90% Mortgage!!!

ukjoel

I have had two graduate mortgages and neither has ever asked to see my graduation certificate. Sometimes they are marketing ploys to keep hold of all the student accounts once they are about to earn some money and sometimes they are just another description of professional mortgages ie someone whose salary will increase rapidly within 10 years ie doctor, vet, accountant, solicitor.

Original poster asked for mortgage advice - not for people to say he was mad to buy a house. He may have negotiated a 50% discount for all we know!!!

iB1

woody252506 wrote: »

But then again in a years time who is to say they will have dropped that much so its value is 80k???!??!?!

Who would have predicted that we would be where we are now a year ago???

Its all guess work, things may get massively worse, they may not. We can afford it comfortably is my point and wont be bothered about negative equity as we are not buying a 1 bed place which we would need to get rid of when we have kids.

Me :beer:

disney_cjd

halifax seem to be doing 95 per cent

see money.co.uk

cheers

Met_Bobby

What happened to the days when people bought property to make into a home? It is not always about investment, is it? I lived in the first house I bought for 19 years whlist we raised our family. Fluctuating property values never came into it.

woody252506

Met_Bobby wrote: »

What happened to the days when people bought property to make into a home? It is not always about investment, is it? I lived in the first house I bought for 19 years whlist we raised our family. Fluctuating property values never came into it.

Thats my point.

IF we decide to go for the house we have seen that has been reduced by quite a sum then its perfect for us for the next 10 years + at least and we can comfortably afford it.

If we were buying a small 1 bed house or flat then it would be a different matter as in the short term we would be looking to move if we started planning a family.

pixiepie99

woody252506 wrote: »

Thats my point.

IF we decide to go for the house we have seen that has been reduced by quite a sum then its perfect for us for the next 10 years + at least and we can comfortably afford it.

If we were buying a small 1 bed house or flat then it would be a different matter as in the short term we would be looking to move if we started planning a family.

That's fine but don't say I'm right and then say something that completely contradicts what I said. Good luck whatever you decide to do.

beefio

Thanks for all the input here, but unfortunately no one has really answered my query.

I think most of the sentiment here is common sense, which we have thought through.

To give you some additional info, I'm 27 and this year my earnings were a basic salary of £37,500 plus a £15K NET bonus...hence the ability to finance a house purchase.

From March my basic salary is £40,000 plus estimated £10K GROSS bonus i.e. £50K. I’m a senior account exec for a niche insurance broker and my job is secure (as a job can be).

My partner is 25 and an English teacher at a good school, on a basic salary of £30,000 so her job is secure.

Our earnings will continue to increase ahead of inflation.

We want to buy a home to live in for the next 5+ years. We do not 'plan' to have children for another 5+ year, but the property has a second bedroom just in case...

The newly and sympathetically refurbished, grade 2 listed character property in a great location with rail/motorway links, was on the market for £340K and we are buying it for £290K. Three very similar properties in the square sold for between £300-£315K in 2006, therefore £290K represents a good buying opportunity for us.

We need a home, we've done our research and this market has created an opportunity for us, which we want to take.

Also Britannia advised me that the 'Graduate' offer was set up to help them on to the property ladder, as the burden of student debt is hindering a lot of graduates. It's not to do with graduate earning potential.

So, if anyone has any suggestions for 90% mortgages, your assistance would be very much appreciated.

Thanks

Stuart

pixiepie99

Have you gone to see a mortgage broker?

kieran1979

beefio wrote: »

The newly and sympathetically refurbished, grade 2 listed character property in a great location with rail/motorway links, was on the market for £340K and we are buying it for £290K. Three very similar properties in the square sold for between £300-£315K in 2006, therefore £290K represents a good buying opportunity for us.

Stuart - here's my advice for what it's worth...

This house doesn't really represent that great an opportunity at all. Use this - http://www.hbosplc.com/economy/HousePriceCalculator.asp to give you an idea of what a good price should look like. Then consider as well that it could very likely go down a further 10-15% this year.

You'll be in negative equity before the years out, with a massive mortgage at a high interest rate.

If it was me, I would save like hell - especially considering the money you're on - then in 9/12 months time who knows, you may be able to get this house or something similar for more like 240-250K AND be able to get a much better mortgage as with the extra you've saved + the fall in prices the LTV will be much better.

But hey, only you know how much you want that house, and sometimes that can make you not look at the sensible answer...

downhiller

poppy10 wrote: »

But they can't afford any more than a 10% deposit?

Where did the poster say they could only afford a 10% deposit?

He asked about a 90% mortgage. He didn't say if he could or could not put down a bigger deposit.

Again, this is a case of assumption before knowing all the facts, and countless posters offering advice on that basis.

Ask more questions.

Get more facts.

Offer advice.