First Time Buyer's Guide To Mortgages

agrajag_2

jellyjelly84 wrote: »

Hi, I was wondering if anyone can give me some advice, My partner and I are first time buyers and have been thinking of buying a place together for sometime; anyway, yesterday we went to view some properties and we both really really liked one of the houses and so the estate agent has put us in touch with a broker who is going to call me tomorrow.

The estate agent was hopeless - she couldn't answer any of our questions, she just kept refering us to the sheet she'd given us, anyway! One thing she did tell us was that it is important not to 'insult' the seller by offering them an unrealistic offer. The house we like is for sale at £95,000, it's a large 3 bedroomed house with loads of potential, but it also needs a lot work. From what we can gather, an elderly couple were living there and one of them has passed away and the other has gone into a home (so sad!) and a family member is selling the house. The house needs a new bathroom, kitchen, boiler, rewiring and a bit more, but we don't mind the work because were looking for a long term investment. Anyway, my question is...

Is the house priced at £95000 because thats what it's worth eventhough it needs all the work done or, could we put in a lower offer anyway (say £80,000) and risk offending the seller??

There's also a retention on the property...argh, questions questions questions!

Thanks

for the love of god, don't listen to the estate agent!

i'd also think twice about going to a broker recommended by the EA, it somewhat ruins your negotiating position if they know what you can actually afford. they'll take you for as much as they can.

also, don't worry about offending someone you've never met before and will never meet ever again. if you over pay by 15k, its hardly reassuring to say 'oh well at least i didn't offend anyone' as you struggle with the new mortgage. put another way, they wouldn't volunteer to give you 15k for no reason whatsoever; so you shouldn't either.

HTH

sweetchilly

I am a First time home buyer, Yesterday I have agreed a property deal. I have been expecting 25% money investment through a Key worker scheme, but unlucky they don’t have any funding until next April, that given me a big shock.
I have visited couple of high street banks, most of them asking 15-20% deposit of the property value (which is not affordable), and few of them agree with 10% deposit, but their interest rate is 6.99 – 7.14 %, which is too high.

Could any one please help me with, how to get a good deal?
My credit history is good

sweetchilly

piefacerecords wrote: »

HSBC offer 90% as standard or 95% if you are a graduate. Halifax were offering 97% until a month ago (b0ll0cks, wanted to take that offer!!!) but have since dropped to 95% which is still high compared to the rest of the market.

We are saving for a deposit but I don't think we'll ever save enough because they keep moving the goalpoasts

Yesterday I have visited my local high street banks
Nationwide - Minimum Deposit 15% interest rate 6.28% for 2 years fixed minimum
Halifax - Minimum Deposit 5% interest rate 7.09% for 5 years fixed minimum
Lloyds TSB - Minimum Deposit 20%
Barclys - Minimum Deposit 20%
HSBC - Minimum Deposit 10% interest rate 6.99% for 2 years fixed minimum

pinkhearts_2

We are also having a massive problem getting a good rate. We had been offered a mortgage through Nationwide only to be told after paying out for the valuation 2 weeks later that it shouldn't have been offered to us as you need 25% deposit. We have 15%, I mean the base rate is 3%, mortgages are double this!!!!! The next best rate is a fixed for 2 years with Nationwide at 6.19% with a £995 fee. We initially got offered a varible rate which we were told is coming down to 4.69% with no fee e.t.c now because of there error our mortgage is looking like another £160 a month

jig

Is there any websites, comparison site that you can clearly see rates and compare?

susanqy

I still have enough money to buy a new house, the house is small but the point is I do not want to loan

daks

thanks for the advice:j

thriftymoo

Hiya

I'm saving for a deposit on a house and just needed a little bit of advice about mortgages and how much i should really save. I have 2 defaults on my credit file that i have paid off but i believe they wont come off my report until 2013 (and i'd like a house well before then!) and i realise that this will make it harder to get a mortgage. I don't want a massive mortgage but was wondering if anyone knows roughly what i would be offered with this credit rating and a salary of roughly £15k? and what type of percentage of the value i would be able to get?

Thanks for any help!:o

Lysa

_Andy_

lysasparkles wrote: »

Hiya

I'm saving for a deposit on a house and just needed a little bit of advice about mortgages and how much i should really save. I have 2 defaults on my credit file that i have paid off but i believe they wont come off my report until 2013 (and i'd like a house well before then!) and i realise that this will make it harder to get a mortgage. I don't want a massive mortgage but was wondering if anyone knows roughly what i would be offered with this credit rating and a salary of roughly £15k? and what type of percentage of the value i would be able to get?

Thanks for any help!:o

Lysa

Best case would be approx 4x salary and bare minimum 5% deposit (plus legal fees, valuation fee, moving costs etc)

That said the default could well cause you problems meaning a higher deposit would be needed, perhaps 10-15%.

Orlando_Virgin

Afternoon all,

Some advice if needed if anyone could be so kind.

After 5 years together, my girlfriend and I are in the process of saving the deposit for our first house together, it will be both of ours first houses (if you know what I mean) and we're both a bit muddled about the steps we should be taking first.

Would it be best to save the 10% deposit first before looking at any houses/mortgage deals whatsoever? Or should we be looking for meeting with advisors already at this stage. I earn around 24k before tax and my girlfriend around 16k.

We are obviously both anxious to get on with buying our first house but don't want to make any rash decisions etc. and wind up with more than we can handle before we even start. We are both debt free and have saved up around 3k so far towards the deposit although we are both aware this won't be enough. We keep hearing about government schemes, new houses, offers, etc. if anyone could give any helpful advice on what to do first that would be great.

BTW, my partner said she has found a site called Mypropertyhero.co.uk? Whats the catch with companies like this? Do they take a cut?

Thanks
OV