FTB...Advice wanted!

maisymoo77

Hi

Myself and my partner are FTB's. We have £7k saved and have been okayed for a mortgage of £128000 fixed for 2 or 5 years at 6.79%. We have seen a house that we like on the market for £135k. Any advice welcome re: what to offer and whether it is wise to fix on this rate?

Thanks in advance:)

pandamonia

i think you need £13500 deposit or you shouldnt be looking at all.

6.8% you must be insane

maisymoo77

Thanks for you rspeedy response Pandamonia. We have been approved for a graduate mortgage with HSBC for 95% giving us the mortgage for £128000. With that in mind, what would you advise as an initial offer?

febop

we have the same interest rate its a bit of a killer but at least you can get a mortgage!did you go through a broker or on your own? I'm not too good on offers (as i had to go to asking eventually:) but has it been on for a while?are there any other houses for sale on the road?

maisymoo77

We know the interest rate is high. We approached HSBC independently. The house has only been on the market for about 5 weeks and it is the only one in the street for sale.

pandamonia

maisymoo77 wrote: »

Thanks for you rspeedy response Pandamonia. We have been approved for a graduate mortgage with HSBC for 95% giving us the mortgage for £128000. With that in mind, what would you advise as an initial offer?

i dont think you understand the danger of taking out 95% mortgage with almost no deposit. You will be in negative equity for a long time if prices continue to slip.

those morgage payments are nearly £900 per month! Even after 5 years you will owe over £116300 still. if houses fall then you might not be able to get another mortgage or move home. the bank can also demand extra money from you to cover NE.

Marcheline

Hi OP, I agree with Pandemonia: you should definitely save more than £7k before you even begin looking.

pandamonia

if you and your partner split up then you wont be able to sell the home and you will lose all you put into it. you should aim for 10-20% deposit as a bare minimum, do you know what the houses on the street sold for recently? or what that house was bought for? what area is this?

zone

Your rate is a bit high. What type of property is it and the condition? But for a guess i'd make an opening offer of perhaps £105-£115k.

maisymoo77

It's a modern semi in excellent condition. I too thought the rate was too high. Thanks all for confirming my thoughts!

longtimelurker_2

What we're doing is: save save save. The more you save, the less you repay - and by a disproportionately huge whack.And we're not doing anything to expose ourselves to the frankly crazy interest rates (and wouldn't want to gamble with a fix)