First Time Buyers!

porkiepine

Thank you for the advice.

We have now got a decision in principle from RBS. Does this mean that provided we have told the truth (which we have) we will definitely get a mortgage?

As I said before I am about to start a training contract and as such I will be leaving my current job to start my TC on 8.10.08. I will be earning at least what I am now, more likely than not I will be earning more though the salary has not yet been confirmed. Is this going to cause problems when they contact my employer for information?

Thanks.

rozzy_2

You should get the mortgage but it isnt as concrete as a mortgage offer.

I had a mortgage in principle but when it came down to getting the final mortgage offer they changed the fixed term from 2 years to 5 Years.

Someone please correct me if im wrong but you will need to show 3 months of payslips in order to satisfy the lender. This may be a tricky situation, im sure someone will be a long soon to answer.

porkiepine

I thought that as well about the payslips. The broker doesn't seem to think that it will be a problem but when I spoke to RBS they told me that I would need 3 months payslips?! My broker really confuses me hence why I am posting on here for advice!

0james0

porkiepine wrote: »

I thought that as well about the payslips. The broker doesn't seem to think that it will be a problem but when I spoke to RBS they told me that I would need 3 months payslips?! My broker really confuses me hence why I am posting on here for advice!

Often if you can't find 3 months payslips or have just started a new job the lender can go for an employers reference to prove what you earn. Very important though is to check that the lender has no stipulations about how long you need to have been in employent or what their stance is if you are on probation. I'm fairly sure that RBS won't lend if you are on probabtion.

Also, you mentioned previously that you are doing a vendor gifted deposit, you do realise that RBS will not count the 5% vendor gifted as an actual deposit? All they will do is deduct that from the gross purchase price, basically meaning you are purchasing the property at 95%. THIS WILL MEAN THEY WILL CHARGE YOU A HIGHER LENDING CHARGE OF AROUND £1500, MAYBE MORE!

The best place for you will be Halifax as they are the only lender I know of that will treat you as if you have a 10% deposit and thus not charge a higher lending charge.

Even after having a quick look at the rates available for a 95% RBS mortgage you are looking at about 7.5%, for a 90% Halifax mortgage it is about 6.4% and you will save £1500 by not paying the higher lending charge.

You said your broker really confuses you, it shouldn't be like that! Their job is to make this easy for you, not make more work for you by making you go on here to do research they should know or at least be doing themselves. Now they are sending you to RBS for a vendor gifted deposit! -doesn't fill me with confidence. Maybe it's time to find a new broker.

porkiepine

Thank you James.

Our broker said that he had put through a mortgage promise with the Halifax and that they had come back with an offer of much lower than what we needed. I have spoken to them today and they are prepared to lend us what we need provided we pay off some of our credit cards and will be calling me tonight to put through a full application.

So I suppose all's well that ends well! Hopefully it will be sorted soon as the developer has started to question whether we are able to get a mortgage (the broker has been dragging his heels that long).

Thank you for your advice!

0james0

I'm glad its all looking good for you. If you need any other general advice just PM me.

porkiepine

Thanks James I will.

neverdespairgirl

porkiepine wrote: »

What do you believe is the difference between solicitors and barristers??

I'm one, you are the other?

sdooley

Barristers (should) be better at advocacy

Solicitors (should) be better at advice

Of course some solicitors are excellent advocates and some barristers excellent advisers (especially the commercial/tax bar).