its only taken 5 months

mkirby

but i finally have bought a house. Just got back from the bank and forked over 24K will never see that amount of money again.

Get the keys on Friday. Now have a whole garage to fill with bikes and stuff.

Mr_Cellophane

I wish you could buy a house with garage for only £24k down south.

Clever Pun

well done,

the deposit and fees etc make quite a horrible hole in your cash don't they

Garage.. excellent work, make it secure and fill it

dhope

Mr_Cellophane wrote:

I wish you could buy a house with garage for only £24k down south.

I imagine the £24k was the deposit

Mr Sworld

dhope wrote:

Mr_Cellophane wrote:

I wish you could buy a house with garage for only £24k down south.

I imagine the £24k was the deposit

I've got £40,000 as a deposit and still can't buy a house down south!

rjsterry

mkirby wrote:

but i finally have bought a house. Just got back from the bank and forked over 24K will never see that amount of money again.

Get the keys on Friday. Now have a whole garage to fill with bikes and stuff.

Does make your hand go a bit shaky when you sign the cheque doesn't it. And when you write out the amount in words.

DonDaddyD

Is that because you can't get a mortgage or because there deposit isn't enough.

Surely the former?

gtvlusso

You wait until you want to get a bigger house - lovely £8k of tax to pay! And as the housing market is on it's ar$e - allot of people don't have enough equity to move up the ladder! Allot of people I know are in theis situation - cannot save for a deposit and not enough equity to move - even know people who are renting rooms out in family homes! Or couple living in the lounge in small houses so that there kids can each have a bedroom......

asprilla

Casually looking for a bigger house at the moment, but there is absolutely chuff all on the market. Plans shelved till next year.

rjsterry

DonDaddyD wrote:

Is that because you can't get a mortgage or because there deposit isn't enough.

Surely the former?

£40K deposit might get you a £160K property, i.e. a 1-bed flat. A bigger loan-to-value than that, and you get into silly interest rates.

aldric

rjsterry wrote:

DonDaddyD wrote:

Is that because you can't get a mortgage or because there deposit isn't enough.

Surely the former?

£40K deposit might get you a £160K property, i.e. a 1-bed flat. A bigger loan-to-value than that, and you get into silly interest rates.

sic.. move up north

Some nice roads to commute on up here with half the traffic.

DonDaddyD

rjsterry wrote:

DonDaddyD wrote:

Is that because you can't get a mortgage or because there deposit isn't enough.

Surely the former?

£40K deposit might get you a £160K property, i.e. a 1-bed flat. A bigger loan-to-value than that, and you get into silly interest rates.

Isn't it 3 times your salary and a ** percent deposit?

So assuming 10% deposit: the property is worth £400,000 and the loan amount is £360,000.

If the Mortgage is for £360,000 and the person is a first time buyer (hypothtical of course), earnings or joint income would be around £120,000pa.

rjsterry

You'd be lucky to find someone offering a 90% loan-to-value mortgage these days, especially with property prices falling or static in large parts of the country. If they did, the interest rate would be very high. The chances of buying a £400K house as a first time buyer, even with a joint income of £120K, would be 50:50 at best I'd say. Once your on the ladder, it gets a lot easier.

bigmat

rjsterry wrote:

You'd be lucky to find someone offering a 90% loan-to-value mortgage these days, especially with property prices falling or static in large parts of the country. If they did, the interest rate would be very high. The chances of buying a £400K house as a first time buyer, even with a joint income of £120K, would be 50:50 at best I'd say. Once your on the ladder, it gets a lot easier.

Average first time buyer deposit these days is around 25% I think. In the context of claims, lending at a LTV ratio of 90%, in fact anything over 80%, is arguably negligent by lenders so not surprising they are reluctant. Can't see how anyone can get on the ladder in London at the moment unless very high flyers or getting help from family etc. I guess there are bargains out there, and schemes to assist key workers, joint-ownership etc.

c£24,000 might have been enough to buy the OP's garage?! I couldn't run to a garage myself, but I now have a lovely bike shed!

mkirby

2 bed semi, garden and garage.

Mind i live 20 miles north of newcastle so bit cheeper than London. Bought it for 115K 20% deposit.

rolf_f

House prices wayyyyyy too high. Only solution is to go back to the old days of 3.5 times your salary mortgage maximums to keep things under control. My house was 65k 10 years ago. And it isn't a starter home. Don't need to much about on any 'ladder' - I bought the house I wanted. Couldn't afford half of it in todays money though.......

dancook

I just bought a house with my girlfriend £31.5k deposit and £178.5k mortgage, I did some research and got a mortgage with Brittania, quite pleased! the mortgage payments are less then the rent that was on our 1 bed flat hah ..

Mr Sworld

dancook wrote:

I just bought a house with my girlfriend £31.5k deposit and £178.5k mortgage, I did some research and got a mortgage with Brittania, quite pleased! the mortgage payments are less then the rent that was on our 1 bed flat hah ..

How much research? What happens when interest rates start to rise again. I still remember the 15% interest rates of the 90's.

I really don't know what is going to happen to the housing market, people have given up saving for retirement and seem to assume that house prices will continue to rise.

dancook

Mr Sworld wrote:

dancook wrote:

I just bought a house with my girlfriend £31.5k deposit and £178.5k mortgage, I did some research and got a mortgage with Brittania, quite pleased! the mortgage payments are less then the rent that was on our 1 bed flat hah ..

How much research? What happens when interest rates start to rise again. I still remember the 15% interest rates of the 90's.

I really don't know what is going to happen to the housing market, people have given up saving for retirement and seem to assume that house prices will continue to rise.

I did quite a bit of research and when I finally decided on the fixed rate mortgage I desired, I ran it past an impartial financial advisor who agreed it was a good deal.

Wrath Rob

gtvlusso wrote:

You wait until you want to get a bigger house - lovely £8k of tax to pay!

I dream of 8k in tax. The current Wrath Towers was over £30k in stamp duty And that wasn't from a magic bank account that I myseriously found, that was an extra 30k on the mortgage.

I remember the Tories, when in opposition, claimed that if stamp duty had risen alongside inflation then the top rate would have been well over 1 million, not 500k, and wanted good old GB to raise the levels. So Mr Osbourne, time to sort it out and make with the raising of the levels! (Saying that I hope I don't move for another 7+ years!)

gbsahne001

I'm waiting for the 10% fall that people are predicting, although if it does happen then there is every chance that people wont want to sell

SimonAH

Three bedroom terrace with garden, garage and ENORMOUS detached workshop (triple car garage size) in a nice area of Cwmbran - 125K two months ago. Good nick too (even if I hate the kitchen and bathroom).

Took me five bloody months too.........

DonDaddyD

rjsterry wrote:

You'd be lucky to find someone offering a 90% loan-to-value mortgage these days, especially with property prices falling or static in large parts of the country. If they did, the interest rate would be very high. The chances of buying a £400K house as a first time buyer, even with a joint income of £120K, would be 50:50 at best I'd say. Once your on the ladder, it gets a lot easier.

I was only really using 10% deposit as an example....

But at a quick glance Natwest is offering first time buyers mortgages with 10% deposit. For a place around £200,000 and £20,000 deposit (so property for £220,000) the mortgage repayments are about £1,262 (35year mortgage).

I think £220,000 can get you property in Norbury, Thorton Heath and definantely parts of South East London.

DonDaddyD

Anywho Chapeau to the OP!

kurako

DonDaddyD wrote:

I think £220,000 can get you property in Norbury, Thorton Heath and definantely parts of South East London.

To paraphrase that old Groucho Marx line:

I wouldn't want to live any place where I can afford to buy property

asprilla

DonDaddyD wrote:

I was only really using 10% deposit as an example....

But at a quick glance Natwest is offering first time buyers mortgages with 10% deposit. For a place around £200,000 and £20,000 deposit (so property for £220,000) the mortgage repayments are about £1,262 (35year mortgage).

They have added 10 years to a standard mortgage though in order to achieve those figures.

DonDaddyD

We are an ageing population...

Aidy

I think it took me the best part of a year to find the place I ended up buying.

5 months is nothing.

badlydrunkboy

Good work OP. Nothing like the feeling of owning your own house. I bought my first place in june last year and got very very lucky with the mortgage/house. Paid £131k for the place (3bed terrace, 70' garden, brick shed, lovely area) because it was a repossession. Needed a lot of work doing but having spent about £5k doing it up, we've easily made it worth over £150. None of it would have been possible without my parents paying our 10% deposit though and my old man doing most of the work on the house.

Clever Pun

Thanks guys I've just been reminded how much tax I paid for my place

prawny

I have no idea how much tax I paid for my house 8)

It'll be paid for by the time I'm 46 unless we move. Which I can't see happening because now mrs prawny isn't working we can't afford this one :? Oh well.

The amounts you lot talk about for houses scare me seriously, DDD £1200 a month just for a mortgage that is insane. Ours is £630 and it's a real stretch on just my salary. If you're planning on having kids think very carefully before committiong yourself to that much. The wages in the smoke must be mental, funnily enough my company pays f-all for regular grunts like me in Londinium.