£175k my house was and my mortgage payments are £570 a month.
My interest rate is 2.8%, that’s the best I could get but hopefully that drops when I remortgage next April.
The nervous wait to exchange....
- Thread starter noj
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My interest rate is 2.8%, that’s the best I could get but hopefully that drops when I remortgage next April.
Don
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thanks Captain, what sort of deposit was that may i ask ?
That was a 5% deposit.
I had 2 options, either put down a 40% deposit and have lower monthly payments or stick with the initial 5% but overpay up to the maximum 10% allowed which I did.
This then allowed me to keep all my money for renovations and start looking at a 2nd property to renovate and let.
Associate
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My flat was £137k and was £450 a month with 20k deposit
My current House was £234k £705 a month and 58k deposit. It high as I moved doing my mortgage term and didn't want any early repayment charges.
We're in the process of this. We just had to start our application to extend our mortgage offer yesterday.
First time buyers buying a 2 bed detached house for £287K we took advantage of the 5% deposit which was £13,900 and got a mortgage with Barclays on a 5 year fixed rate of 1.8%, iirc.
Our monthly repayments were going to be £637 and the term was 35 years.
I don't think it was particularly a good deal, we would've much preferred to have had more to get us up to 10% or 15% but beggars can't be choosers. We'll be paying off extra to try and make it better for ourselves in the long run.
In an ideal world I would've loved to have had it over 25 years, 30 at the very, very most. Yet here we are with 35 years
Soldato
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35 years is fine, it's only a problem if it actually takes 35 years to pay it off. With over-payments and a hopefully increasing salary compared to inflation, it's manageable.
Most people will probably move at some point, so at that point in time you can get a new deal with a new term etc anyway based on equity.
Don
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thanks guys
a lot to think about
a lot to think about
Not saying it's a bad deal
Just looking at the chances of the market moving down, with such a low bar to borrow such large sums, I don't see a major downward movement happening.
I'm 38 in a few months and I pay £1050 a month with 16 years left on my mortgage. My mrs and I want to buy together and for the sort of house we want that looks like it's going to go up to around £1300 a month but with 25 years left.
The other option is she buys into my current house and we could be mortgage free in around 7 years which would be a great position to be in.
The conundrum is difficult, nice big house but with a nice big mortgage, or a nice smaller house lacking some things we both want but be a slave to a mortgage into our late 50s/early 60s.
The other option is she buys into my current house and we could be mortgage free in around 7 years which would be a great position to be in.
The conundrum is difficult, nice big house but with a nice big mortgage, or a nice smaller house lacking some things we both want but be a slave to a mortgage into our late 50s/early 60s.
Don
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I'm 38 in a few months and I pay £1050 a month with 16 years left on my mortgage. My mrs and I want to buy together and for the sort of house we want that looks like it's going to go up to around £1300 a month but with 25 years left.
i cant aford that !
thats my monthly wage ! lol
I'm not going to go into earnings, but just make sure that you remember two key things:i cant aford that !
thats my monthly wage ! lol
- The more you earn the more you spend
- Don't ever forget that the cost of owning a house isn't just the mortgage; consider council tax, stamp duty, house insurance, broadband/phone, energy bills, repairs, mrs wants a new garden, solicitors fees when remortgaging if it's not included etc etc
Don
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Thanks ChrisD
How into messing up your life are you?I'm 38 in a few months and I pay £1050 a month with 16 years left on my mortgage. My mrs and I want to buy together and for the sort of house we want that looks like it's going to go up to around £1300 a month but with 25 years left.
The other option is she buys into my current house and we could be mortgage free in around 7 years which would be a great position to be in.
The conundrum is difficult, nice big house but with a nice big mortgage, or a nice smaller house lacking some things we both want but be a slave to a mortgage into our late 50s/early 60s.
We had this conundrum last year. We wanted to upsize and were looking at a reasonably large uplift over our existing PPR. Do we enter into a mortgage and buy something ready (or nearly ready) to go, or do we purchase land and build something, or convert something with a granted change of use. In the end a large barn came up very locally (a relatively rare opportunity locally as barns are done to death) and (some legal issues pending) we have settled on a cash purchase of an agricultural building which i will then convert. We'll build a sizeable increase in overall position going this way, over buying a comparable house ready to go, and clearly save entering into a mortgage. We will also make a large saving in SDLT. It is perhaps worth looking off piste if you can be bothered.
Soldato
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i cant aford that !
thats my monthly wage ! lol
If your monthly wage is that then you will very much struggle to get a £200K house unless you have a large deposit.
Banks tend to lend around 4.5 - 5x your annual salary max if on your own. If you earn £20K per annum then they would not lend you more than £100K at a push.
They also take into account things like outstanding debt, monthly outgoings, loans, car payments etc.
If doing as a couple then it's probably more like 4 x joint salaries they'll lend, but the same applies with checking finances for both of you.
Don
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My mrs earns ~ £18k base and then an extra £8k or so in bonuses. She was looking at a £180k house and using a £75k deposit she really struggled to get anyone to lend her the money. The ones who did all had high interest rates and fixed for 3 years minimum. Her only debt is a PCP for around £180 a month and a £50 phone bill.
Soldato
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thanks
Glad i dont have any loans/car payments etc etc or any debts
It should be pretty simple to work out what you can get then, take your salary, multiply by 5x, then add your deposit. That would be roughly your limit on spending.
There are potentially a couple of schemes around where the govt can put down some of the deposit (I think it's the help to buy one), effectively like a loan, but there some caveats around these types of things.
Whack your details into the nationwide calculator should give you a good idea: https://www.nationwide.co.uk/products/mortgages/first-time-buyers/mortgage-rates?buyerType=ftb
Also recommend having a chat to a fee-free broker who can give you a much better affordability value, as this is guesswork. They can actually tell you what you might be able to borrow.