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  • FIRST POST
    • Saga
    • By Saga 6th Sep 17, 6:31 PM
    • 38Posts
    • 1Thanks
    Saga
    Advice for Potential Older First-time Buyer?
    • #1
    • 6th Sep 17, 6:31 PM
    Advice for Potential Older First-time Buyer? 6th Sep 17 at 6:31 PM
    Hi!

    I have been very lucky in the last few years, after many years of illness which affected my work & earnings, and managed to get a new job which I enjoy, promotions and cleared ALL my debts. I'm now earning £26K and my Experian credit score is 999.

    Iím saving with about £14.5K in the bank now Ė £2.4K of this is in a HTB ISA which I save the maximum £200 each month.

    My OH (we're not married, no kids, renting separately, separate bank accounts) quit job and is now studying at uni for the next couple of years, has enough put away for living expenses & travel. I plan to move in with OH to save on bills etc.

    I want to buy our first home in Greater Manchester. However, being mid-40s I believe most lenders will give me only a 20-year mortgage.

    My bank gave me an online agreement in principle (soft credit search) for a hypothetical £130K property (10% deposit, 20 years term), but this gives a 4.5x multiple mortgage, which seems very high given what I have read about the new(ish) affordability tests. Does this seem realistic to you? Should I actually find a broker or bank mortgage adviser to find out exactly what I would be offered in reality, especially given my age? Should this be free or do I need to pay? What is reasonable fee for a broker?

    In reality Iím looking online at properties advertised for up to £125K with the hope of paying no more than £110K with 10% deposit (3.8x multiple).

    Also, does £3.5K sound enough to cover all the fees & costs associated with buying a house? I understand that I can only use the government HTB ISA bonus at completion.

    Or, instead of thinking of buying now, would everyone recommend moving in with my OH and carry on saving for a further 12 months to build up a better deposit?

    Thanks for any help.
    ---
    100% debt-free!
Page 1
    • aneary
    • By aneary 6th Sep 17, 7:17 PM
    • 722 Posts
    • 608 Thanks
    aneary
    • #2
    • 6th Sep 17, 7:17 PM
    • #2
    • 6th Sep 17, 7:17 PM
    You are asked when you plan on retiring I put 68 but you could put 70 and extend your mortgage length.

    My broker was useless and I ended up getting a mortgage off my own back but if you get a good broker you will probably get the best deal.
    • Kidder81
    • By Kidder81 6th Sep 17, 7:25 PM
    • 60 Posts
    • 59 Thanks
    Kidder81
    • #3
    • 6th Sep 17, 7:25 PM
    • #3
    • 6th Sep 17, 7:25 PM
    It sounds like you've got your sensible head on which is always good in such a situation.

    In theory you can go 4.5 times salary though I'm not sure id be comfortable at that level, but many people will be. I guess that depends on your job security.

    If it were me, thinking practically at your age, I'd be having a conversation with my other half with a view to possibly buying together in the near future. Otherwise you're potentially going to buy a property then realise you want to live together in a joint house.
    • G_M
    • By G_M 6th Sep 17, 7:36 PM
    • 41,883 Posts
    • 48,466 Thanks
    G_M
    • #4
    • 6th Sep 17, 7:36 PM
    • #4
    • 6th Sep 17, 7:36 PM
    Speak to an independant mortgage broker. There are a few lenders who will lend beyond retirement age esp if you have a pension set up - do you?
    • Saga
    • By Saga 7th Sep 17, 10:04 AM
    • 38 Posts
    • 1 Thanks
    Saga
    • #5
    • 7th Sep 17, 10:04 AM
    • #5
    • 7th Sep 17, 10:04 AM
    You are asked when you plan on retiring I put 68 but you could put 70 and extend your mortgage length.

    My broker was useless and I ended up getting a mortgage off my own back but if you get a good broker you will probably get the best deal.
    Originally posted by aneary
    Thanks. In the absence of "recommendations from friends & family" for a broker, what's the best way of finding a decent one? Do all brokers charge for initial consultations / agreements in principle?
    ---
    100% debt-free!
    • Saga
    • By Saga 7th Sep 17, 10:08 AM
    • 38 Posts
    • 1 Thanks
    Saga
    • #6
    • 7th Sep 17, 10:08 AM
    • #6
    • 7th Sep 17, 10:08 AM
    It sounds like you've got your sensible head on which is always good in such a situation.

    In theory you can go 4.5 times salary though I'm not sure id be comfortable at that level, but many people will be. I guess that depends on your job security.

    If it were me, thinking practically at your age, I'd be having a conversation with my other half with a view to possibly buying together in the near future. Otherwise you're potentially going to buy a property then realise you want to live together in a joint house.
    Originally posted by Kidder81
    Thanks. The plan is for me to buy the property and for us both to move in - renting seems to be just paying someone else's mortgage with nothing to show for it! The OH will then contribute to mortgage payments once working. Or do you think I should forget about buying for a year or two to build up a bigger deposit?
    ---
    100% debt-free!
    • Saga
    • By Saga 7th Sep 17, 10:10 AM
    • 38 Posts
    • 1 Thanks
    Saga
    • #7
    • 7th Sep 17, 10:10 AM
    • #7
    • 7th Sep 17, 10:10 AM
    Speak to an independant mortgage broker. There are a few lenders who will lend beyond retirement age esp if you have a pension set up - do you?
    Originally posted by G_M
    Yes, I have a basic (1% + 3%) pension with my employer.
    ---
    100% debt-free!
    • Kidder81
    • By Kidder81 7th Sep 17, 1:42 PM
    • 60 Posts
    • 59 Thanks
    Kidder81
    • #8
    • 7th Sep 17, 1:42 PM
    • #8
    • 7th Sep 17, 1:42 PM
    I don't see any reason to wait if you're happy with current financials.

    Once you buy, you'll be reducing your balance anyway through your payments so doesn't make sense to wait and save a bigger deposit as you'll be saving the money you'd have paid in rent too.

    Good luck.
    • Saga
    • By Saga 7th Sep 17, 2:06 PM
    • 38 Posts
    • 1 Thanks
    Saga
    • #9
    • 7th Sep 17, 2:06 PM
    • #9
    • 7th Sep 17, 2:06 PM
    I don't see any reason to wait if you're happy with current financials.

    Once you buy, you'll be reducing your balance anyway through your payments so doesn't make sense to wait and save a bigger deposit as you'll be saving the money you'd have paid in rent too.

    Good luck.
    Originally posted by Kidder81
    Thanks Kidder81. I was just wondering if I would get a better mortgage rate and potentially higher salary multiple if I had a bigger deposit?
    ---
    100% debt-free!
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