1st Time Buyer - advice appreciated

BeckyBloomwood_2

Hi. I am 29, looking to buy on my own. I earn £41.5k and I have a £10-£12k deposit.....I also have a few late payments of cc's showing on my credit history? I have a loan that finishes in a couple of months, never missed a payment.
Will any of this affect me getting a mortgage. Looking for about 100k

Also, the mortgage quote I was given was for 7.something% is this standard for first time buyers? this makes the repayments between 650 and 700 a month, which I can afford, but it sounds very high.

Any advice? Thanks is advance:beer:

genuineplacebo

I work for HSBC and will try and help as best I can.

Generally most companies at the moment lend in the region of 3.5x your salary, so you should be able to borrow at least what you need. The rates vary from lender to lender. HSBC has rates at the moment purely for people with 10% deposit who are buying houses which are in the region of 6% for a 2 year fixed - a booking fee, valuation fee and completion fee would appl.y

The late payments on the CC's shouldn't effect your credit rating too badly as long as they were just late and the payments are now made up - if you're still in arrears that could cause a problem.

The loan you have at the moment would effect the amount you can borrow, as this payment is taken away from the amount the lender can lend as a mortgage payment. However, if it finishes before the mortgage would start it generally isn't worried about when doing the application.

Hope this helps!! Need any more help and I'll try and lend a hand!

g_attrill

The borrowing multiple (against your salary) will be low so you have that advantage, you could borrow £160k on your salary, but obviously your deposit is not high enough for that. Not sure about late payments, I think it will put off the lenders only looking for super-clean borrowers, other replies might be more specific.

That you are a FTB doesn't really make any different to the rate as such, the FTB mortgage deals are normally just structured differently with lower fees to make the purchase cheaper initially.

If you can save a higher deposit it would help a lot, aim for 15% minimum to get the better rates, the 90% deals are really expensive!