Housing Market News And Views First Time Buyers: Should You Buy ?

Date Published:

09/02/2009

What have your experiences been? We heard from three sets of first time buyers

James Rutherford, an online producer from Surrey earns around £25,000 and is buying with his girlfriend (both left). Between them, they have an income of £50,000 and have been able to save a deposit of £30,000. They began by visiting HSBC where the student account holders were given preferential rates, however since the credit crunch these have stopped completely. The range of mortgages offered by HSBC are limited to only their own products so without the special offers to account holders, the mortgages were quite unattractive to them. 'What did prove positive was that there wasn’t any evidence of the supposed impossibility of getting lending as has been touted by some of the national press,' says James.

'On a recommendation, we visited an independent broker who was very helpful. He pointed out that first time buyers are in a strong position but the only way to get a real bargain is to offer well below the asking on several properties and hope that someone is desperate to sell. While this rather unsavoury approach seems very much to be taking advantage of the situation, I have to weigh this up with the fact that all of my working life I’ve felt that I wouldn’t be able to buy due to ever increasing house prices that always went up by a multiple of any pay rise I received.'

'We’re provisionally looking for a one to two bedroom flat in east London, as this seems to offer more value. Mile End would be ideal with its great transport links and its proximity to the large open space of Victoria Park. My top tip? See a few mortgage brokers and independent advisers to get a good idea of what’s on offer.'

Vicky Matthews (left), a development researcher from London had a deposit of £15,000 and earnings of around £25,000 a year. She bought a house with New Build HomeBuy - a part-buy, part-rent scheme through www.housingoptions.co.uk which allowed her to buy a percentage of the property, with the option to purchase more over time. She settled on a one bedroom new build in Colliers Wood and still in good commuting distance of her job in central London. 'I've been looking to get my own place for some time now but house prices have been so expensive, there was no way I could afford to buy alone. The New Build HomeBuy scheme means I have a foot on the property ladder and eventually when I can afford it I will be able to own 100% of my flat. Colliers Wood is a completely new area for me but it is close to my family so I am looking forward to moving there. My top tip? Have a deposit ready and be prepared to move to a new area.'

Justin Talbot (left), a civil servant and his partner, Charlotte, a radio producer, had a deposit of £18,000 and combined earnings of £67,000. They bought a 100 year-old terraced house in with a 25% repayment, stepped mortgage. They settled on the south east coast after trawling a number of commutable locations around London, eventually choosing the East Sussex area. 'Despite the fall in house prices since we bought the property, it's certainly been the right move for us,' they say.

The property required a lot of renovation, including complete damp proofing of the ground floor, extensive replastering, new kitchen and bathroom, carpets throughout, electrical re-wiring and plumbing. 'After living in London for three years, we had an opportunity to buy and decided to take the plunge and buy a property in need of renovation to maximise any future profits. It also feels like our home as we've designed the refurbishment around our own style.'

More Information For First Time Buyers

Mortgage information from 4Homes
Affordable Housing Schemes For First Time Buyers
Affordable Housing: What's On Offer To Buy?
Mortgages For First Time Buyers
First Time Buyers: The House Buying Process

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