Mortgage lenders?

Dude - seriously?

ringo747 said:
Was with a mortgage advisor recently - pretty much said 4x was all you would get. Minimal difference between 10 and 20% deposits too so decided to only put down 10%.
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Unless you had some really really good reasons for paying less deposit, then you are doing yourself out of soooooo much money. Given that over 90% of your mortgage payments for he first 1/3rd of the term are pure interest, by paying less deposit youare throwing so much money away.

If you can, you can limit the loss by making overpayments each month (or periodically) which takes thousands of the loan over time and can drastically reduce the total amount you end up paying for the property.
 
Thanks guys, reason I was wondered is I understand Banks do much more research these days to determine if you can actually afford it, rather than doing set multiplier.

Not looking any time soon, just making sure that when I do, credit score and anything else is as good as possible.

Unless you had some really really good reasons for paying less deposit, then you are doing yourself out of soooooo much money. Given that over 90% of your mortgage payments for he first 1/3rd of the term are pure interest, by paying less deposit youare throwing so much money away.
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I imagine most people will get items on credit or loans, to decorate/furniture/improve house.
 
jamief said:
Eh?

At 10% you're looking at 5.5% +
At 20% you're looking at 4% or less depending on how long you fix for.
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Britannia wouldn't lend us more than 75% (so we had to get some deposit from my dad) and that was for 10 years fixed at 5.5%.

If you go for short fixes like 2 or 3 years, you can get much lower rates; I think they offered us 3.5% on the very short term fixes.
 
vonhelmet said:
Britannia wouldn't lend us more than 75% (so we had to get some deposit from my dad) and that was for 10 years fixed at 5.5%.

If you go for short fixes like 2 or 3 years, you can get much lower rates; I think they offered us 3.5% on the very short term fixes.
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We have just fixed for 5 years at ~4.5% with a 20% deposit.

If we'd had a 10% deposit, the same 5 year fixed would be about 5.8%.
 
Currently you are 3.49% then, and as soon as the base rate hits 1.5% (which by most accounts will be in the next 12 months) you'll be paying the same as me. As soon as base rate hits 2%, you'll be paying more.
 
no currently i am at 2.99% and i disagree i think rates will stay low.

but then again that is my gamble. But i can afford it if rates do go up so we shall see.
 
CraigN said:
no currently i am at 2.99% and i disagree i think rates will stay low.

but then again that is my gamble. But i can afford it if rates do go up so we shall see.
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I would almost put money on (well, in effect, I have) the rates being 2.5 - 3.5% in 5 years time. We're all gambling really, fixed is a gamble, variable is a gamble :)
 
well hopefully they will stay low for a long time.

im liking the £550 a month mortgage payments at the moment :P and i know they will never go over £710 ish within the next 5 years.
 
Bloomen heck , most I could ever borrow was 3 x or 3.5 times a combined couple .

Was this not a lot of what caused the credit crunch , lenders offering silly mortgages ?
 
jamief said:
Eh?

At 10% you're looking at 5.5% +
At 20% you're looking at 4% or less depending on how long you fix for.
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Have got a no tie in mortgage approved putting down 10% deposit at 4.5%. Putting down 20% the guy could only offer me deals that resulted in £20 difference a month.
 
That's not the point though

ringo747 said:
Have got a no tie in mortgage approved putting down 10% deposit at 4.5%. Putting down 20% the guy could only offer me deals that resulted in £20 difference a month.
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You are wasting massive amounts of money by paying a smaller deposit onver any length of time by paying a smaller deposit.

You should have course make sure that you can afford the payments, but the goal with owning property is to minimise the wastage of money and gain capital appreciation. The more deposit you can manage a tthe start the quicker you gain equity, the quicker you gain equity the more of the asset you owe and the more of the asset you owe means that every mortgage payment you make gets you a greater share of the equity than it would without the higher deposit.

It is win win win for the purchaser to borrow the least amount possible.
 
ringo747 said:
The thing is if I put down the full 20% I will have nothing left to kit the house out and nothing left for a rainy day!
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What are you doing with your salary every month? I completely wiped myself out buying my first house, and then "kitted it out" using salary.

Kitting a house out does not need to cost very much at all. No-one has a right to own brand new furniture and fittings. sacrificing your deposit to avoid second hand items is a very foolish thing to wish to do.
 
Jez said:
What are you doing with your salary every month? I completely wiped myself out buying my first house, and then "kitted it out" using salary.
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Left over salary paying off car, some in regular savings, some for usual fuel, lunches at work etc.

Edit: Have 20% but need to pay a wedding too so obviously want something left for that + honeymoon!

jamief said:
Tracker?
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Yep. With no tie in.
 
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