Help please

samuela66

Hi,

I have seen a house I am interested in, the house is up for 129,000 just reduced by 10K, now I have about £72,000 in the bank from a sale of a house about 2 years ago, obviously I would like to keep a little of that for emergencies etc....
I have been looking through these mortgages on offer and am totally baffled, I earn 17K and live alone, does anyone out there know of a mortgage deal that would be good for me!!!
ps i am 42


thanks
Sam

_Andy_

You would be best off speaking to a good whole of market broker.

Peelerfart

Why not read the guides on this site and decide what it is you need.
Mortgages can seem complicated but they're really only a big, special loan.
Most people seem to be going for a fix rate these days but this may not be suitable for you.

Read,ask and learn, but if after doing that you still cannot decide what is right for you then ,Andy is quite right, consult a broker.

This may cost you money but you may consider it money well spent.

Good Luck

PF

Joe_Bloggs

Here is one scenario. You have a property for 129000 and you put down a deposit for £70000. Thus you have to find a mortgage for £59000. This would require a ratio of mortgage to income of 3.5. If you could get 5% over 23 years then you would be paying £360 a month in repayments. A rate of 6% would be £395.
Edit:- if retirement at 60 was a consideration then 5% would be £415 and 6% £448.


There may be scope for the price of the property to be reduced further if there are no potential buyers. A buyer without a chain may be worth something.

The fact that hurt me for so long was my salary. As lenders use a salary multiplier (say 3 to 3.5+). It did not help to have a low salary. Eventually I was able to earn more and get a mortgage.

If you do not understand mortgage terminology then make a note of what you do not understand and ask the question. You should understand what you are signing up to.

The MoneyMadeClear by the FSA may be helpful in explaining terminology.
J_B.