First time buyer - how much money do I need saved up?

[crazzzzycat]

Hi!

We are planning to buy our first property next year. We currently rent and our lease will end in October 2014 which would be a perfect time for us to move into the catchment area of the school we want our son to go to as that will be when we need to apply.

I want to take advantage of the new Govt scheme coming out in January which will enable us to buy with a 5% deposit.

Looking at houses on the market around here we figure we are looking at properties around £230,000.

So a 5% deposit would be £11,500.

How much on top of that would we need for stamp duty and legals? Should we be aiming for a pot of around £15,000? This is achievable I think. We will have £5k saved by Christmas (which has only taken around 3 months) so £15k by next October isn't overly daunting. Obviously we will aim for more if possible!

There are a couple of complications the biggest of which is my husband is a discharged bankrupt. We have no financial links whatsoever and my credit rating is exemplary. The mortgage would be solely in my name (my income is high enough). What issues might this cause, if any? Will they query why it is to be me only when we are married?

Secondly - what do we all think of the govt scheme? Is it risky for us in any way? I don't think we could afford to buy without utilising it.

Thirdly - when should we start looking and at properties on the market for what price? Up to £250k? How long does it take on average to complete a sale from making an offer (I appreciate this is a how long is a piece of string question!!). My parents think 3 months so to start seriously looking around July time. We will obviously need to continue saving until the last minute.

Anyway lots of questions there! As you can tell I am a total newbie. Husband isn't (he was a property developer which is why he went bankrupt in the crash.......!!) but I want to understand this all for myself seeing as it will be me doing the purchasing!!!

Thank you :-)

2 mins on the internet told me that your stamp duty will be £2300. Budget about £1000 for legals (solicitor fee and searches). Another few hundred for a survey. Any removal costs.

you also want to have a few months savings behind you in case of job loss.

start looking in spring, if the ideal property comes up you can always negotiate if you don't want to move immediately. But start researching now to see what is around and what you get for your money.

BTW if you can, arrange a slight overlap between completion and vacating your rental, makes things easier.

How long ago was he made bankrupt?

Also, are there any criteria for using the government scheme?

I think new build prices will shoot up next year because a lot of people will want to use the scheme meaning more buyers than new build properties available.

deposit
+
1000+ solicitor
100 bank charges (for moving the money around quickly)
500 survey
300 professional clean incl. carpets (best money ever spent!)
100 mail redirection
300+ buildings and contents insurance

new furniture, curtains, light fittings, washing mashine...

If you can possibly, possibly avoid one of Gideon Osbourne's daft schemes, do so.
They are dangerous and reinflating the unaffordability of houses

Discharged from bankruptcy Nov 2012. There is no way I am getting a mortgage with him and linking our credit files. NO WAY. My credit file is excellent.

I think you are linked simply by bring married and living in the same place. It may be worth talking to your bank and finding out.

As for how long when I bought my first house there was no chain so should have been very quick but took 6 months. Second time took 10 weeks. I would give yourself 4 months, if the sale is progressing quicker than you'd like you can usually stall a couple of weeks.

No, that is not how it works "thatsinteresting". We have no financial links whatsoever. You have to have had a joint account, joint creditcard/loan or mortgage to have linked finances.

Thanks for the info re times - that is v helpful.