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Right time to buy?

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Cheers

 

Time to have a good look into it i think :)

 

My younger brother is doing exactly the same mate just starting to have a look, only advice I can give really about buying is make sure your buying somewhere you like and want to live, not just somewhere cause its a good deal or cheap, unless that is your buying as an investment :)

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Haha it depends entirley on the lender some will only lend 3x some will lend 4x and I have seen one that will lend 5x, it all depends on the borrowers circumstances aswell.

 

That's a given.

 

In practice, multiples of salary is just a convenient rule of thumb.

 

Personally, I never go by it, I only ever contemplate monthly repayment over term based on net income at time t0 (in view of time-tested monthly budgeting). Better know what you can actually afford for real, rather than wait for the advisor (independent or not) to tell you based on 'metrics' ;)

 

A better rule of thumb (IMHO) for FTBs that have already flown the nest and are living in rented accommodation, is a mortgage, the repayments for which would be level with their current rent (allowing for some 'padding', depending on their rate of saving if they were saving for a deposit).

 

Always best to at least get a quote from an independent advisor :thumbsup:

 

Nothing like a good free plug :D (joke, not a criticism)

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That's a given.

 

In practice, multiples of salary is just a convenient rule of thumb.

 

Personally, I never go by it, I only ever contemplate monthly repayment over term based on net income at time t0 (in view of time-tested monthly budgeting). Better know what you can actually afford for real, rather than wait for the advisor (independent or not) to tell you based on 'metrics' ;)

 

A better rule of thumb (IMHO) for FTBs that have already flown the nest and are living in rented accommodation, is a mortgage, the repayments for which would be level with their current rent (allowing for some 'padding', depending on their rate of saving if they were saving for a deposit).

 

 

 

Nothing like a good free plug :D (joke, not a criticism)

 

I agree 100% I would never advise someone to use the lenders policy on affordability to judge what they can or cannot afford its just a basic guidline that lenders use not something that anyone should use themselves.

 

Free plugs are the way to go in the current climate :hihi:

 

Before I started as a mortgage advisor and when I applied for my first mortgage I did a full budget of all my income and expenditure to find out exactly what I could afford and how much I would be willing to commit and I now do that for anyone who uses me to source a mortgage product as do most advisors I believe.

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Thanks for the advice its appreciated!

 

With regards to my situation, i live at home still so i dont rent i put just under 50% of my wages away for a deposit so got a bit behind me and i survive on the rest.

 

So this "house" is going to be my first time buy and im going to buy it alone HOPEFULLY but i do have a few people willing to move in if the going gets tough sorter speak....

 

 

If your saving monthly and not paying rent then now is probably not the best time to buy. This purely just on a financial basis as even if prices do go up for a few months they are more than likely to be a lot cheaper than they are now by the end of the year. If you are fed up of waiting though and want to buy now put in lower offers to start with, especially if you have your eye on a few places and not just one in particular.

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This purely just on a financial basis as even if prices do go up for a few months they are more than likely to be a lot cheaper than they are now by the end of the year.

 

 

wishfull thinking

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wishfull thinking

 

on what basis? The economy is not exactly recovering right now.

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on what basis? The economy is not exactly recovering right now.

 

I suggest you begin with this thread, by way of background to saxondale's position.

 

Make a cuppa first, though ;)

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I suggest you begin with this thread, by way of background to saxondale's position.

 

Make a cuppa first, though ;)

 

I took part in that thread :)

 

And none of his arguments were remotely convincing to many of the people on that thread from what I recall.

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I took part in that thread :)

 

Sorry, must have missed your userID along the way :blush:

 

Preaching the converted, then :D

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You sure? I was told 3x by my advisor (Yorks Bank) in November and again in January (and even then, that multiple is giving me cold sweats :D)

They Yorkshire are probably not wanting to lend any money, most lenders are more than 3 times income it can also depend on your credit score.

The question to ask is am I comfortable with the monthly payment.

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They Yorkshire are probably not wanting to lend any money, most lenders are more than 3 times income it can also depend on your credit score.

The question to ask is am I comfortable with the monthly payment.

 

and can you still afford it, using savings up, if you are unemployed for some time, which is much more likely in the current climate. I have heard some lenders are very aggressive to repossess currently.

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They Yorkshire are probably not wanting to lend any money, most lenders are more than 3 times income it can also depend on your credit score.

 

Oh but they do (want to lend). Matter of fact, they can't do enough for me (my credit rating is stellar, going on intergalactic), they keep ringing me every 2 weeks to see if I've seen anything I want to offer on and should they fax mortgage approval ahead to the relevant EA ;)

 

They're just quite conservative in their lending policies, which has served them well, and some banks (a lot of banks, come to think of it) could do worse than take a leaf out their book.

 

The question to ask is am I comfortable with the monthly payment.

 

Hopefully, you'll see for yourself from my earlier posts, that I fully subscribe to that approach (and further as suggested by nightrider) :)

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