First House - Mortgages etc..?

Phil W

Phil W

Phil W

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I'm totally new to this.

Looking into buying a house, and i'll have a good chunk for a deposit (around £20k.)

My income is average/good (circa £20k) and my partners is well... minimum wage i suppose.

Currently looking at houses between £130k-£150k (3 bed semi's) which is about the going rate for them in my area.

How do i go about finding out about the whole mortgage thing, payments etc? I've been told to go to an Independant Mortgage Advisor... correct?

Help :D

Phil
 
That price range might be a touch high, depending on how much of a mortgage multiplier banks are offering these days. Not sure as I am a bit out of touch with that myself..
 
Biohazard said:
That price range might be a touch high, depending on how much of a mortgage multiplier banks are offering these days. Not sure as I am a bit out of touch with that myself..
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Could be punching a bit above my weight, however i'm hoping the deposit money will set me in good stead for a relatively good monthly payment.
 
Biohazard said:
Yeah, sorry that too.

I forget as my mortgage is small (1/10 of my monthly pay) so any rate increases etc don't hit me that much. I wouldn't like to max myself out with a mortgage at the moment.
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I'm not looking at paying huge ammounts of my monthly pay packet on the mortgage, just want to get a rough idea of what i could potentially be re-paying.

A friend at work has taken out £150k over 25 years, put £6k down and his payments are £970 (give or take a few pence) a month :eek:

Thats without the bills etc and he hasn't got much furniture either :eek:
 
80k mortgage over 25years is about £580 a month. (no deposit)

Then you can add £200 a month probably more just for council tax and utilities.

do you really need 3 bedrooms, you need to be realistic.
 
Some advice here -> http://www.moneysavingexpert.com/mortgages/

Also good resource for people wanting to pay off a mortgage quicker. Overpayments are well recommended if your mortgage allows for it.

I rang a load of lenders (banks, building societies etc.) when I got my first mortgage, due to the high % I wanted to borrow. Only one would accept me - my own bank :o
 
I would imagine you will find it tricky to borrow over £100k

traditionally 3+1 x earnings ( or 2.5x joint ) were normal maximums, this would give you £70-80k, in recent years you may well have found someone to lend you a lot more but it is tricky now
 
Rotty said:
I would imagine you will find it tricky to borrow over £100k

traditionally 3+1 x earnings ( or 2.5x joint ) were normal maximums, this would give you £70-80k, in recent years you may well have found someone to lend you a lot more but it is tricky now
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Possibly.

It really annoys me, i will struggle for a sum of around £100-£120k, yet my Polish colleague walked into an advisors and got accepted for £200k, yes £200k.

Obviously he didn't do it, but it goes to show.
 
My mortgage was £440/month for £60k - that was 2.5years ago. Remember you'll have at least £500 extras just to run the house each month, the wage you both earn frankly I think you're aiming too high.

Banks just now are looking at large deposits in order to get a decent interest rate, anyone not putting down more than 10% is being crucified by them. We're in theory looking to borrow about £160K between us later this year but we'll have a £60K deposit, so I doubt we'll have too much of a problem, even then the sums of money going out each month is scary when I factor everything in. Even though on paper we can easily afford it I'm holding off buying just now due to the climate and house prices. I'd really ask you to reconsider, put it off for 6 months mate.

Mortgage advisors - go to at least two and make sure they're not working on any form of commission, then check with CAB.

Phil W - you might have a worse credit history (all sorts affect it), your Polish colleague won't, oddly that's enough to make the difference so high.
 
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Well I have managed to get mine down to 19K @ roughly 200 a month with lump sums thrown at it every so often. Quite bad interest actually, but cba to move it.
 
Kami said:
My mortgage was £440/month for £60k - that was 2.5years ago. Remember you'll have at least £500 extras just to run the house each month, the wage you both earn frankly I think you're aiming too high.

Banks just now are looking at large deposits in order to get a decent interest rate, anyone not putting down more than 10% is being crucified by them. We're in theory looking to borrow about £160K between us later this year but we'll have a £60K deposit, so I doubt we'll have too much of a problem, even then the sums of money going out each month is scary when I factor everything in. Even though on paper we can easily afford it I'm holding off buying just now due to the climate and house prices. I'd really ask you to reconsider, put it off for 6 months mate.

Mortgage advisors - go to at least two and make sure they're not working on any form of commission, then check with CAB.

Phil W - you might have a worse credit history (all sorts affect it), your Polish colleague won't, oddly that's enough to make the difference so high.
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I don't have a bad credit history at all :)

I'm just window shopping at the moment, it will be interesting to see if house prices drop further, i certainly wouldn't punch above my weight in terms of repayments etc just to have a newer/bigger/more expensive house :)
 
So your are £20k and your partners is what, about £10k? If so borrowing £100k will not be a problem. Have a look around some of the lenders sites, plugging the figures in to here says they will lend you about £145k assuming you have no other borrowings etc.

And don't believe all the scare mongering too much, if you have a decent deposit, which you do with around 14% at the top end of your pricing, and are not looking to borrow outside scheme it shouldn't be that hard to get lending providing you both have normal 'employed' status, ie not contract working, freelancing etc.....
 
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I've got a mortgage for around the same amount (£147k over 25 years) and I'm currently paying £891 a month.

Is that the kind of sum you two could afford? I pay quite a lot on top of that for bills and council tax.
 
Phil W said:
Possibly.

It really annoys me, i will struggle for a sum of around £100-£120k, yet my Polish colleague walked into an advisors and got accepted for £200k, yes £200k.

Obviously he didn't do it, but it goes to show.
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My Brazilian collegue did similar, Im sure it was the fact he was earning lots of money rather than his nationality.


PS. I made that up but I hope you see my point.
 
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