First time buyers: general mortgage advice needed

t_ferrino2k

Hi,

First off, please forgive me if this is the wrong place to post to.

My partner and I are 35 and 31 respectively. We both earn around £30k per annum and are currently renting individually (I'm paying £725 and she's paying £650 per month).

We have decided to take up her parents' offer of selling their property (previously owned by my partner's grandfather) to us at a very good price. The property - a ground floor, 2 bedroom maisonette in Surrey - had been on the market for £179,000, but we can buy from them at £150k.

I do not have enough in the way of savings to contribute to the deposit, so we will have it in writing that my partner will be paying this (expected to be around £22.5-23k), with the remainder being approximately £128,000.

My partner has loan payments going out each month and I am repaying a student loan, but our incomes are still very healthy.

A solicitor, who is a family friend, is only going to charge us a nominal fee for the essential documents that need preparing, which is an added bonus.

Finally to my question or more in the way of looking for advice. We are due to see a mortgage advisor from Lloyds on Friday since my partner banks with them, but I realise we shouldn't say yes to anything prematurely.

I have read countless guides and checked out online comparison sites for mortgage brokers, but need some advice on what mortgage might suit us best and possible companies to concentrate on, rather than just going for the convenience of a high street bank, especially as we could end up paying out a lot more than we need to. I realise we will need life assurance and am just starting to read over the guide on MSE.

I hope I have made sense and not come across as too vague. Even a few supportive words or some such would go a long way to negotiate this minefield!

Clearly, this is a great opportunity for us both and we are unlikely to ever get as good a chance to get on the property ladder as now, especially in the current financial climate.

Cheers,

Paul

JayZed

Paul, it's important to understand the difference between a tied mortgage adviser (e.g. the one that you'll be seeing at Lloyds), who will only talk about the products offered by his/her bank, and an independent whole-of-market adviser, who can help you to find the best product from any lender. The latter will be far more useful to you than the former.

Whether or not it's necessary to see a mortgage adviser at all is another question - it's not essential, but it's certainly not a bad idea if you're first-time buyers and unfamiliar with the mortgage market.

Don't let that stop you doing your own research, though: this site is a good place to start, and have a look at "best buy" tables in the newspapers and on sites like moneysupermarket.com (though be aware that this site and some other best buy tables don't take into account certain things like the cost of arrangement fees). Also have a look on the websites of the major banks and building societies - you can compare rates, and most have mortgage affordability calculators that will give you some guidance as to what you can borrow.

Robert_Sterling_3

Here are some supportive words:-

Your post is one of the very best I have ever seen.
It puts us in the picture in almost all respect except one.
You did not tell us the magnitude of any outstanding debts.

I am sure some of MSEs regular posters will offer suggestions later today.

Good luck to both of you.

Robert.

t_ferrino2k

Thank you JayZed. Simple, but very good advice. Much appreciated.

Robert > My partner spoke to someone briefly last week at Lloyds and they did take into account her having a bank loan with them (for a car). I believe she only has about a year left on it. It was £4000 over 2 years. Not sure of the monthly repayments with interest though. Will find out.

Apparently the person concerned said - with very basic figures for income/outgoings - that repayments on a £128k mortgage would be around £820 p.m.

I am repaying a student loan of £4000. I believe I am paying off about £120 pm, which comes out of my pay automatically each month (leaving about £1750 per month going straight into my bank account).

Robert_Sterling_3

Thanks for that.