Mortgage help

INFECTION

INFECTION

INFECTION

Associate
Joined
21 Sep 2005
Posts
526
Location
Leeds
hey peeps not been on in a long time just a quick question any help will do .

me and the woman are looking to get a house i live in leeds we want to get a morgage on a house what do we need to do do we need like £100,000 pound to start or do we need a deposit to put on a house i really dont know we currently live with my rents so we just need some advice. thanks

INFECTION
 
Lots of variables but ..... if you are working and have a deposit you will find it a lot easier to get a mortgage; though 100% are still available.

Go for something you can afford reasonably easily even if it's not in the best area.

Good luck.
 
Put her out on the market and you'll have the cash in no time :cool:

Or......use the link that KC suggested :p

You'll need to build up a deposit and the mortgage you can get is usually about 3-4 times your joint earnings, IIRC :)
 
Judging by the wording of the first post i think you should carry on living with your rents for another few years...
 
Grrrrr said:
Judging by the wording of the first post i think you should carry on living with your rents for another few years...
Click to expand...

Harldy an appropriate comment, but anyway, thanks for your input!

OP.., Some lenders like a minimum of what they call LTV of 95% (or Loan to Valuation). This means that if the house you want to buy (as an example) is £100,000, they will want you to front 'at least' £5,000.

As has been said, a few will allow you to do 100% mortgages where they give you the entire value of the house.

If you can afford it, make sure you repay the capital amount on the money borrowed (or if you really struggle, I would suggest you do not pay interest only for more than 3 years).

By paying back capital (Capital Repayment Mortgage) you reduce the actual amount of money borrowed and not JUST the interest. With interest only, you pay back just interest.

Also, its worth noting and getting advice on fixed or variable rate mortgages, I can give you some info but my tea is ready so will post more later if you want.

Lastly, if you find your monthly repayment a comfortable amount, by overpaying say £50 a month extra, this can reduce your mortgage term by 5 odd years!!!

Hope this is more helpful than the last post!!
 
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I recently bought a house and found the following guide fairly useful: http://www.home.co.uk/guides/buying/ . It's fairly simplistic but covers most of the key points you need to consider, and not just the mortgage itself. As a rough guide I would try to set aside an additional £4k or so to pay for stamp duty (depending on house value/location), valuations, solicitors fees, searches, and all the other little things which add up. Many mortgages will also have a setup fee which could be anything up to £1800 (although most will be under £750).

As you currently lack the knowledge youmight also like to consider speaking to mortgage advisor to get a feel for things. There are loads who will do this 'for free' because they will get commission from the lender should you sign up to a mortgage. But you are under no obligation to do so and providing you don't let them put through any actual applications (having too many mortgage applications on your credit file could set alarm bells ringing for some lenders) there is no harm in speaking to someone to get a feel for how things work.

You first port of call should have course be to ask the question "How much can we afford?", both in terms of initial outlay (deposit plus everything I mentioned earlier) and monthly repayments. This gives you an idea as to what sort of mortgage you should be aiming for. Remember that your monthly repayments won't only be the mortgage, there is also utility bills, house insurance, life insurance, communications (tv/internet/phone etc) ford and transport. It's also a good idea to keep a little in reserve in savings in case for example you or your partner becomes unemployed, or any unexpected costs appear out of the blue. And just because you can afford, say, £1000/month mortgage repayments today, doesn't mean that you shouldn't consider getting a smaller mortgage if you can. My mortgage is a good 30%+ lower than the maximum we could have got, because I didn't want to overstretch and buy a house better than what we needed, only to possibly run in to trouble further down the line - e.g. if we start a family. This allowed us to go with a 20 year mortgage rather than the standard 25 year.

So basically, don't rush in - take a good look at your finances as this will give you a position of strength from which to base your decisions.
 
Don't take this the wrong way, but judging by your knowledge on the subject you would be best places to speak to an "independent" mortgage advisor.

They will try and offer you their own products etc, but you are under no obligation to go with them.

We were first time buyers a few months back and went down this route to tap him for his knowledge. We then went with someone completely different.

Mal :)
 
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