FTB with 25% Deposit - Mortgage advice please..

Gompo

Hi..

Been living back with my Mum (very convenient on various fronts) after renting for a while but decided to take the plunge. I'll be 26 in a few days. I've never applied for a mortgage and dont really know where to start.. I dont really know what I need to provide but here are some rough stats. I'd probably be living alone, atleast initially.

House price: £90k
Deposit: £25k (Yes I know that's more than 25%!)
Income: £18k
Term: 25yrs or less

I want a full repayment mortgage, preferably one where I can over-pay. Not sure on fixed rate etc, whatever I can get basically..

I've managed to save my deposit from basically not spending a lot for the past 5 years or so. I am good with money/tight! I have been in the same job for this period (with a 6 month break). My job is relatively secure as far as I know, but I get paid hourly. Work between 50-60 hours per week. Had one credit card but never used it, never been in debt/overdrawn/had a loan etc.

..Basically I want to know IF somebody will take me on (I'd like to think I am quite low risk), and if so who I am likely to get the best rate with? I could possibly provide a bigger deposit, but would like to keep some back as a contingency. My mother has said she would help/be a guarantor if needed, but she is 57. Has no mortgage though.

..If I lost my job or whatever, I'd try and rent the property out while moving back in with my Mum

Anyone with help or advice? If it makes any difference, most of my deposit is in a 30 day postal account with Nottingham BS. My mum suggested I went there first to apply for mortgage?

Anything suggestions would be of great help.

Cheers, Greg..

Gompo

Anyone? Anything would help, just a 'good chance/no chance' would do initially!

LiGhTfasT

Im in a simular situation as you but looking to buy with the girlfriend who has no deposit and a income of 7k so not much use lol. I'll be looking to spend around 100k with a 30k deposit. Im a few weeks from my 25th birthday and still at home, i've got to the stage where i need out lol.

I cant see there being any trouble for us, other than the lack of decent properties on the market. It seems im left looking at the crap nobody wanted in 2007.

LilacPixie

go speak to an independent Mortgage advisor. They will take you through everything and will tell you if you are being realistic.

confused31_2

I would look at nationwides tracker for three years for ftb at a rate of 4.18% and a fee of 299 pound, its a great deal for ftb's especially if you can switch and fix.

What nationwide do is a switch and fix so if you see the rates start to go up you can switch onto one of their fixed rates, usually for a small fee.

with the figures you have give your payment would start of at 349 pound a month, i would take a look on their website and put your figures in.

If the fees where lower i would try and fix for 5 years, but has your mortgage is so low it might not pay you to, i would give them a ring and see what they have to offer you.

http://www.nationwide.co.uk/mortgage/firsttimebuyer-withproperty/apply/

lethal0r

you sound like me except 2 years younger (jealous). my plan is to check out the best deals on price comparison sites. then go direct to 2 or 3 lenders - hsbc, yorkshire bank, maybe natwest - basically whoever is in my town! then ring a whole of market broker to see if they can beat the best of those.

you'll be able to get a mortgage with those figures, in principle at least! i except most lenders would offer you something.

herbiesjp

You should be ok with those figures.

What can go against you sometimes is the fact that you may not have enough credit history to reach a high enough score with some lenders. However there are normally extra pieces of information that can be given to lenders to satisfy requirements.

Being a first time buyer you would need to get comfortable with the mortgage payments going out, so a fixed rate may be a good option for you

dimbo61

The BOE base rate is 1% at the moment and it will rise in the next year or two so I would look at a good 5 year fixed repayment mortgage with a local building society that allows overpayments.
I also like offset mortgages if your mum can help by putting some of her savings into ( her own ! ) offset account tied to your mortgage ( see Yorkshire building society offset plus ! )
Taking a long term fix gives you time to repay some of the mortgage and build up equity in your home as well as the security of knowing what your mortgage payment will be every month for the next 5 years. GOOD LUCK

Gompo

That's a bit more like it - Thanks very much!

Been saving for the past 6 years or so, will be nice to finally get this underway so I know what I can and cant afford to do..

Cheers, Greg.