Mortgage Advice. First Time Buyer 'professionals'

suisidevw

Morning all,

Just after a bit of advice really, anything that can help whatsoever would be great as I'm a novice at the housing game. I'll set the scene,

I'm 25, my wife is 24 and we have been renting a house for 6 months since we got married (£650pm) in Cardiff. We are thinking about buying a house in the next 6 months or so and our figures are as below. At present we haven't spoken to a financial advisor and have heard from friends that approaching banks/organisations directly often is the best idea for attracting the best mortgage.

My wife is in a 'temporary position' within Cardiff Council however this has been 'temoporary for over a year adn will be at least another year until the restructure and I'm 98% sure she'll move into a permanent position then. I am in permanent work.

Our joint annual income is about £40k.
Our deposit for a house is about £31k.
Our savings, ISA etc is about £10k.

As we are still relatively young we are happy to spread our mortgage over as many yeras as possible, say 40 or so if this is possible and we are hoping to look at houses up to the value of £175k. Is this realistic or are we in cloud cookoo land?

Any help/advice is most welcome.

Many thanks,

Sam

Conrad

Sam


Lenders will take a view on the temporary nature of her contract. AIPs will not tell you whether a lender will proceed - you need a Human underwriter to assess your case in full.
The difficulty for lenders here is whether a loan will be deemed to past the responsible lending test.

Imagine this Daily Mail headline - "Evil lender to repossess even though they knew she was only temporary".

By all means approach a few lenders direct and have each one underwrite your case - you'll need a bit of time to do this of course. Again software based agreement in principles are meaningless in this context.

I've found a few lenders accept such cases in the past, but youre freinds indicate they know best by going to lenders direct so I guess you should follow thier advice

suisidevw

Thanks very much for that Conrad. I don't know if my friends do know best?

Yes, completely understand what you mean about the temporary nature of her job. Would a guarantor help back up our 'mortgage application'?

Woudl this be better in House buying section etc?

herbiesjp

Based on the figures the application will be fine

Well done on the deposit

I think the length of time you wife has been there will help a lot as well

Rather than going direct though, I would go via a broker who would find out verbally from the lender first that that they would be happy with her employment status

suisidevw

Cracking, thanks for the advice. Am I right in saying that the brokers will take a cut off the top rather than us pay them for an hour of their time etc?

herbiesjp

Some charge fees

Others do not ,a nd will take only a commission from the lender

BTW - it takes more than an hour to get a mortgage done from start to completion

opinions4u

suisidevw wrote: »

As we are still relatively young we are happy to spread our mortgage over as many yeras as possible, say 40 or so if this is possible and we are hoping to look at houses up to the value of £175k. Is this realistic or are we in cloud cookoo land?

Some good advice already.

When you get quotes, price up 20 years, 25 years, 30 years, 35 years and 40 years.

The reason I say this is that 40 year terms rarely save you as much each month as you expect.

Shorter terms give you the discipline needed to get debt down faster.

To be mortgage free at 45 is a blessing. To have 10 years left on your term at 55 when you really want to retire is horrible.

To be mortgage free when your kids reach university is utopia. Could you aim for this?

Ask people in those age groups what they think.

JayZed

Do you really need to spread the mortgage out over 40 years? Given that the amount you want to borrow is 3.6 times your joint income, it should be affordable on a "standard" 25-year mortgage. If you extend the term of the mortgage it ends up being a lot more expensive.

kier333

My advise would be stay well clear of Mortgage advisors, only last year i was being told how i needed to be in a fixed rate as interest rates would rocket. In the end i did not take his advise. I spoke with another advisor who could not arrange anything for me however i have a Mortgage now with HSBC.

I would advise you try your own bank first.

AverageJoe_4

Yes agreed with kier. Don't forget though, everyone is after your money beit brokers, "advisors" and the banks. They are profiteers first, advisors second.

Tread carefully and dig deep. The best deals are the ones aren't meant to be found.

dimbo61

I am not a mortgage adviser and other posts calling them is not fair because who in gods name knew that the BOE rate would be 0.5% last year !
If you can put down a 25% deposit on your £175,000 home then if you get the post office 4.15% fixed rate deal for 5 years fee £599 you would have security for the next 5 years and a good deal.
Now as I said I am not a mortgage adviser so you may well get turned down by the POST OFFICE because you dont fullfill there lending rules so you may well be better off looking for a broker but thats up to you GOOD LUCK