Advice on first property purchase

[SpoonBaloon]

I am considering buying my first property but not sure if it is possible.

I am single and an average earner, earning around 37k a year. But I have around 150k in total in savings and investments.

I think I would be able to commit to a deposit of up to £130k, which I feel would be a substantial percentage of the property value. But I feel I am being held back by my low salary and would only be able to take out a small mortgage, which limits my options.

I would be looking to buy in a nice-enough area somewhere around Manchester, Stockport or Cheshire.

Is anyone able to suggest areas where this would be do-able? Or is it a total pipe dream? If so, what salary do you feel I would need to earn in order to achieve this dream?

Have you used one of the online mortgage calculators to work out what you could borrow?

I’ve no idea of house prices in those areas. Or your other debts/commitments. Or your age and therefore the term of mortgage you’d be looking for. A mortgage calculator will take these into consideration and show you what you could borrow.

Sounds like you’d be able to purchase a property in those areas with such a big deposit. Work out what amount you’re comfortable paying per month in repayments and look at houses to that value. You’re in the north and have a big deposit so in a much better position than many.

Use a mortgage calculator to see how much you can borrow and consider fixing your rate if you want certainty about monthly commitments. It’s a buyer’s market, in most places and as a first time buyer (nothing to sell) you are in a strong position, so negotiate hard on the price. You need an experienced friend, colleague or relative to talk it through with though, first time around. It’s good to have a sounding board, so ask someone you trust to view places with you. Exciting! Best thing I ever did.

It's all relative. £130k could buy my house outright and still leave you with a big chunk of change. For my sister in Cheshire it would be a 30% deposit.

How much you can borrow isn't just about how much you earn either but how long you plan to pay it back.

Crunch some numbers and see how much you can borrow.

Do an agreement in principle on the Barclays website to get an idea of what you could borrow. I do them all the time whenever my salary goes up.

Contact Town and Country to see what you could loan and what deals there are. I think you will be able to buy.

Then look about in that price range. But do keep some savings.

How exciting!

https://www.landc.co.uk/?ICID=PPCbrand&igaag=176184900213&igaat=&igacm=963150401&igacr=779972844622&igakw=l%26c%20mortgage&igamt=p&igant=g&gad_source=1&gad_campaignid=963150401&gbraid=0AAAAADlv3pqKDkub1mXnavelVK0eoyTSP&gclid=EAIaIQobChMI_bH2kpjqkAMVE5JQBh0JHSAKEAAYASAAEgIeW_D_BwE

L&c have eligibility calculators. You are in a very good position with the loan to value being so low you should be able to secure good deal on any mortgage.

Use Area360 on RM and it's Area Profile function in order to "test" what areas appear nice in the stats and how much different property types are (and whether they are heading up or down in price).