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Crashman Begins

The 1st Time Buyer Thread

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1st time buyers thread .

The big difference for 1st time buyers is that we may not have a large "Sold to rent" fund stached away to enable us to jump back into the market, so a different approach will be needed.

Please use this to post any potential 1st time buyer deals, advise, annecdotals , questions etc etc

Inspired by Eric's (1st time buyers dont buy now thread in 2005)

http://www.housepricecrash.co.uk/forum/ind...=12762&st=0

Edited by Crashman Begins

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Nice thread OP.

With no STR fund the GF and I had to move in with the inlaws in order to save enough for a deposit.

In less than a year we have saved cica £20k and paid for our wedding (next month) in cash. Though it is a terrible whack to the self esteem if you can suck it up then I highly recommend it as a way of acelerating the saving process.

I am currently trying to work out the best timing for buying. At some point rates are going to rise and the 6.5% fixes currently available will vanish but at the momment vendors are being extremely stubborn. There is going to be an ideal point if I don't want to wait another few years to buy (and I don't), I think this autumn / winter will be the key.

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I've just managed to sell my flat (thank god), and are lucky to get away with just £2000 out of it.

Me and my partner are moving back in with my parents to save up a deposit etc, however i can't see that this is the bottom of the market.

I think that the people that have bought recently are the ones that waited and saved a massive amount of money and those that STR just before the brown stuff hit the fan.

For everyone else it is near on impossible to buy at the moment, where i live for a decent two bedroom house or bungalow your looking at about £150k , but the problem is most people only earn about 12-16k round here and you have to have a deposit of about 15-25% LTV.

That is a huge amount of money for people like me and believe that prices will start to come down again from about autumn/winter this year. I can tell you we wont be buying for a few years to come and many people and friends i know are going to be doing the same thing.

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As a first time buyer in south west london the thing I would be most interested in is succesfully negotiated discounts.

Everyone on the main topic forum says offer 30% less than asking price which is all good and well but realistically someone selling there house isn't going to want to be the one who sold their house at the lowest price since x year.

Becuase of media hype about prices going up now isn't the time IMHO to be making offers as sentiment is not with us.

We (gf & I) will have a deposit somewhere in the region of 40k in November(saving will carry on while looking) when we will start actually speaking to EA's about viewings I have no idea of how long it will take to find a house or even if we will be able to afford anywhere and if house prices don't fall we won't be able to afford anywhere (other than a tower block flat or 1 bed rabbit hutch).

Basically Would love to here about negotiations including location,asking price,offered price, reaction and sellers position.

Good luck to all other FTB's!

Walls

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Nice thread OP.

With no STR fund the GF and I had to move in with the inlaws in order to save enough for a deposit.

In less than a year we have saved cica £20k and paid for our wedding (next month) in cash. Though it is a terrible whack to the self esteem if you can suck it up then I highly recommend it as a way of acelerating the saving process.

I am currently trying to work out the best timing for buying. At some point rates are going to rise and the 6.5% fixes currently available will vanish but at the momment vendors are being extremely stubborn. There is going to be an ideal point if I don't want to wait another few years to buy (and I don't), I think this autumn / winter will be the key.

That's key for me also, i'm concerned that by the time the proper falls occur we won't be any better off due to prohibitively high interest rates. I also have my hopes pinned on this Autumn to see a shift in...something, anything. On top of this, the wife is starting to get really antsy about moving. I just need to stave her off for a few more months.

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Becuase of media hype about prices going up now isn't the time IMHO to be making offers as sentiment is not with us.

Many people selling now will already have had a keen eye on the financial news and will have a balanced view and will know that the general view is that prices could slip a bit further, and even then might take a couple of years to recover. Most people selling now are either mortgage companies, executors or relatives of recently deceased (eg. selling an inherited house to elsewhere), divorcing couples etc. All don't really have time to sit around waiting for the market to pick up, and are interested in offers to various extents. You don't have much to loose really, as long as the agents think you will genuinely buy somewhere that suits.

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Nice thread OP.

With no STR fund the GF and I had to move in with the inlaws in order to save enough for a deposit.

In less than a year we have saved cica £20k and paid for our wedding (next month) in cash. Though it is a terrible whack to the self esteem if you can suck it up then I highly recommend it as a way of acelerating the saving process.

I am currently trying to work out the best timing for buying. At some point rates are going to rise and the 6.5% fixes currently available will vanish but at the momment vendors are being extremely stubborn. There is going to be an ideal point if I don't want to wait another few years to buy (and I don't), I think this autumn / winter will be the key.

Have been pondering the exact same conundrum myself recently. Is it possible to secure a mortgage offer, and then not exercise it for a while, or does it expire? For example say I got myself a 5 yr fix at 6.5% now, but then didn't buy anywhere until early next year - would it still be good? Would the 5yr period start from when the money was borrowed, or from when the finance was made available?

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Have been pondering the exact same conundrum myself recently. Is it possible to secure a mortgage offer, and then not exercise it for a while, or does it expire? For example say I got myself a 5 yr fix at 6.5% now, but then didn't buy anywhere until early next year - would it still be good? Would the 5yr period start from when the money was borrowed, or from when the finance was made available?

I've just obtained a five year fix from the HSBC, and yes, you can sort of defer the actual purchase - up to 6 months at the HSBC. However, you would need to know exactly what size mortgage you require, and also pay the fees in advance. Actually, the way it was worded to me, as I have a house in mind, was if the sale fell through, then I would have 6 months to find another property - so perhaps the conditions aren't that flexible.

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ok, thanks Bryn - that's useful

Not a problem. I'd also encourage you to look at the HSBC for the best fixed rate deals - I did a lot of shopping around, and I managed to get a 4.69% 5 year fixed rate, with a £599 fee.

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