First time buyer

kiran413

I have seen a flat around £89000.I am earning £15000 and have savings of £30000.Abbey mortages have offered me £62000 of 6.29% interest rate of £415 monthly repayments.I am 22 years old.
do you fink they have offered me a good rate or not?
my other questions is that when you need to know who to get mortgage from.do you submit application or wot.coz when i called abbey they got all my details and after i checked my credit report,that showed they checked my credit file.so can some1 tell me how to find best rates without having been checked credit file each time.does it happen with every1

Any advice will be appreciated.

trackaccessgirl

When I was looking, I went to Bradford and Bingley (a mortgage broker). It was free and I made out I was going to take a mortgage through them. Basically, they then search tonnes of banks and building societies and find the best rate that YOU can get. They show you the rates of all the different places, including banks that may have special deals for first time buyers.
Is that rate you have quoted fixed?
I think you can definitely get a better rate, HOWEVER you are borrowing almost 6 times your salary, and so most banks will not lend to you. At the time I bought Nationwide had the best rate, but would not lend to me as I wanted to borrow just 5k over what they were prepared to give.
There are links on this site where you can find comparisons of the best rates on mortgages. Charcolonline is one but have a look in the mortgages section for others. However remember that many will not lend you 6 times your salary.

Tassotti

OP Has 30K deposit, so only needs to borrow 4 times salary. The rate you have been quoted is extortionate.

You can compare mortgages without having to apply for them. Here or moneysupermarket are a couple of sites and there are many more.

You should be able to get a mortgage for below 5%, dramatically reducing your monthly payments.

AndrewSmith

Hi,

Bradford and Bingley have a very limited market access.

If you click on the link below, click Terms Of Business, and read section 3 mortgages they explain this themselves.
http://www.bradford-bingley.co.uk/legals.asp

3. Mortgages

3.1 We arrange mortgages from a limited number of mortgage lenders.

I would therefore suggest that if looking to use a broker, use on that is 'Whole of Market'.

What rate you will be offered will very much depend upon your peronal circumstances however if you have no adverse credit history then there is no reason why you should not be able to secure a deal way below 6.2%!! That said however, it depends on what you asked the Abbey for.

When asking a mortgage broker to search a product for you,if you then proceed and take that product via the broker it has the following benefits for you:

1) You are fully protected and indemnified against the advice given.
2) You have full recourse for mis-sale should the product be unsuitable.
3) Paperwork all completed at your convenience without having to take time off work or visit a branch.
4) All the chasing and administration is done by the same person thus one point of contact.
5) You may get a product that is not available via the high street route.
6) Access to over 14,000 mortgage products and a solution tailor made for you.
7) There is no extra cost to you, as most brokers a paid a commission by the lender at completion.

If you simply take the advice of the broker then go direct to the lender you have very limited consumer protection, and have no recourse for mis-sale or if you feel the product is unsuitable.

At the end of the day if a broker can offer you the same if not better mortgage than available on the high street, and complete all the paperwork with you etc, what possible reason would you have to not use them?

I would suggest seeking further professional advice as I feel the product you have been offered is not the cheapest they have.

That said, it does all depend on your circumstances which that Abbey are privvy to, we are not.

Hope this helps

Andy

kiran413

I have no adverse credit history and i live in london.so does any1 know any good mortgage brookers.wot else do i need to know to apply for mortgage?

MortgageMamma

Kiran is doesnt really matter where you live, you can get help from a mortgage broker over the phone, this can sometimes work out cheaper too. As andy said, a good whole of market broker should be able to help you out with the mortgage, and explain the buying and legal process to you too.

HTH

MM

meanmachine_2

Abbey seem very uncompetitive at the moment.

Putting the OPs details into the Alliance and Leicester compooter, gave me a loan of 65K at a variable rate of, potentially, 4.44%.

But that was with no debts, dependents etc.

I'm impressed that you are just 22, earn 15K and have 30K in savings. What's your secret?

AndrewSmith

Nationwide's affordability model will take you to just over £63,000 on a tracker rate of 4.37%, with monthly payments based on 25 year repayment mortgage of £340.00 approx.

Subject to asessment by the lender of course.

Andy

lynzpower

Kiran

I can recommend alexander hall as an all of market broker in london . Offices round bank, and chiswick I believe. very professional & thorough. Helped me get my head around whats what, nice to deal with an actual person if you are worried about the process. and you will be able to get something cheaper than that. they are all of market and can find some pretty nifty deals. Best of all free to the punter, they take thier cut from the lender!

[/url]http://www.alexanderhall.co.uk/

kiran413

Thanks for all the advice and help you have given me.i really appreciate.i would try to pay the mortgage as soon as possible so i don't pay extra interest.other thing is that if i apply as joint account with my sister who is studying at university but she doesn't earn at the moment anything.she is gonna get higher education loan for her living costs which would be £7000.she decided to stay with me instead of paying rent somewhere else.will that help my application if i include her.any suggestions would be appreciated.
Anyway thanks once again

lynzpower

I dont think it will be a good idea to include her, as a loan isnt classed as income. Plus she will be entitled to half of the property even though you are the one buying it. If you buy it you can rent a rooim to her if you wanted, but overall, the flat will remain yours.
jusat my opinion, but it seems you are pretty good & savvy with money, and the deposit is yours. If you buy in with her adn she decides to sell up, you coud, end up a bit stuffed. Similar to getting a divorce really in conveyancing terms. Also how would that work if you wanted to overpay? if its not all written down legally, she could end up with half of your hard earned cash.
I dont think it would make any difference to your application as AndrewSmith says, you could get a good deal on your own.