Thursday 18 March 2004 1.13pm
Hmmm.... threads like this makes me wonder about the sustainability of the London property market. Assuming Talyn meant a £5K deposit, then you'd be looking at a maximum spend of around £100K (95% mortgage). You can obviously obtain 99% mortgages, but its not shrewd. Nor is a 95% mortgage IMHO. Anyway, so on that basis, £100K would get you a house, maybe, in mid-Wales. I think the average UK house price is now almost around £150,000 according to the Halifax. And that figure obviously includes some places that you'd never want to live.
In SE1 - don't even think about it - cheapest flats (v. small) I've seen have been around the £200K mark - houses, as others have highlighted - you'd be lucky below £500K (that's half a million pounds in case you're struggling with the grand / K).
Without sounding patronising, on the basis of your posts, the fact you're going to be a student, etc I'm not sure if you're really ready to be buying yet, especially if you are talking about buying a house for £5,000. It's a huge undertaking, frequently taken on too lightly. It's going to be your largest purchase in your life quite frankly and you need to be on top of the numbers - if your deposit is £5K than your interest is going to be significant (and that's without any repayments / endowment policy) plus there is general belief that interest rates will be at 5.0% before the end of 2004, and continuing upwards to enable Mr. Brown to finance the hole in his back burner.
If I were you, I'd make sure you're completely comfortable with the commitment you're about to undertake (deposit, interest, replayments, rates (fixed / variable) - and then your bills (food, utilities, going out, transport, tuition fees, all outgoings) - then calculate your budget (leave some room in there, don't be tempted by self-certification at 6 x your combined incomes - stick to a maximum of 3.5x). Once you've got your budget sorted, come back to the group, tell us how much you can afford without putting yourself under huge pressure and I'm sure you'll get lots of helpful responses.
Not meaning to be negative and I hope you don't take this as a lecture, but if you make a mistake here, and we are talking big numbers, you could be regretting it (and paying for it) for the rest of your life.
Post edited (18 Mar 04 13:18)