First Time Buyer Advice Needed

Pleasehelpme

Hi All,

I'd be grateful for any advice anyone could give me concerning a mortgage application that I am seeking to make.

I currently earn £45,000 a year and save approximately £1,500 a month. I have just over £25,000 saved as a deposit and am looking to buy a new house for approximately £135,000 in North Wales. I would therefore have to obtain a mortgage for £110,000.

My questions are concerning the following facts:

1-I have only been in my job since January of last year but received a letter stating that my probabtion period had been met in January of this year. There is some restructuring taking place and the future (as for most people) looks uncertain;

2-I have been renting since last January but have only been on the Electoral Roll since last December;

3-I do not have any defaults/CCJS and the only debt that I have is a loan taken out 2 years ago which has £8,000 remaining on it.

My questions are:

1-Is it considered that I should build up a higher deposit (to make my mortgage application more likely and also reduce the overal mortgage payments)?

2-Should I pay off the £8,000 outstanding loan before applying for a mortgage? or use it as part of the deposit.

3-Am I likely to obtain a mortgage (and a first-time buyer who has just turned 40) or should I wait a little longer until this improve?

4-I am looking to purchase a newbuild in North-East Wales. Does anyone of any good deals in this area?I am conscious of the fact that rejected mortgage applications have a knock-on effect short-terms so I just want to get things right.

Any help concerning these questions would be very much appreciated.

Thanks.

TEDDYRUKSPIN

So many questions: LOL. Grrrr..............

1-Is it considered that I should build up a higher deposit (to make my mortgage application more likely and also reduce the overal mortgage payments)?

(A). As long as you have around 85% LTV (i.e. 15% deposit) for a new build you will be fine.

2-Should I pay off the £8,000 outstanding loan before applying for a mortgage? or use it as part of the deposit.

(A) If you can I would always suggest doing this but if this affects the size of the deposit percentage you must think again?

3-Am I likely to obtain a mortgage (and a first-time buyer who has just turned 40) or should I wait a little longer until this improve?

(A) You should be able to get a mortgage still. Planned retirement is now set at 67 yrs old and depending upon when you retire you could get up to 26 years term max.

4-I am looking to purchase a newbuild in North-East Wales. Does anyone of any good deals in this area?I am conscious of the fact that rejected mortgage applications have a knock-on effect short-terms so I just want to get things right.

(A) Any newbuilds in the area? Or mortgage rates? LOL. Suggest you use a IFA for the latter. Newbuilds? No clue.

Finally......

1-I have only been in my job since January of last year but received a letter stating that my probabtion period had been met in January of this year. There is some restructuring taking place and the future (as for most people) looks uncertain;

ANSWER: Uncertain? Meaning redundancy? Should you be actually buying until you are safe? How easy can you get a new job? Have they already spreaded rumours throughout? Any letters?

If so..... don't buy yet! Rent!

Pleasehelpme

Thanks TEDDYRUKSPIN

I just have some further questions for clarification.

2-Should I pay off the £8,000 outstanding loan before applying for a mortgage? or use it as part of the deposit.

(A) If you can I would always suggest doing this but if this affects the size of the deposit percentage you must think again?

(R) Yes it will reduce the deposit but I will still have 15%. Should I pay it off do you think?

3-Am I likely to obtain a mortgage (and a first-time buyer who has just turned 40) or should I wait a little longer until this improve?

(A) You should be able to get a mortgage still. Planned retirement is now set at 67 yrs old and depending upon when you retire you could get up to 26 years term max.

(R) What I meant was will I be able to obtain a mortgage in today's climate? I don't want to apply and have a rejection that will effect further applications.

4-I have only been in my job since January of last year but received a letter stating that my probabtion period had been met in January of this year. There is some restructuring taking place and the future (as for most people) looks uncertain;

(A) Uncertain? Meaning redundancy? Should you be actually buying until you are safe? How easy can you get a new job? Have they already spreaded rumours throughout? Any letters?

(R) No I do not have any letters and I am not likely to be made redundant but things are still uncertain and it would be tricky to find another job within 6 months but am anxious to get out of rented accomodation. What I meant was is that 1 year in current (although 20 years employment in total) position be enough and might it be an idea to get the mortgage now even if I had to move elsewhere?

Any help would be very much appreciated as I feel I am in limbo.

Thanks.

Pleasehelpme

Does anyone have any ideas?

herbiesjp

You should be fine with a mortgage, with or without paying off the debt.

However the factor that could go against you is the fact the property is newbuild. And so the bigger the deposit, the more options you will have open to you.

Lenders have all got their own criteria (in relation to deposit needed and build type), so your best bet would be to chat to a whole of market adviser and see what they can find you based on what you are comfortable with.