What 1st time mortgage to get?

Frith

Helli there.

My sister wants to get her first home and will need a mortgage. I'm completely out of touch with mortgages and wondered if someone could tell me the options?

She earns about £26,000 a year and would have around £10,000 as a deposit.

How much could she get a mortgage for? Is there any sort she should avoid?

Thank you.

L

Cannon_Fodder

With £26k mortgage, she should be able to get around £90k mortgage, which coincidentally ties up with a £10k deposit, to make a £100k total purchase. i.e. 90% Loan-To-Value is the maximum you can get nowadays.

The sort to avoid is Interest Only, aim for a 25yr term.

poppy10_2

Avoid shared ownership too. It's a scam.

herbiesjp

Agreed with Cannon

She could potentially get a higher mortgage, but she would always need that 10% deposit put down.

Also, she would also need to make sure that whatever mortgage she takes out, is not only affordable now, but furtehr down the line when rates will be higher.

If she has other debts and/or bad credit history this will also impact on her mortgage potential.

tek-monkey

poppy10 wrote: »

Avoid shared ownership too. It's a scam.

Is this like some form of tourettes with you?