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| *Ostroff, Fair and Company>>>Renting & Real Estate |
Saving for a house? |
My boy and I are starting to save for our first house. We'll probably be looking for a mortage of 拢180,000 - 拢200,000. We are aiming to save 拢1,000 between us each month. How much will we need to save? When should we start seeking help and get ready to think about areas etc? We think we will have to either sacrifice a garden or decent area, which is better? save around 10% deposit or more,go with a decent area Put down 20% of the price. Then get a nice place with a garden and garage for the Jaguar. if you can afford 1000 MONTH why not put it to good use and pay a mortgage with it. the quicker you get on the property ladder the better. think about areas now. think about your work, transport, do you drive, parking areas you want to live in, gardens for drying clothes as well as a place to enjoy good weather. it is never too soon to start looking at properties in estate agents it will give you an idea of price, go and view some it will give you an idea of how far your money will go. happy house hunting. be quick. You will never save money as quickly as the housing market is rising in England. Go and see a mortgage advisor NOW! you can visit one at and estate agent, and they will generally look at the whole market, or a large portion of the market. They will tell you how much you can borrow, and what it will cost you. They do not charge, and there is no pressure to take anything out with them. If you have no deposit, you may have to pay a Higher Lending Charge, for people who are borrowing more than 90-95% of their home's value. This is like insurance for the lender to make sure they will recoup their investment if you cannot afford the repayments. Also the higher % of your home's value you borrow, the higher your interest rate will be. If you have around a 5% deposit, most lenders will be happy to take you with no HLC, so you may be in a better position if you have around 拢10,000 to put down. But seriously, go see someone that makes their living giving advice to Borrowers just like you. i'm in the same boat we're saving 拢1000 a month each, so we should be able to get a good mortgage, however we have been saving for 3 years and renting at the same time, but we want to put downs a big a deposit as possible as we want low repayments. But 10% is usually the average. I think it would be best to wait until you actually have some money to work with, no point getting the ball rolling if all you've got between you is 拢5000, not gonna get anything with that. Don't forget you'll need extra for solicitors fees, stamp duty etc etc. hey there..im doing the same thing but on my own. would pay off as much debt as poss first then save 5k for the fees and legal stuff....then start saving for the deposit....really try and be good with money, overtime and value range. its hard but your be so happy when you get your new place!! good luck!!! My first port of call would be to contact all the new developments in your area and see what special deals they are offering first time buyers.In my area(Lincolnshire) they are offering to pay the 5% deposit,stamp duty and carpets and curtains.If you are looking to spend about 拢200k on a property privately (through an agent) you will need at least 拢20k to cover deposit,stamp duty,solicitors,valuation fee for mortgage and survey if you buy an older house.Stay away from flats as they are much harder to re sell and you have annual charges/groundrent to pay on top of the mortgage and they can be quite heavy. Good luck to you both. |
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