First Time Buyer Help

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First Time Buyer Help

Postby Denzil on Wed Sep 13, 2017 4:18 pm

I am currently looking to buy my first place and am looking for advice from anyone that has gone through the same thing in recent years.

Currently speaking to a mortgage broker who has given me feedback on what's available. One mortgage is available at a fixed rate of 2% over two years on a 5x salary multiplier on an 85% loan to value which then changes after two years to 4.2% (I assume I am not tied in to that and can change after two years?).

Another is for 4.5x salary but at 1.45% with another lender - not seen the full details of that yet.

The main part I wanted to talk about is that when I first spoke with him he suggested looking in to help to buy schemes as they can increase my buying potential especially within London Boroughs where I am potentially looking. Question is, does anyone have any further info on this that has actually done it themselves? If I sell up in say 2-3 years, will I then have to downgrade as I will not have the extra equity? Or are there ways around that? I hadn't really considered it but I'd rather get some feedback from people who have done it themselves...it may be one of those "don't touch with a barge pole" type things but there must be some kind of draw to it surely, other than it means you can get a bigger place for your first house/flat?
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Re: First Time Buyer Help

Postby kayahammer on Sat Sep 16, 2017 3:02 am

My grandfather's advice to me 25 years ago.

If you can, buy a house over a flat, or maisonette, even of you have to move a little farther away.

Borrow as much as you can, and buy as big as you can afford.

Proved to be sound advice then.
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Re: First Time Buyer Help

Postby cockney farmer on Sat Sep 16, 2017 8:40 am

Both my lads have r century bought (or moved) , I advised them to get a fixed for as long as they can to get them stable after what is a very financially draining move , interest rates will start rising and soon
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Re: First Time Buyer Help

Postby mumbles87 on Sat Sep 16, 2017 10:14 am

cockney farmer wrote:Both my lads have r century bought (or moved) , I advised them to get a fixed for as long as they can to get them stable after what is a very financially draining move , interest rates will start rising and soon


sound advice

I bought my first house 3 years ago on a 4 year deal.. when it expires next year I plan to switch to a 5 year fix to see first born into school years before I have to adjust it again

took out a 35 year mortgage at the time but when I remortgage I've got enough equity now to change to a 25 year deal for the same PCM
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Re: First Time Buyer Help

Postby bubbles1966 on Sat Sep 16, 2017 1:06 pm

Denzil wrote:If I sell up in say 2-3 years,


....you'll probably have hardly any additional equity because most of the early repayments are interest rather than capital and the costs of selling/moving will chew up what you accrue.

No one knows for sure the way prices and interest rates will go but sale prices have stopped climbing quickly in London and the number of sales has dropped over 40% since March 2016. The financial markets think interest rates are more likely to rise than fall.

This will tell you what's going on in the local area you want to buy in if you play about with 'customise your search' : http://landregistry.data.gov.uk/app/ukhpi/explore" onclick="window.open(this.href);return false;" onclick="window.open(this.href);return false;
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Re: First Time Buyer Help

Postby Denzil on Mon Sep 18, 2017 8:48 am

Thanks guys, some great advice. I would much rather a house than a flat but in terms of budget and area that seems to be difficult at the moment. Problem is I need a station within walking distance. Interesting what you say re maisonette, I was actually avoiding even looking at them but are they more desirable than flats then in terms of holding value?

With help to buy the draw is that it can put me in a bracket of affording a new house but I do not like the fact of not owning 100% and can imagine it causing problems down the line when I sell up. Will avoid those schemes then.

:thup:
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