First Time Buyers who purchased a house within the last 5 years.....? (or any experts with good advice!)

[Summersun111]

Hi all,

I am after some advice and/or personal experiences please.

I am hoping to purchase a new house next year (looking to purchase in 9-12 months) with my partner. We are desperately trying to save 20% deposit to try and reduce the monthly mortgage payments (lots and lots of skimping and daily saving)

We aim to purchase a house estimated value £230,000 , deposit £46,000 and joint income of £50,000. No DC and/or pets or credit cards/car loans/debts. Do you think this seems reasonable or do you think we may be biting more than we can chew?

If you don't mind me asking, what was the value of your house, deposit and monthly payments? (I guess salary would also be useful) It would be interesting/inspiring to hear some real life stories. I have used mortgage calculators which also help and I am currently researching mortgage advisors for us to seek further advice. I live north west england- any recommendations are welcomed!

(Just to add looking for a long mortgage agreement of 33-34 years)

I bought a flat a year ago for a £116000 - my deposit was 10% and I earn approx 27,000.

For me the most important thing is how much will your monthly payments be and can you afford that? My mortgage was less than rent and whilst my job is secure the monthly payments would be doable on a much lower income though my standard of living would drop in due course.

The other thing to think about is interest payments interest is low at the moment but could increase in due course if it does could you afford the increase to monthly payments?

Try the intermediary calculators to see what each bank / building society would offer

We bought a house for £135k this year, only a 5% Deposit, joint income of £50k basic, £60k if include overtime and we do have car loans and credit cards. Pay £605 per month as the rate was slightly higher due to the low deposit - but it’s still less than renting a house like this would be

We bought at house for 225 with a 20% deposit last year with our income being similar to yours. Been fine so far, but like you we have no debts, have other savings, no car payments etc. Doesn’t worry me much if I go part time in future but realistically I’d have to do at least 3 days.

It was doubling my mortgage from our last house but hasn’t concerned me as I think it’s a house type in a good area where similar houses are in short supply (so value will rise in long term). Monthly payment is about 680.

Also to mention this is intended to be a long term purchase, not a ‘move up in five years’ house, so the upcoming chatter about economic troubles re: brexit doesn’t worry me too much. I would have been more reticent if it was a smaller property and I thought I might have to move up the ladder soon, we would be more vulnerable if that’s the case.

We got ours on the right to buy scheme 2 years ago.
House price £127k
Our deposit 5%
The government paid the other 15% (we obviously pay this back or it's deducted from the value of the house when we sell)
We pay £330 p/m
Interest rate about 1.5% (fixed for 2 years)

If you go on rightmove there is a mortgage calculator when you look at the houses, find out what interest rate you are likely to get with your LTV and see what your payments will be and how it compares to your rent now. You just might want to be mindful of if you are planning children and career breaks etc.

Have you looked to see how much difference going to 20% will actually make? We bought a couple of years back and we had enough savings to just about get 20% if needed, but it wasn't going to make a huge difference. That was with a mortgage of about 50k less than yours would be, granted, but I'm not sure it would've made that much difference even with the extra. We did go through a broker though. Worth doing.

When you're actually going for it her a mortgage broker. Worth their weight in gold! Ours got ya deals from the same banks we'd approached that they hadn't offered online or I store and we were able to get a mortgage in principle for £30k more than in store too.

Our house was £150k and we had a 10% deposit. We pay back £510 a month at the moment, it was a two year fix so goes up in June next year and it was a 35 year mortgage iirc. We plan to move next summer though.

We were working with very similar figures to you. Our house was £190k, we'd saved 40k deposit but kept some back to do work, so mortgage was £157k over 32 years. Our repayments were £575 a month on a 2 year fixed deal. We are just coming to the end of the term and have got a slightly better deal making the repayments about £550 a month. We've been over paying quite a bit and if we carry on as we are we have 18 years left.
I agree you need to see a mortgage advisor who will get you the best deal.

We're in the process of buying a house now. Our household income is £66k and we saved 11k in 9 months so I would think what your wanting to achieve is definitely possible. We have no debts or children just a cat and a dog. We're doing a 5% deposit

We were also spending a lot of money on other things and have high out goings so if your really strict you could easily achieve more than we did