Completely new on mortgage / buying house and need some friendly advice plz

alien123

Hi everyone,

I would like to ask you much deposit will I need to put to the seller for a deal that I am interested in?

Secondly, I understand we need 20% deposit to borrow from banks. If no banks will lend, will I lose 20% of all my money or the initial amount that I put towards to the sellers to hold the house.

Many thanks for your help

~Beanie~

You don't normlly pay the sellers an initial amount to hold the house, you just need the 20% deposit that the lender is asking for. If the mortgage gets declined, you shouldn't lose anything.

alien123

That's a big relieve. At least do not need to lose anything. How about any other hidden cost if I got declined eg. Estate agent commission? Sorry to be stupid. Just a bit cautious for my first place

happybroker

The estate agent doesn't work for you so you wouldn't be hit with any costs at that end. Your mortgage advisor will go through exactly how much you have to pay out and when and what is refundable or not if it all falls through.

alien123

Thank you very much. I saw some new buttons here. Have anyone tried it?

Soot2006

You would loose survey money if for some reason the loan was declined or the sale feel through after the survey + maybe a booking fee + any solicitors fees that

Always go with a mortgage broker who doesn't charge you directly for his services.

knithryn

You can always pop into your bank/mortgage lender and find out how much they are going to allow you to borrow. They will tell you the different rates of interest, how much it will cost each month, how much deposit you need. You will need information such as what other loans you have, overdrafts, salary, credit cards etc. They can do a credit check there and then...and let you know what is available.
You will find that the more deposit you have the better the interest rate you will get.
It will cost you nothing to go and have an appointment and a chat. Then your mind will be more focussed.

IRWM

Hi
I totally agree with Happy broker. Speak with an IFA or mortgage broker about your needs and they will explain everything you need to know. Lending requirements, income multiples, non refundable charges etc etc.

If you deal with an Independent mortgage broker or Financial advisor they have the added benefit of being able to search the whole of the market for the best rates / deals etc and not be tied to a particluar lender / provider.

If you go to the bank you could be just advised on their products and you will inevitabley speak to a sales person rather than an advisor.

Just a generalisation ofc and my humble opinion.