to buy or not to buy??

[shinkypink19]

Hi...my boyf and I have been 'offered' first refusal on the purchase of a house from a family friend. The 3 bed house with gardens front and back had been valued at 115,000-120,000 but they have said we could have it for 110,000: we would get cheaper price - they wouldn't have to go through estate agents.
Do we go for it? I earn 21,000 he earns 18,000 - we are currently renting at �500 pcm, how much more would a mortagge be?!? Where can we get advice?!?
Thanks for reading, I know it would be a bargain, but I don't know what to do - buying is a bit scary!!

[raysparx1]

At todays interest rates the repayments would be slightly higher than the rent you are paying, but long term property is a very sound investment, a few things to consider are, you have to pay for repairs, and insurance, but on the positive side, you can decorate how you like change whatever you want,I would buy,I have bought and sold lots of houses and think property is a far better investment than pensions, some building society websites might have a calculator to find repayments,if you do go for it, I would say get a fixed rate for at least the first 3 years,then you can budget ,you will know exactly what outgoings you will have , good luck, Ray

[redcrx]

by calculating a rough figure based on my own mortgage I reckon youd be paying around �550 - 600 based on current rates.
The best way to get advise is to speak to a mortgage advisor, either at your local estate agents (they are not linked to agents) or at your bank.
You will also need to consider getting life insurance and critical illness cover as well to cover the mortgage should anything happen to either of you, plus you will still have to pay solicitors and surveyors fees, although some mortgage companies may pay this for you.
Im not sure but stamp duty (1% of purchase price) may also be payable.

[redcrx]

Ray mentions fixed rate mortgages. It has been reported this week that many of the big mortgage companies have withdrawn these offers due to the rate increases so get to speak to an advisor asap to see whats still available.

[My Angel Pie]

I would phone your nearest branch of Nationwide Building Society. I have banked with them for years, they did my first mortgage and it was totally painless, you can speak to an advisor over the phone who could do you some rough calculations i'm sure. I would reckon your mortgage would be around �600 per month. \I have rented for years but love my 'own' home and would never want to go back lining the landlords pockets. It could be the best investment in your life. Good luck and let us know what you do. x

[Pea Pod]

http://www.bbc.co.uk/homes/property/mortgageca lculator.shtml

[beryllium]

buying is a sound investment and you can get a fixed mortgage for 10 years or even term.
First Direct has 5.4 fixed for 10 years and that will cost you �676 a month.
Go to

http://www.uknetguide.co.uk/Finance/Remortgage _Good_Credit_History_Search/

have a good read of all the mortgages on offer and take repayment. That means you will pay the interest and the mortgage.
You will need a little bit of money for a solicitor and stamp duty....

http://www.qck.com/stamp-duty.html?searchsite= google&sourcekey=stamp-duty&gclid=CM6ljpbY6okC FRdUMAodqGgGFA

Read up well hun and you'll be fine.....

[beryllium]

http://www.moneynet.co.uk/mortgages/residentia l-mortgage/residential-mortgage-results.php?or derby=stepper%20asc&page=1&order_by=&desc=&sw_ value=110000&sw_mortgage=110000&sw_existing_re dem_pen=&sw_existing_rate=&sw_existing_fcd=&sw _fcd_period_left=&sw_new_interest_rate=&sw_sal ary1=21000&sw_salary2=18000&sw_arrears=&sw_ccj =&sw_nonstatus=&sw_buyer_type=1&sw_fixed=Fixed &sw_capped=&sw_discount=&sw_variable=&sw_baser ate=&sw_libor=&sw_repay_method=&sw_intro_perio d=&sw_interest_type=Repayment&sw_intro_period= &sw_repayment_amount=0&sw_interest_only_amount =0&sw_period=25&result_per_page=&sw_costperiod =7&sw_redemption_penalty=0&sw_comp_building_in surance=0&sw_legal_costs=&sw_draw_down=&sw_pay ment_holiday=&sw_over_under_pay=&sw_pct_withou t_pen=&sw_link_to_saving=&sw_valuation_fee=&sw _institution=

[beryllium]

sorry, meant to add I'd put in the figures for a 100% mortgage as I dont know if you have a deposit.....

[shinkypink19]

Well, we have �10,000 savings but we know some of that will be eaten up by solicitors etc if we go for it...thanks for help - still unsure what to do for best, esp as house would NEED new kitchen and bathroom at a cost of 4K (my Dad's a builder and has given me a quote!) xox

[Im a BusyBee]

if you feel you would like to own your own house at some stage in life then go for it. the way the prices are going the sooner you get on the ladder the better. its amazing how most people manage when put in a situation and i guess you would too. if you dont ever take a risk over things you will gain nothing and possibly regret not doing so. i always used to worry and be unsure but after thinking positively and planning for the future we have houses rented out as well as our own. if on the other hand you can see yourself happily renting and never buying then stay as you are.

[beryllium]

is the kitchen and bathroom useable? if you'd seen the stste of the house we bought..... well :-( we put up with it for a year before we put in the kitchen and the bathroom? still in the planning stage lol..... when you move into a new house, you need time to settle in, get a feel for colours you'd like etc..... houses take time to get to how you'd like it, no rush.... we didn't even have a cooker, we survived with a BBQ and a microwave.....
If you don't want the house on offer, have a look at other properties, get a mortgage offer. The only reason your friends want to sell to you first is so they don't have to go on the competitive market and they will save 1.5 % + in estate agent fees.
Go on a house hunting expedition. You're just looking but some sellers prefer you to already have a mortgage offer in place.

[beryllium]

also.... why line someone elses pocket? with paying their mortgage whilst renting their property instead of lining your own pockets......