...ok, so I have found a small 2 bed semi detatched house I like. It's in a very cheap area of Somerset, so not that expensive. Circa £100,000

 

Now, I'm not earning a huge amount at the moment, but desperately want to get on the property ladder before the time I'm 30. Sounds very daft but that's me.

 

My plan is as follows, to get a 2 bed house and have a lodger so I can afford repayments. So I am trying to find the very cheapest way of monthly repayments.

 

So, to start off with, with a very small downpayment, I'd start off with an interest only mortgage over say, 40 years....some places are now doing 50. This, although not ideal will get me started. Once my circumstances change then I can change things, but that's not what is on my mind.

 

I know zero about mortgages and such like and the depth of my knowledge goes as far as the very basics of shared equity.

 

If anyone can shed light on things and advise a first time buyer on tricks of the trade, then please reply. Please don't scare me too much.

 

Thanks :(

 

Si

Si, increasing the term on an interest only mortgage will not lower the repayments as I understand it - only increase the total amount payable :( Have you had a mortgage offer yet?

 

Steve :)

No not yet. I'm guessing an interest only mortgage will be circa £350 with £550 being a full mortgage...over around 30 years.

 

The whole thing is scaring me and giving me knightmares and I've not even begun to start. Lame isn't it.

 

Just trying to figure out monthly how I am going to cope with it....

go and see a mortgage adviser, thats what i did and i was on the ladder in no time and only cost me about a grand in fees, you may not get a mortgage for that much depending on your circumstances

 

me and our lass was bringing in 30 grand between us and we only managed to get a moprtgage of about 97000 (not that i needed that much)

 

remeber if you get a lodger to get them on a six month short hold tenancy otherwise you will never be able to get them out of your house

my motgage repayment on a 79000 loan is 480 a month and that is with insurance

 

that is one tip i can give you get insured upto the hilt

me and our lass was bringing in 30 grand between us and we only managed to get a moprtgage of about 97000 (not that i needed that much)

 

On that basis then I'll never ever get a mortgage. Gutted. :(

Useful mortgage payment calculator here. I've been with UCB (self cert) for about 6 years and they are pretty good if you have no proof of income or want to borrow more than the high street will offer you...

 

HTH

 

Steve :)

Useful mortgage payment calculator here. I've been with UCB (self cert) for about 6 years and they are pretty good if you have no proof of income or want to borrow more than the high street will offer you...

 

HTH

 

Steve :)

 

I don't really understand how to use that. Baring in mind I know almost nothing about the current interest rates etc.

On that basis then I'll never ever get a mortgage. Gutted. :(

try getting a flat, maybe cheaper, but be carefull if buying a flat from the council, cause if there is still council tennants in thge council are still obliged to keep up the maintinence on the outside of the property, so they do all the repairs and you get a huge bill for your part in the repairs

try getting a flat, maybe cheaper, but be carefull if buying a flat from the council, cause if there is still council tennants in thge council are still obliged to keep up the maintinence on the outside of the property, so they do all the repairs and you get a huge bill for your part in the repairs

 

Flats are going for more than small houses now. So I'll have even less chance.

Flats are going for more than small houses now. So I'll have even less chance.

if you are handy you could do what im doing buy a house that needs a lot of work doing (and get it cheap) that way when its done its worth a lot more

if you are handy you could do what im doing buy a house that needs a lot of work doing (and get it cheap) that way when its done its worth a lot more

 

Unfortunately I'm not. I can redo interior stuff, but anything structural (which is where big money gets knocked off) then I'm on the bones of my bum again.

doesnt have to be structural to save money, i got a semi detached house on a council estate (but surrounded by private homes) for 73000, it needs a lot of interior work like rewire, heating skimming of the walls new doors and so on, but the outside is and strucural is fine, and ive seen the same house round the corner from me go for just under the 100k mark and it wasnt even done to a high standard like mine will be when done

 

and ive also scored cause the two schools on the estate (just up the road from my house) have been voted the best primary schools again, and young familys are snapping the houses up to get the kids in these schools (ching ching)

Well I don't want to move somewhere where I don't want to. The whole point of me buying this place is to live, not to earn money from it or sell it or whatever. It moves me half an hour closer to work, it's near friends, and I'm not really going to find anywhere cheaper.

Well I don't want to move somewhere where I don't want to. The whole point of me buying this place is to live, not to earn money from it or sell it or whatever. It moves me half an hour closer to work, it's near friends, and I'm not really going to find anywhere cheaper.

i have no intentions of moving i love it where i live, but its good to know that im always going to be in posotive equity

housing is in crisis in the UK....if'd they'd only release some more land or give planning permission to build the whole situation would ease...according to the land registry we live on only 10% of the land in the UK whereas the continent use about 15%-18%....and incredibly 50% of all land has never been sold on the open market or even registered...just passed down the family line

its no surprise housing is so expensive when land is in short supply....anyway good luck with whatever you do

....anyway good luck with whatever you do

 

Well, nothing it would appear. :(

I just don't understand how anyone can realisitcally afford a house these days.

I just don't understand how anyone can realisitcally afford a house these days.

 

you could have a look at new developments - they're now required to offer a percentage of 'affordable housing', which usually means a housing association will own 25%... worth a look - there's some good deals to be had where i live (chester) which is horrendous for house prices!

 

As for a mortgage, i got mine through a broker at an estate agents (for free) see a few and get an idea of who's offering you a good deal. The reason it's free is the finding broker receives a flat fee from the lender (which is shown to you in black and white before you proceed) so it's not a con.

 

Nothing to lose by seeing a few local to you.

 

Rich

I don't really understand how to use that. Baring in mind I know almost nothing about the current interest rates etc.

 

Some of the better current offers can be found here for the sake of calculations. It's really not that daunting Si - I'm sure you'll be able to get something sorted bud!

 

Steve :)

Thanks to everyone for the replies.

 

Cheers Steve. I'll have a butchers. Still finding it pretty daunting. Just so scared about the true expense of it all. Perhaps I'm just a little nieve, but want to be able to 'live' as it were.

It's a bloody struggle most of the time mate, that's why I work 2 jobs but it's the best thing I've ever done and my only regret is I wish I'd done it sooner. My house has gone up 22k in the 10 months I've owned it, it's just bloody crazy!

Yep...Two years into a mortgage now and FTB, And yes the payments are very high, but had to start sooner or later...

 

First thing I'd advise is to go and see an INDEPENDANT financial advisor, as when you go through an Estate agency they will often be connected to a specific selection of lenders that may not be the most suitable for your needs, the financial advisor should be able to guide you to the payment plan most suited to your requirements, a good advisor should leave you understanding the jargon and various mortgages on offer ;)

 

Also try looking into ex-council/ ex-MOD housing in your area, this is often cheaper, shared ownership with housing association is also worth looking into.

 

If you are buying in some areas now, know that some houses under certain price brackets will be stamp-duty exempt, allowing you more money towards a deposit...A good deposit will also get you the lower interest mortgages, although some will lend 100% to A FTB the interest tends to be higher.

 

Wish you all the best in your search and hope all goes well ;) :D

No not yet. I'm guessing an interest only mortgage will be circa £350 with £550 being a full mortgage...over around 30 years.

 

The whole thing is scaring me and giving me knightmares and I've not even begun to start. Lame isn't it.

 

Just trying to figure out monthly how I am going to cope with it....

 

I'd get an interest only mortgage, then in a few years release some of the equity & buy another house to rent. You'll pay off your house much quicker that way because you'll have 2 going up in value.

 

It worked for me anyhow :)

I got my mortgage sorted out by a guy called Dean Kenyon at Premier Mortgage Centre North Uk, based in Sheffield. I never had to leave the house, not even to sign the final documentation to release the money (ok had to make trips to post office but thats all). Completely free advice with no pressure at all. If you wish to contact him the number is 0870 7652032, he is that good he even gave me his mobile number to ring if i had any questions, any time, even while his wife was in hospital!

Well, I can't even get a mortgage for any house. Offers are just pathetic. Getting me ****ing depressed now.