So I've got an agreed amount I can borrow for my first mortgage-any advice?!(3 Posts)
We're currently renting a house and have been offered much more than we want, which is good, but we're planning on using £30k less than they've offered (up to £230k) as once we have bought a house we want to start TTC (already have DSS from DH's first marriage).
So, we're looking at houses on Friday which are on at £220k, £215k and £199k. We don't want to pay more than £200k so how much do you 'discount' prices reasonably?
Also, what costs do I need to think of that will be unexpected? I've already thought of white goods and the like but haven't really got many others yet I'm sure they're there..... I have looked into the council tax bands though (oddly the largest house is in the lowest band as it's 2 mins up a country lane)....
Thank you in advance!
If you will be ttc, I assume you have made sure you can afford the mortgage payments on DH's salary alone? Don't mean to sound patronising, but we are selling because we always thought I would be working, but circumstances have changed that now. I would recommend that you restrict mortgage repayments to one third of DH's income only and then you are not overstretching yourself financially.
In terms of 'discounting' prices, it will depend on the house as to whether it is being marketed at a reasonable price or not so I think viewing houses up to 220k is entirely sensible. Just maybe do a bit of research on those you view above your budget first, get recent sales figures for that road for example (nethouseprices.com will give you this). Just so you are prepared before you fall in love with a house that is overbudget! And don't expect every seller to drop their price. We have found that there is such short supply of good houses that sellers are using that to their advantage.
Costs are predictable- solicitors fees, survey fees, removals fees and I assume you already know mortgage fees if you have an offer in principle.
HTH, good luck!
Yes the bank gave me all the legal fees amounts, it's just the removals I don't know.
The amount we pay off monthly for £200K would be under half of DH's salary and we know that without my salary (at all and with no child tax credits/maternity pay to make it up) we'd have to go without some optional extras, but we know it's possible. Plus he's a teacher so his pay will go up every year and he should go up 'bands' (he's training this year and everybody seems to want to employ him at a higher level so he's likely to get promoted quickly).
We're also keeping at least £5k from our savings as a 'buffer zone' and are hoping that unless we have unexpected disasters, when we're both paid we'll have £600 left over every month which we might use to pay off more of the mortgage so we can have a break if we need it when babies arrive (or just get the payments down).
That's why we only want £200k max as we don't do stretching and we want to know we won't be having to move again if we have children (especially since we're getting a 3 bed when currently we only need 2)!
The estate agents seem to think people will 'accept' less and the £220k house he said they 'definitely would'. I feel so cheeky asking but I know it's the system. The £199k house would mean we're definitely below our limit so I know that's why I'm being drawn to it but, I might like the others more when I see them!!
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