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First Time Buyer no idea what to do

(2 Posts)
YourNewspaperIsShit Sun 31-Jul-16 18:38:42

I only barely understand mortgages after endless Googling, all the calculators want to know how long we want the mortgage for and how much the property is but we don't have a clue. We haven't chosen anywhere as we don't know what price range we're looking at.

Where do we get advice from? Just doing it off one salary, it's a decent enough wage for our area (£30k after tax) and property is reasonably priced here too (average semi 3 bed is £80kish).

Neither of us are good with money and we're worried the houses on offer are all worse than the one we're renting (£450pcm) but we want to do home improvements now as there's big purchases like flooring and doing up a big garden, redoing the bathroom that we don't see the point wasting money on.

Also is now a good or bad time to buy? Because I know whatever we buy won't be big enough in the long run. We have about £10k deposit and could save up more pretty quickly but in general DP's salary is unlikely to ever increase (no prospects of moving up in the industry).

Drquin Sun 31-Jul-16 18:51:34

Ok, various ways to work out affordability. There's online tools. Find one you like, you'll have to guesstimate some bills as they'll be different.

But simplistically, you need to think of the loan-to-value amount. Simplistically, you've got an 80k value, with 70k loan - assuming the 10k deposit. That gives you LTV of 87.5%. The higher a LTV, the better a mortgage interest you get (simplistically).
But a mortgage calculator suggests a 70k mortgage, repaid over 25 years, at 3.92% is £366 per month.
Variables will be .... Mortgage amount, interest rates, repayment period. Bear in mind legal fees etc

What other bills / standard of living do you have to support from that one salary?

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