First Time buyer in dilema! Can anyone help?

Olly_2008

Hi all, I am a bit of a dilema and hope that someone may have a few pearls of wisdom to help me out!

I am looking to buy and am a first time buyer. I have a deposit of £5k and potentially could increase this to £10k. My parents have offered to be guarantors as their two homes are paid off in full.

Does anyone know if banks will take this into account when considering loan amounts? My current salary taking into consideration bonuses etc is Just over £45k p/a. and would prefer to buy as opposed to paying off someone else mortgage!

Any help would be greatly appreciated!

_Andy_

Hi

How much is it you actually wish to borrow? Have you found a particular property you'd like to buy?

Also what's the breakdown of basic and bonuses?

Olly_2008

Thanks for getting back to me! Probably looking at borrowing £175k although haven't found a property as yet. It kind of depends on rates and repayment figures etc!

I have been renting for about 8 years comfortably paying a monthly amount of £900 and now realise that it may well be better to put this figure to better use!

It breaks down to salary of £28k plus bonus over the year of £17k!

lonestar1

Assuming a LTV of 95% with your deposit being 10k the most expensive house you could buy would be 200k

Of course assuming a salary multiple of 4X the biggest mortgage you could get on your own would be 112K

With your parents acting as guarantees you may get more (depending on their income)

If your looking at new builds your looking at needing a 25% deposit

I think you may have a problem with the affordability Certainly get a mortagage that lets you overpay without penalties, hopefully using that 17k bonus each year to do so

First step if you still want to do this is to see a whole of market broker and see what options are available to you