Ive been looking into mortgages and trying to learn all there is to know about them and what offers are out there.
I can't belive how much the repayments are on say a 100'000 mortgage!!! how can young people/couples afford em!??

Im 22 live a nice 2 bed flat with my bird and bought a new car in april which i still got just under 3 years to pay. Im trying hard to clear 6k credit card debt ive cut those up and have 1 loan left which will be cleared in 3 years time.

It seems saving up for a 10% deposit is the best way to go but i can't afford to save untill 3 years once the car has gone etc and i roughly work out ill be 28- 29 years old once ive saved up 20k and then i can afford to buy my first house. Does that seem to old??? or am i just worrying for nothing??

Im sure there are thousands of people in the same boat as me i wish house prices would fall!!!!!!!!!!!!

 

thing is mate by the time your 28-29 that 20k will be worth fook all probably
how much are you currently paying in rent? would that money not cover your mortage payments
i personally would never rent a place as i think id just be giving my money away

 

how can young people afford it ?
with the debt you've already got ,your probably already paying out more a month than a mortgage would cost.
other people can afford a mortgage because they are a bit more prudent with their money.i don't know your cicumstances mate but,it seems to me that you may have been living beyond your means,
the last thing you need is somebody preaching to you but i think you're gonna have to shift some debt before getting some more

 

Yup lifes a bastard init...

I could only get a mortgage with one company when I bought my house, most companies work on a formula of 'X'x your annual wage, with some it's 3x others it's 5x others work on a joint income x 2.5, all of those would not add upto what I needed too pay. We ended up going with a Company called IF (intellegent finance) they work on something called affordability, where by they look at your incomings and outgoings, and if they think you can afford the payments then they'll give you the Mortgage.

It may be worth considering paying all your other debts off by adding them to your mortgage... yes you'll be paying more in the longrun, due to the lengh of time of the mortgage, but it will certainly make your payments easier to handle, and you wont have as much to pay off every month.

 

I bought my flat 3.5 years ago, it was ex-council so a bit of a state so i have had to spend quite a bit doing it up. Cost me Ł90k of which Ł80k was mortgage, that cost me Ł560 a month and over the last 3 years i have run up about Ł20k debt doing it up, just remortgaged it for Ł100k and paid all that off and now paying Ł520 a month (figure that) no debts now so quite happy.

 

was that a 125% mortgage??

how old were you all when you bought your first place??

 

Im now in middle of all this ive had a offer accepted on a house which is 80k im also getting a 10k loan on top so 90 k all together but this is interest only and is Ł460 a month and ive not even got to put a deposit down

 

I think im doing the right thing. im no way struggling to pay my debts off infact i could have those cards clear in 6 months. I plan on paying off ALL my loans credit cards etc then plough as much money into savings for a deposit for a few years.

I was shocked to see that the average age for first time buyers in the uk is 34

and i thought 28 was getting on abit!

 

Are you really sure you can pay them off in 6 months? I ask only because who wants to accrue and pay interest on something for 3 years when they can pay it for only 6 months. If you do this in 6 months and then plough the money into savingis you will have effectively 5 years worth of savings against your plans 3 years at the same date 2010.