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Original poster

First time buyers in this current climate!

9 replies

sleepythedwarf · 24/09/2022 00:26

Just looking for a bit of advice as I'm clueless and can't work out what to do for the best.

I live in a cheap to buy area of the country and rent a large four bed detached house for £850 a month including council tax (the landlord pays this)

Our rented house is probably worth around 250k and we are looking to buy our first home for around 180k (40k deposit and 140k mortgage)

All this talk to recession and huge mortgage payments with the increase in interest rates are freaking me out though.

I don't want to be in a position where we buy then prices drop and we in effect lose our deposit compared to waiting six months and hopefully buying cheaper?

Obviously the £850 rent every month is money down the drain as it pays off someone else's mortgage but it is still not a massive amount for the kind of house we rent.

Anyone with a crystal ball want to tell me if we are better buying ASAP Or trying to hold off a bit?

OP posts:
brownwhisker · 24/09/2022 00:29

If I were you I would be buying now. Before interest rates getting any higher and you can still get a reasonable fixed mortgage rate. Whilst the stamp duty is being lowered.

foreverhome2023 · 24/09/2022 00:47

Same here OP. I'm a ftb, although I'm buying alone but I do have a healthy deposit. I've been trying to get on the ladder for the last 2 years. I found a perfect flat last year but it was deemed unmortgageable 3 months into the process, then prices shot up. I was outbid twice early this year (one of them fell through 2 months later and they contacted me but I decided against it), now the market has slowed right down in my area. Properties still overpriced but just sitting there for weeks/months with no interest. I've decided to hold off and wait until next year which I know is a gamble, but I really do believe prices will come down, they have to and I'll be pissed if I overpay. Only you can decide what you want to do, but I think a lot of people are waiting it out. Good luck

happyfishcoco · 24/09/2022 02:04

If I were you I would be buying now.

140K mortgage with 4% (which is now) is just £740 per month

and your place is really really low price.
£800 in London zone2 just can rent a room in a share house, with a share toilet and kitchen. 😵

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General money
lannistunut · 24/09/2022 02:10

I would just plod on, personally.

tomsmithwrinch · 27/10/2022 17:31

To be honest, I'd think about buying sooner - the price that you stated seems really reasonable given the circumstances. If you are worried about recessions etc but still want to get a foot onto the property ladder, I'd really recommend going with the property software service MaryR. My friends were in the same situation as you and all decided to buy a house together instead (after all, a problem shared is a problem halved etc etc). Anyway, they used MaryR and it helped them to buy together but own individually. It basically enabled them to track uneven contributions to the house (different amounts were put in per person etc), and helped everyone track their own portion whilst also building individual equity on the property according to what they put in. They said it was really simple, and if it helps, here's a link to their website: www.maryr.co/
Also, if you want updates on the current housing situ, would also recommend signing up their newsletter here: mailchi.mp/4ff0a0cd185b/howtobuyahome
Good luck!

YaffleYaffle · 27/10/2022 17:41

We’re just starting to look now (weren’t ready before) and it feels insane but it’s never the perfect time!

Had some nice replies on my thread here that might help

YaffleYaffle · 27/10/2022 17:43

In our case we are in a more expensive area but want to stay (we’re near both our families and our lives are here). We’re looking at £300-350k for a 3-bed, with a £75k deposit.

Kennykenkencat · 14/03/2023 13:04

It depends how long you want to live there for,

Effectively you will only “lose” your deposit if you sell for less than you paid.
If you are buying a family home that you aren’t going to sell for a few years then it is immaterial if in a few months your house is valued at less than you paid. As long as you are comfortable with the mortgage repayments then it doesn’t actually affect you until you sell and hopefully in a few years the outlook will be brighter and the equity will have built up in your house to move on up to the next level.

Kennykenkencat · 14/03/2023 13:13

foreverhome2023 · 24/09/2022 00:47

Same here OP. I'm a ftb, although I'm buying alone but I do have a healthy deposit. I've been trying to get on the ladder for the last 2 years. I found a perfect flat last year but it was deemed unmortgageable 3 months into the process, then prices shot up. I was outbid twice early this year (one of them fell through 2 months later and they contacted me but I decided against it), now the market has slowed right down in my area. Properties still overpriced but just sitting there for weeks/months with no interest. I've decided to hold off and wait until next year which I know is a gamble, but I really do believe prices will come down, they have to and I'll be pissed if I overpay. Only you can decide what you want to do, but I think a lot of people are waiting it out. Good luck

Ultimately prices overall don’t ever come down

And even if they do then to buy the next level up will come down more and cost you less.

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