First time buyers advice

[Pele_Is_God]

Really need some advice. Was looking into renting somewhere but decided against it It's too expensive. I am 23 next month and I've started saving for a deposit. My question is most mortgage lenders look for 10% deposit right so roughly 10,000 grand which scares me a bit. Just looking for some guidance on this, what age did people on here buy their first property? I am aware of these shared equity schemes but not keen on the area's.

 

Any info/advice is much appreciated cheers.

[jambo 71]

Really need some advice. Was looking into renting somewhere but decided against it It's too expensive. I am 23 next month and I've started saving for a deposit. My question is most mortgage lenders look for 10% deposit right so roughly 10,000 grand which scares me a bit. Just looking for some guidance on this, what age did people on here buy their first property? I am aware of these shared equity schemes but not keen on the area's.

 

Any info/advice is much appreciated cheers.

 

send John Mitchell (resident mortgage advisor) a PM he'll answer any questions you have

[The Brow]

The two things you should consider are

 

- how long will it take you to save 10k

- where can you buy for ?100k that you wont mind living for a few years

 

Personally, I got a decent deal on a flat when I was about 20 and have only just sold it 8 years later, making double what I paid for it. I rented in Edinburgh for about a year and the prices are pretty steep, but, its better than living with your mum and dad until your late 20s/early 30s which I think is more than a little strange. I dont mind renting as it means I can always bugger off to another country without the hassle of being landlord again and making sure I always have tenants to pay the bills.

 

I think everyone should have at least one year when they live with their mates and kick the arse out of it.

[Pele_Is_God]

I reckon 4 years to save up ?10,000. unless I move up further in the NHS of course and I can save more. Renting just doesn't appeal to me.

[Jam Tarts 1874]

I reckon 4 years to save up ?10,000. unless I move up further in the NHS of course and I can save more. Renting just doesn't appeal to me.

 

 

Renting gives you flexibility and mobility which you might well need given the swingeing tory cuts.

[Peebo]

Not had an Edinburgh property buying thread for a while...whatever happened to those 30-40% price drops we were promised?

[wibble]

Not had an Edinburgh property buying thread for a while...whatever happened to those 30-40% price drops we were promised?

 

The swingeing tory cuts should create a few buying opportunities when first time buyers from the last 4 yrs get made redundant and can't pay the mortgage.

 

Not that many people have lost jobs yet, mostly because of the upcoming election. Now that is out of the way - let the fun begin.

[Sten Guns]

Out with the Governments own shared equity scheme, a lot of new builds offer shared equity on their developments, giving you flexibility on your choice of area.

 

Look up Cala Homes, Miller Homes, Taylor Wimpey and Red Row.

 

They will give you an interest free loan of 20% of the property cost for 10 years. Throw in as little as 5% yourself, and your on the ladder.

 

This scheme isn?t means tested, there is no 3 month application etc. Its very straightforward.

 

Another plus to the new build with shared equity is that they put you in touch with their own mortgage advisors and appoint a solicitor for you too. The whole process was very easy and pain free. Not what i expected. I even haggled for Miller Homes to pay my stamp duty and legal fee's. Perfect.

 

Also I spoke to John Mitchell about a year ago, he was very helpful.

[stevie]

Bought my first house in Sighthill when i was 25(17 years ago),my only regret was not borrowing the maximum amount the lender was offering me.I paid ?39,000 for an upper villa but could have bought a far bigger house had i borrowed the ?53,000 that was offered.Dont be scared to borrow the maximum amount you are offered.

[cuthy2k]

same boat as the OP.

 

Wanted to buy with the gf but the depost is a no go if you dont have rich parents behind you. Me, I need at least a ?15k deposit (sorry, i dont want to live in a crappy area so prices are a bit more!). Now, where can someone aged 25 get a ?15k deposit from without the robbing a bank and not staying with parents (who at 25 wants to do that!?). Even putting away a modest ?250 a month would take years - and where do you live in the process?!

 

It seems that only in the UK is house ownership a priority. In mainland EUrope, the majority of properties are rented. Also, renting gives you much more flexability as already said. I just went to South Africa for a couple of months with work - with a mortgage that would have given me a major headache as would need to find tenants etc.

 

Personally, i dont think i will get on the ladder before i am 30, if not 35. Better to move abroad and get a cheaper but nicer house in a country you fancy living in to be honest!!! at least thats my plans!

[Sten Guns]

same boat as the OP.

 

Wanted to buy with the gf but the depost is a no go if you dont have rich parents behind you. Me, I need at least a ?15k deposit (sorry, i dont want to live in a crappy area so prices are a bit more!). Now, where can someone aged 25 get a ?15k deposit from without the robbing a bank and not staying with parents (who at 25 wants to do that!?). Even putting away a modest ?250 a month would take years - and where do you live in the process?!

 

It seems that only in the UK is house ownership a priority. In mainland EUrope, the majority of properties are rented. Also, renting gives you much more flexability as already said. I just went to South Africa for a couple of months with work - with a mortgage that would have given me a major headache as would need to find tenants etc.

 

Personally, i dont think i will get on the ladder before i am 30, if not 35. Better to move abroad and get a cheaper but nicer house in a country you fancy living in to be honest!!! at least thats my plans!

 

You wouldn?t necessarily need 15k mate.

 

Take a new build for example, in a decent area like Millers Homes, Bonnington.

 

http://www.millerhomes.co.uk/explore/scotlandeast/10763/index.htm

 

2 bedroom apartment - ?169,000.

 

Take on their offer of 20% Shared Equity - means they give you ?33,800 towards your mortgage deposit.

 

Remaining balance to be mortgaged - ?135,200.

 

Halifax are insisting on a minimum of 5% deposit of what you are requiring if you are taking on a shared equity deal. (They were when I bought 6 months ago).

 

5% of ?135,200 is ?6760.

 

If you?re buying with the misses, that?s ?3380 each for the deposit.

 

A lot less than the 15k your talking about isn?t it........

 

 

SG

[Only a Game]

Shared equity is definitely the way to go for the OP.

You should look into it and see if you fall into the earning bracket required.

 

My stepdaughter is in the final stages of buying her first flat this way. Just waiting for the keys really. Fabulous 2 bedroom new build down Restalrig way. She wouldnt have been able to do it without a shared equity deal (The local government one) Her deposit was around the 5k mark

 

Ive got the number of a financial adviser who knows all about this scheme and there are still places left this year, but you need to be quick because more and more people are doing this and they'll cut it off once they reach a certain level.

 

If you need the number gimme a shout.

[Munch]

Really need some advice. Was looking into renting somewhere but decided against it It's too expensive. I am 23 next month and I've started saving for a deposit. My question is most mortgage lenders look for 10% deposit right so roughly 10,000 grand which scares me a bit. Just looking for some guidance on this, what age did people on here buy their first property? I am aware of these shared equity schemes but not keen on the area's.

 

Any info/advice is much appreciated cheers.

 

 

 

There is a new scheme that seems to be targeted at first time buyers with your problem, it is Called " Rent to Buy " the landlord that has properties in this scheme allows the renter to rent the house for an initial period you agree a price to buy the house/flat at the begining of the contract you initially rent the flat at an agreed price, you then overpay the rent for an agreed price until you have built up your deposit, the house/flat is then sold to you with the landlord gifting you the deposit that you have already paid.

In the mean time you can do whatever you like to the house/flat to improve it to make it your home.

As the price is agreed at the outset you would be the one to benefit from what you do to the flat to increase its value.

Its all done by lawyers and seems to be working well if you want to know more pm me.

 

Cheers

[Carl Weathers]

I'm currently saving up for a place. Putting a fair bit away each month but will still take another 12 months at least to get together a reasonable deposit (?10-?12k).

 

I'm looking at a one bedroom flat in an area like Dalry, Polworth or possibly even somewhere in Leith! Luckily my Dad is a tradesman and can help in getting it kitted out.

 

Wish I did this a few years ago rather than pissing all my cash down the drain...!

[jvm32]

Shared equity is definitely the way to go for the OP.

You should look into it and see if you fall into the earning bracket required.

 

My stepdaughter is in the final stages of buying her first flat this way. Just waiting for the keys really. Fabulous 2 bedroom new build down Restalrig way. She wouldnt have been able to do it without a shared equity deal (The local government one) Her deposit was around the 5k mark

 

Ive got the number of a financial adviser who knows all about this scheme and there are still places left this year, but you need to be quick because more and more people are doing this and they'll cut it off once they reach a certain level.

 

If you need the number gimme a shout.

 

I've recently been looking in to buying a house and was going to be using the government shared equity scheme to assist me (LIFT), however my mate who is a financial adviser has informed me the money made available for this current tax year was slashed by the government (from ?60m to ?20m), and it had all pretty much been allocated already. My initial enquiries were at the back end of last year, and I was informed unless you had a completed applciation form in before the end of last year there was no chance of you getting in the scheme this year.

 

The financial adviser you are referring to seems to be under a different impression though, which is good, any chance of firing his number over my way?

 

Cheers.

[The Old Tolbooth]

I've recently been looking in to buying a house and was going to be using the government shared equity scheme to assist me (LIFT), however my mate who is a financial adviser has informed me the money made available for this current tax year was slashed by the government (from ?60m to ?20m), and it had all pretty much been allocated already. My initial enquiries were at the back end of last year, and I was informed unless you had a completed applciation form in before the end of last year there was no chance of you getting in the scheme this year.

 

The financial adviser you are referring to seems to be under a different impression though, which is good, any chance of firing his number over my way?

 

Cheers.

I don't want to burst your bubble in any way mate, but if the allocated funding has ran out for this calendar year already, then there's not much any financial advisor will be able to do unfortunately. I know it's not what you want to hear but I've got clients waiting in the wings for next years funding already, and also got some clients who are successfully going ahead with it this year, but not many if truth be told.

 

In my opinion, more money should be made available for the shared equity scheme to help to get people who want to get onto the property ladder for the first time and by cutting the funding this is a major negative for these types of people.

 

Apologies for not really noticing this thread quicker too, but I'm off duty this week as I get married tomorrow

 

If anyone is looking for advice then send me a PM, but I probably wont be able to look at it until after the 23rd of July as we're on honeymoon.

[jvm32]

Thats what I was expecting, as I said my mate told me that previouslly there was no chance of getting it this year, but just OAG seemed to think there was still places left this year, so I thought it would be worth having a look.

 

Could be he is talking about a different scheme though (perhaps the shared ownership oppertunities rather than the LINK shared equity scheme).

 

Also, I'm not in any particular hurry to buy at house at present anyway, just saving as much as possible for a deposit, give it another year or so and I should have enough for a 10% deposit for a house within my price range so may not even need the shared equity option.

[future is maroon]

I know lots of people in same position as op (I'm sure we all do)

 

Say you do get a house for 100k and get the 10k deposit that seems to be the easier part as from there it's the mortage payments, council tax, gas/electric, food and clothes and if you are lucky to have money left maybe still be able to go to the hearts games. (even then 100k seems to be at the lower end of the property market)

 

Catch 22 as if you rent then it's pretty much risk free as you can walk away and end of the lease but money being used for rent is using up money on a mortage or using to save up for a deposit. If you do rent then all your money will be used on bills etc so no chance of ever getting a deposit.

 

For couples it will be a whole lot easier but for single people then renting seems to be the only way.

[Pele_Is_God]

Thanks everyone for their advice. Renting seems the best option for me, will just have to be patient for something decent to come up within my 400pcm budget haha! Also I didn't know I get 25% off council tax if im single occupant, which takes some money off!