First time buyers

I think lenders are more likely to lend higher multiples on lower priced properties as they tend to be less susceptible to price drops in difficult economic times, rates are set to remain low for another 18 months or so, if she defaulted the repossessed property would achieve a good price because it's an entry level property and affordable.
 
DanTheMan said:
It was done through Halifax via a financial advisor that was recommended to us. It was done in September of this year, I couldn't be on the mortgage application due to being a full time student so she did it alone and we added me on later.
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so less than 3 months ago a person on less than £16k p/a was offered a £95k mortgage with a less than £10k deposit? wow
 
cm1179 said:
so less than 3 months ago a person on less than £16k p/a was offered a £95k mortgage with a less than £10k deposit? wow
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Why do you sound surprised, there's loads of mortgage deals about. It's like everyone saying you need 15% minimum. No you don't.

Although 5xsalary seems to be the normal limit.

Also I expect they could have got 95k but they would have still need 10%deposit.
 
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Glaucus said:
Why do you sound surprised, there's loads of mortgage deals about. It's like everyone saying you need 15% minimum. No you don't.

Also I expect they could have got 95k but they would have still need 10%deposit.
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what were the repayments on the £95k mortgage? on a wage of less than £16k and an £8k deposit i just can't see a bank leanding such an amount but if the poster is sure that's the case, then well....
 
Glaucus said:
Wow good going knip, hope it works out.
Wasn't long ago it was all falling apart and you moved in with parents.
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I'm still here at the moment. The debts were all paid off as of September, so getting out again has been my next mission. Am now just petrified it's going to go wrong now I've found the flat I want, in the area I want, at a price I can afford.
 
Glaucus said:
Where is it?
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Bedminster. Near Parson St station, walking distance to footy and I can commute to work for £3.30 return on the train if I want.

Plus it's currently a 24 mile round trip from home to work. If I move there it'll be 7 miles in total. Will save a packet in petrol.

Its also all nice and new enough that it doesn't need anything major doing to it, just cosmetic stuff to make it "mine"

I had that feeling they say you get when you walk in somewhere and know its right.
 
Thanks for all the advice guys! Think not only my self will find this thread illuminating haha.

As for my previous track record for payments, they were fantastic until I recently split with my ex leaving me to rent a very expensive house on my own which resulted in me falling behind on a few payments. I paid them as soon as I could and nothing ever went further than a 'last warning' situation. Aside from one which some how went under my radar and I got a letter from a collection agencie. Rang up that morning and paid the full amount without question.

Have now got my self back on track, but obviously the credit rating was hurt in the process so yea, will take me a while. I am not sure if i defaulted on any of the payments. Each time I spoke to someone when paying I asked if it would effect my credit rating and all said no...

I will do one of those credit check things and see where I am at in the new year.

ags
 
I am hopefully (crosses everything) completing on my first house on Wednesday :eek:

And I am on my own and have managed to get a £136,800 mortgage with a 10% deposit at a rate of 4.99 fixed for 5 years and it was a struggle to get that. So if you have a larger deposit, more salary etc then you should be ok.

Now depending how bad your credit is will make a big difference, and if you have any outstanding loans. My student loan was waived but only because I had 2 months left on it but some lenders do take this into account.

And if you have a bad credit history DO NOT rely on these online calculators to see how much you can get, you can't even rely on a Mortgage in Principle unless its based on a credit check. If you get a Mortgage in Principle without a credit check then you'll get a horrible shock when you come to actually apply for the mortgage. I have a good credit history with no missed payments etc but as I only have 1 credit card etc my score is low believe it or not and this got me refused at some of the lenders :mad:
 
4.99% for 5 years is a tad high to me personally, who is that with? I assume that was a 10% Deposit.
 
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Yeah its the 10% deposit that makes the rate higher. But its better than the 6.09% over 2 years Northern rock wanted!!! I was also getting refused because my credit score was low even though I have never been in arrears, always paid the CC on time and had no other loans apart from my student loan.

I looked around everywhere and even the mortgage adviser had problems. The monthly amount isn't much more than I am paying on rent so its manageable.
 
AFK_Matrix said:
Yeah its the 10% deposit that makes the rate higher. But its better than the 6.09% over 2 years Northern rock wanted!!! I was also getting refused because my credit score was low even though I have never been in arrears, always paid the CC on time and had no other loans apart from my student loan.

I looked around everywhere and even the mortgage adviser had problems. The monthly amount isn't much more than I am paying on rent so its manageable.
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Without being nosey, just how much a month is outgoing excluding bills?

Thanks
 
I imagine that repayment will be £800...according to handy calculators ;) + single holder risk + Bills + council tax + other rubbish mortgage advisors account for.

So depending on your salary, if you are not earning over 30K+, I guess that would be a risk of you missing payments.
 
My mistake then, I probably misread or I did the term as 25 years. Either way, that's a bit lower then I have found, so good I guess

I guess they pinned a lot of it on single applicant then, I can't think of any other reason if your credit score is OK and there would be enough income to cover all the bills.
 
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