Questions from a FTB

I'm a first time buyer and looking at properties for sale, possibly a silly question but other than looking at properties for sale in the area and book appointments to view them and obviously see how much I can get on a mortgage is there anything else I need to do (it feels like I'm missing something out) ?Thanks

 

It really depends whether you are buying the property for yourself or as a buy to let investment? Have you worked out your finances, in goings and outgoings and what element of this you can put towards mortgage repayments? If you could give us an idea of your long-term strategy we may be able to help you a little more.

 

Thanks realdeals.

I'm buying it for myself to move into.

When you say long term strategy what do you mean ?

Ive got a huge deposit, say min of £130k (this could increase) and I could get a mortgage of £35k (could be more), ideally id like it to be lower so less monthly payments.

I can do £500 towards a mortgage, ideally I wouldn't want to have monthly payments that big.

I just feel there's something I'm missing or should be doing.

I could speak to the broker again to get a better idea of how much I could get as I've had a pay rise.

 

One question - if you put down such a large deposit would this be all of your savings? My reason for asking is that you dont want to leave yourself short of savings just in case something was to happen in the future.

BTW I dont think you would struggle to find a mortgage company to back you with such a large deposit - there would already be massive equity in the property before you even started paying back your mortgage.

 

If this is your dream home then there is an arguement for paying off as much as possible in cash so that you can reduce your mortgage payments/duration of finance. Maybe keep a little aside in your savings for everyday life as you just never know what might be round the corner

 

If you are looking for a comfortable lifestyle then investing as much cash as possible into your property would seem like a sensible move. Long-term capital appreciation should also outstrip UK interest rates, currently at near record lows, but more active investors would certainly “work this money harder”.

 

I've got some other money coming my way at some point so was hoping to point a portion of that aside as a backup.

It would be my first property, not sure if my dream home. Yes I was hoping to get a mortgage as small as possible so lower monthly payments

Thanks for the reply.

 

More and more people are now seeing the buy to let market as their future pension scheme - as the population continues to grow, and housing supply fails to keep up, it seems inevitable we will see growing demand for property. As property becomes too expensive for first time buyers, forcing them into the private rentail market, this feeds more demand from buy to let investors and the vicious circle starts

 

Its looking like next year now, so when is the best time to look for a property ?

 

I think the quieter periods are summer and winter due to holidays and the festive period. However, sellers may still be “desperate for cash” and maybe you can grab a bargain during these quiet times when there are fewer parties in competition?