Mortgages

Leesey

Leesey

Leesey

Associate
Joined
7 Sep 2010
Posts
232
Hi all,

I'm looking at buying my first property and was after some help with regarding if I can afford what I'm looking for. I'm looking to buy a house of the value of 165,000 (3 bed detached with garage and off road parking) putting down a 15% deposit of 24,750. This would leave me with a decent amount in savings for decoration, stamp duty, legal fees, furniture and rainy day money.

Now I earn approximately £40,000 before tax as my base rate, but have enhancements, on call and overtime to go on top of this. My current out goings are approximately £300 (Car tax, insurance, gym, phone, petrol).

I've never lived away from my parents, so have no idea on real world costs when owning a property, and looking at a mortgage over a period of 30years. I don't want to skint my self. I know that there will be gas, water, electricity, council, insurance, tv, Internet to pay on top, but I'm pretty clueless here without having many friends who own their own property.

Any advise would be appreciated.
 
You'll ace it mate on that. Provided you have a good score and no bad debts.

Were buying and the lenders are offering 4x, 4.5x and 5x income dependant on circumstances

I can put you in touch with a broker if you want. He comes highly recommended over at pistonheads.
 
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You should be fine on that sort of wage.

Putting 25% of your take-home wage into the mortgage is usually considered very safe, with most people able to live comfortably putting in 33%. Just watch out when the rates rise. Could you still afford the repayments if the interest went up to 5%? 7%?
 
We managed on 95% mortgage paying 50% of take home and all fees added when rates were 6 - 7 % lol 2000's mortgages

Seriously rates aren't likely to rise till mid 16 I'd be tempted to take the lowest possible cost for 2 years then fix for as long as possible.
 
Tunney said:
You should be fine on that sort of wage.

Putting 25% of your take-home wage into the mortgage is usually considered very safe, with most people able to live comfortably putting in 33%. Just watch out when the rates rise. Could you still afford the repayments if the interest went up to 5%? 7%?
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I think so yes, with add on's to my wages I can earn an extra 7-14k per year. And fingers crossed there will be an extra income into the house in 2-3 years. All else fails, I can let out a room.
 
mattyg said:
You'll ace it mate on that. Provided you have a good score and no bad debts.

Were buying and the lenders are offering 4x, 4.5x and 5x income dependant on circumstances

I can put you in touch with a broker if you want. He comes highly recommended over at pistonheads.
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How do brokers work, do they find the best deal for you, or for themselves commission wise?
 
Depends how good your broker is I guess! We went to one who couldn't beat the rate we got from Halifax direct, so do your research first.
 
If you use a broker, try and stick with a "Whole of Market" broker who isn't tied to certain lenders.
 
Just direct, and then straight to the bank in person, brokers are nothing short of crooks only out for the commission telling you this is the best deal we can get, when it is clearly not.
 
We spoke to a broker who recommended a product that was only available direct so he made no commission from us.

I think they are useful if there's something unusual about your circumstances (bad credit, self employed etc) or don't want to do the legwork yourself.
 
We will be looking soon and coventry building society seems to come out at the top most of the time, but overall most seem to float around 4% at the minute.

Do people think fixing for 5 or 2 years is best at the minute. We would do our best to overpay as much as we can each month as well to start with.
Halifax seems a safe bet as well, i bank with them already as well.
 
Ring London & County, they were excellent when I was looking for Mortgages, didn't go with them in the end, but they gave great advice.
 
Spook187 said:
Just direct, and then straight to the bank in person, brokers are nothing short of crooks only out for the commission telling you this is the best deal we can get, when it is clearly not.
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honestly - not got a clue.

The fee for the mortgage is paid by the lender to the broker. Most lenders pay the same fee or thereabouts. Hence no dubiety about who they use, they use the best deal that suits the client.
 
Brokers know how to play the system.

I've only ever had a good experience of brokers. Its financial advisor's I have an issue with
 
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