand...

I too am a first time buyer. Initially i went to a broker and then realised it is better to research rates yourself (i am a suspicious person by nature :)

First thing to do is get a book on buying a house. Then you should also go to itsyourmoney.com and print out all the info on buying a house.
You really need to educate yourself fully and scrutinise everything. I really mean that because there is alot of info that you don't realise until you fully read a book and some literature (especially from itsyourmoney).
Also, don't rely on websites for info on interest rates - ring or visit the institution yourself. I realised that some websites had misinformed me on this. NOW I WILL DIY it from now on!!!!

I am waiting a little longer before i buy. They will probably keep going down, i can't see things change.
Good luck
 
Oh and as for placing an offer. There is alot of info on this website that helped me alot!!!!
 
I feel location is of prime importance especially schools public transport, possible development building plans in general area. A little bit of sniffing around will tell alot.
 
Thanks for the info lads.
I had planned on waiting for another year or so but the "ideal" little cottage has come on the market in a part of the county where we had planned to relocate to, and it is competitively priced.
We are going to have a look at it over the weekend to see what condition it is in and see how much will need to be spent on top of the initial buying price.
 
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