Take the Plunge?

WavyDavy

Hi, wondered if we could get some advice re our current situation.

My girlfriend and I were quite happy tootling along renting our city centre flat when we discovered that we were pregnant! Not being a planned event (welcome though it is) we are not really in a good position to buy a house (i.e. no deposit saved) but feel that we really need to get a place of our own before the baby is born (think we might have our hands full after that!).

Our only option seems to be a 100% mortgage and we are looking at borrowing around £165,000. We have done a bit of shopping around and have found a mortgage from Co-op which is fixed for 3 years at 5.24% then reverting to standard variable rate (currently 6.14% which seems fairly competitive).The monthly repayments are £990 which are affordable for us.

Is this about the best we are going to get, or is there anyone else we should be looking at for a good deal in our position?

Thanks for any help

herbiesjp

What are your two incomes?
What are your two occupations?
HAve either of you graduated from a UK university?
Do you have any other liabilities?

Is your gf going to go back to work? Otherwise have you considered affordability after the happy event?

Congratulations by the way and hope that everything runs smoothly for you

meanmachine_2

How does the £990 figure compare to your rent now? More importantly, how does the £720 on an interest only mortgage compare to your rent?

If you're paying less than £720 right now, I'd suggest you stay put - particularly if you're moving from a two income to a one income situation.

It's up to you. 5.24% for a 100% sounds fairly competitive.

Just don't buy a new build flat with it, or you're likely to be in negative equity for a few years.

But it's up to you, and hope the pregnancy goes OK.

MortgageMamma

Lovely news! oh I soooooooooooo love babies they smell gorgeous -and I have loads of my own.

You need to take professional advice as its important you get your financial planning right first time with a little baby on the way. A fee's free whole of market broker is your best bet. There are lots of 100% deals on the market, I'm sure something more competitive than that can be found, but as herbie says you need to disclose more details to an advisor before any real advice can be given.

Congratulations!

Lisa

Wickedkitten

Yeah, that's the thing I'm thinking about. Obviously after the baby is born, you will be on one salary so can you afford all of the bills just on your salary?

You are already going to be paying extra just from having a baby.

WavyDavy

Wow, you're all so quick!! Thanks for all your congratulations too!

Didn't put all the info on the first post as I though people would be nodding off!
Anyway here goes;-
Herbie
1) My income is C£29.5k (that is basic but I am in sales and earn up to 15% commision on top of that each year) and my GF is a nurse on C£20.
2) She is a graduate, I am thick!
3) We are paying off a loan at £150/month with 2 years remaining and have credit card debts of approx £2k (were coming down but all spare cash has been put to one side to cover fees etc over recent months). Our current joint take-home income is £3k/month
4) She will be going back to work, as soon as we start to run out of money badly!

Meanmachine (Burt Reynolds or Dusk till Dawn?)
We are currently paying £750/month rent plus all bills etc
Thought about interest only but I'm not comfortable with the concept really - if someone wants to make a case for them then I'll listen....

Any advice (or broker recommendations in Manchester gratefully received! - {is there any reason why a broker needs to be local to you anyway?})