First time buyer's!

Steevee

Hi All,

Currently looking at purchasing my first home with my girlfriend.

We've both recently graduated and secured jobs and also have approximately 14k for a deposit and are looking at the 140k region. (Yet have seen a house for about 126k)

Our salaries total approx. 42k at the moment.

We've been to a few banks (HSBC and Abbey) and got a few quotes but compared with quotes i've been finding online from sites such as MoneyNet.com they seem rather high.

HSBC had a 90% mortgage on a 126k house (113,400 loan) at something like 6.1% fixed for 3 years and then onto their variable rate after which worked out at about £730 p/m ...

However i'm looking online and have found one with the Llyods bank at 4.99% at 3.5 years (about £608 p/m)!

Setup fee's are identical.

The difference then obviously is quite substantial, and from looking at the details surrounding both mortgages there seems to be no hidden catches (although i've only seen 'online details' for the Llyods mortgage).

Anyway, I guess i'm not really asking much of a question above, just that i'm shocked of the difference - sooo - any advice as to who to go to for a first time buyer, who the best lenders are and who have the best added extras?

Quite confused and overwhelmed at the moment! Sorry for the ramble.

Thanks,

g_attrill

If you can find that extra 5% between now and finding the right place, then there are a lot more options available, the 90% mortgages are still quite scarce and the lenders careful about who they lend to.

Mrs_Bumble

As above 90% LTV mortgages are relatively few and far between because of the risk associated with high LTV.

The Lloyds deal that you have seen is it their lend a hand scheme? If so then it is a more complex deal than it looks, as you have 10% deposit a relative of yours would need to have a further 10% tied up in savings with them for the 3 year period. It is also a stepped fixed rate and increases have a look
http://www.lloydstsb.com/mortgages/lend_a_hand_3yr_fixed_rate_mortgage.asp .

It is worth noting that if it is a new build that you are looking at that they will only go to 80% LTV.

I think RBS had a first time buyers deal recently.

If I was you though I would increase my deposit and give myself lower borrowing and more choice of lenders.

herbiesjp

The deal does indeed look like the lend a hand option

So read carefully, as you only need to put down a 5% deposit, but a helper has to put away 20% in one of their accounts