First Time Buyer - Help Please?

shane8960

Hi,

I am hopeing to buy a house shortly with my partner. I earn about £13,500 and she earns around £9,000. We dont have a deposit at the minute, but could get a £5,000 deposit together. We ideally want a house for about £100,000. We do not mind having the mortgage over 40 years but no longer. Some friends have recommended getting a 100% mortgage and keeping the deposit to help through the first year? I am basically looking for some advice on weather it will be possible for us to get a mortgage we want, if so what sort of mortgage people recommend? Also any companies that will lend to us? I am 21, she is 18 (we been together 4 years now).

We have looked at a shared ownership house (50% share @ £50,000) but it will end up costing is £450-£500 a month which Im sure we could get a mortgage for the full house over 40 years for about the same.

Anyway, any advice/guidance appretiated.

Cheers, Shane

bluekp

My boyfriend and I bought our first house last year. We found the best mortgage for us was from Alliance & Leicester - fixed for 5 years at 4.99% (think the same mortgage is now fixed at 4.79%)

They have a mortgage calculator on their website - though they will often lend you more than the calculator indicates anyway.

If you aren't putting a 10% deposit down then I think most companies charge a HLC (higher lending charge) which can often be added onto your mortgage but then you'll obviously end up paying interest on this too.

If you can I would use the money as a deposit and get the lowest mortgage I could.

Good luck to both of you

:j

shane8960

bluekp wrote:

My boyfriend and I bought our first house last year. We found the best mortgage for us was from Alliance & Leicester - fixed for 5 years at 4.99% (think the same mortgage is now fixed at 4.79%)
:j

Cheers, Just checked there site and they will lend us enough (more than we need!).

Another question which might sound a bit stupid, all of the fee's that we will have to pay, will this be in with the mortgage? or will we have to pay it out of out own money (deposit)? Also roughly how much are all the fees assosiated with buying a house?

Cheers again, Shane

zag2me

Usually comes out of your deposit, My mortgage had no fees, but the solicitors cost about 1,000 quid again which came out of my deposit.

bluekp

Hi again,

Fees, here we go....

A 5 year fixed rate mortgage with Alliance & Leicester has a product fee of £495.00.

You need a valuation survey carried out on the property which Alliance & Leicester charge £245 for a property not exceeding £100k value.

(I think you can add both of these to your mortgage - but again you'd end up paying interest on themt)

If you are borrowing 90% + of the value of your property then there is a higher lending charge which can definitely be added to your mortgage - I'm not sure how much this is though.

A rough quotation of the solicitors fees for buying a house worth £100k is shown below:

Purchase for the sum of £100,000 in England or Wales


Purchase fees £ 395.00
Value Added Tax @ 17.5 % £ 69.13
Searches etc (approximate) £ 200.00
Bank transfer fee £ 30.00
Value Added Tax @ 17.5 % £ 5.25
Indemnity policy contribution £ 30.00
Value Added Tax @ 17.5 % £ 5.25
Land Registry fees £ 100.00
Stamp Duty £ 0.00
Total Amount £ 834.63

Do shop around for your solicitor - they don't have to be located near you as you normally don't need to ever visit them - everything can be done by post.

Any more questions, just yell!

Kelly

Forgot to add - we paid our fees and solicitors charges separately (they didn't come out of our deposit)