Katherine and Nathan Beddoe have been married for a year and live in central Chichester on a joint income of around �52,000.

They have put plans to start a family on ice until they have bought a three-bedroomed house. They can borrow up to �180,000.

They have been advised to postpone buying a place until they can put down a 10% deposit. However, they worry about being locked out of the market unless they act now.

Katherine says: "Prices are going up all the time. My sister just bought a four-bedroomed house in Derby for �160,000 but you're hard pushed to buy a two-bed for that money in Chichester."

The Beddoes have car finance and Katherine, who is still paying back student loans, says her erratic income from supply teaching is a cause for concern.

Rob Clifford Mortgage Force

We fully recognize and understand the pressure felt by Katherine and Nathan. As they have found, regional house price variations can be dramatic.

The past few years have shown property can be a sound investment, often delivering in excess of 10% growth, compared with much lower returns elsewhere. This increases demand and shortens supply.

Having a sizeable deposit provides them with a greater selection of lenders and mortgage products. However, not all lenders will restrict lending to 3 or 4 times someone's salary.

Some lenders apply an "affordability calculation" as opposed to simply applying a rigid multiple of income. Therefore, one lender may offer a completely different maximum amount of mortgage to another.

Choosing a product and lender

I recommend in this case that Katherine and Nathan consider the fixed rate method of controlling their mortgage interest rate. This would provide them with the stability of a fixed monthly commitment, particularly useful as they are leveraging their salaries in order to get on the property ladder locally.

As they have lived in Australia recently, there may be limited UK Credit History for a lender to search and the Beddoes' credit score may be affected. It may mean looking at a lender which has a more flexible approach to recent residential history.

Fixed rates are available from 1 to 25 years. In this case it may be prudent to select a fixed rate which provides safety for at least as long as their car finance payments last, after which they would be free to look for a new mortgage deal.

Warnings

It is very easy for first time buyers to set their sights on an "ideal" property, but with house prices as aggressive as they have been recently it is vital people manage expectations of the type of property they can afford.

No client wants to buy today's dream home only to find that they lose their house through failing to meet repayments in the future.

How the government could help

There are mortgage schemes suited to supply teachers which take their P60 earnings into account without requiring a permanent employment contract. But the government could do far more.

There are many thousands of supply teachers and no shortage of work. On this basis, the government could find a way to reassure lenders that the income stream is reliable.

Maybe a guarantee of 3 months' work would satisfy most lenders or a blanket employment reference from the local authority to assist supply teachers with lender's referencing.

Tell us your experiences of buying your first home. Please specify the area in which you live.

Your comments

I got married in September 1999 my wife and I bought our house in Edgware, London 6 mnts pior the wedding. My bugdet was 140K but we ended up spending 170K on a 3 bedroom semi detached house. Our yearly income approx. was �80K. This year in March we have moved to Perth in Australia! Its very true housing is so affordable here, lifestyle is great, weather is fantastic and less stressful. I recommend all UK residance to move to Australia as we found our life in UK was too hectic and expensive to enjoy. We are now planning to buy a 4 bedroom house with a 'ocean view', swimming pool, outdoor spa, games room etc for a lot less than it would cost in UK. Any monies you bring here is multiplied by three due to the strenght of the pound. The general feeling here is that you will be able to save more money here in Australian dollars than you would be able to save in British pounds and then covert to Australian dollars in the UK. However, Sydney is simliar to London in may ways - Come to Perth instead!
Simon Panar, Australia

I read the above couple's comment about house prices in Australia and how they are so cheap. This is not true in Sydney where average wage earners are in same position as those in the UK. In Sydney suburbs three-bedroom terraced house cost more than in parts of London. Also, this couple earn about the average salary for the UK, and are two people yet they feel they should be able to afford 3 bedroomed house - why? The housing market is different to that of our parents' generation. Why don't they consider buying a smaller place first to get themselves on the ladder and then move up as and when they need to or can afford it.
Stephen Ecclestone, UK

Katherine and Nathan made a valid observation about house prices in the UK and Australia. My wife and I recently migrated to Australia from London after she was made redundant. Our combined income of �84,000 a year meant we could have afforded a property in London, but we could get much more in Australia. We used our �45,000 deposit to buy a nice 3-bedroom house in Brisbane without a mortgage. We later took out a mortgage, but used that to buy a car. My wife has started university part time, and I work as a contractor. Warning: my income is half what it was in London, even though I have moved from a permanent to contract work. Unskilled workers will find it hard to get work in most parts of Australia. Friends of ours have done the same, choosing to leave London for Europe, Australia, and Canada.
Richard, Australia