2017 house prices are predicted to be higher in the latter part of 2017 than the beginning. Experts have recently advised anyone looking to make money over a short period to put off buying for now. But for any first time buyers looking for a house for their current or future family, any time is a good time to buy.
You can borrow up to four times your income salary if you have a good credit rating and low debt. Different lenders calculate how much they will loan an applicant using different methods. Looking at different lenders websites or visiting their agencies will help you understand how much they can lend you and whether buying is a realistic opportunity for you at the moment.
Your income may not be high enough for you to purchase the sort of property you are looking for so you can look to get help. This can be loans from family or friends who are willing to help or be a guarantor on the property. Or, buy a property with your partner or friend to double the amount of money you have to buy a property so you can get a bigger home. If you do this you must involve a solicitor to cover any issues should you separate.
In general you will have to put down about 30% of the asking price of the property you want to buy. The higher the percentage of the loan that you require, then the higher the interest rate will be. An average UK mortgage is £150,000 so each month you'd be paying between £700 -£1,100 which would depend on the deposit you have. You will need to find out about freehold dorset as this will affect how good a deal you are getting for your desired property.
Any properties priced at £125,000 and higher will usually have to have stamp duty paid which is 1% of the purchase price. However, until March 2012 this law has been abolished. If a property is priced over £250,000 then stamp duty will be 3% of the price. On top of this a valuation, survey, legal fees and removal costs will need to be paid proving that buying a home is no cheap task. You should seek the advice of solicitors in dorset to help you along the process and meet all legal requirements.
If you are struggling to get the money together then shared ownership should be considered. This allows you to buy a percentage of a property, renting the rest of the balance until you can buy the remainder of it in stages. The deposit required for schemes like this is a lot lower at 5% of the purchase price.