mortgage advice for first time buyer

marcusrapid

Hi

Just after a bit of advice on getting a mortgage - I am a first time buyer with a £100,000 deposit looking to buy a 180,000 house - so about a £80,000 mortgage - maybe just interest only initial as monthly income quite tight.

Many thanks in advice

marcus

happybroker

What's your income?

marcusrapid

its about £24000 but am borrowing £100,000 from parents and will have to pay them back about 300 a month initially.

happybroker

if the £100k was a gift from parents the world would be your oyster my friend.

the roughly £700pcm you will be paying toward the mortgage and the loan from parents will leave you with about £650 to pay for insurance, council tax, gas and electric, food, entertainment, clothing, car or equivalent.....this list goes on.

I'm not want to pee on anyones bonfire here but think very very carefully about how affordable this is going to be for you and make sure you get the best possible advice on the mortgage, don't stand for "information only" from the bank, as then you can put together a detailed assessment of affordability.

boinging_2

Interest only mortgage in the current market is very risky.

Why not pay your parents back a bit less per month, surely they'd rather have you paying off the mortgage rather than losing equity?

happybroker

interest only on an £80k mortgage against a £180k property isn't that risky is it? Have I missed something about property prices falling 65%?

poppy10_2

happybroker wrote: »

interest only on an £80k mortgage against a £180k property isn't that risky is it? Have I missed something about property prices falling 65%?

Op is essentially taking out a 100% mortgage, as he is not putting any of his own money down. He is borrowing £80,000 from the bank and £100,000 from his parents.
Would be fine if his parents are prepared to write off any loss they make, but if they expect the whole £100k back over time then the OP is taking a big risk.