First Time Buyer's Guide To Mortgages

rogeiro

Good guide before you pick up a mortgage. BTW I would not get one

_Andy_

rogeiro wrote: »

Good guide before you pick up a mortgage. BTW I would not get one

Pathetic spam. P*ss off.

mollymoo13_2

I am so confused about 100% mortgages. Me and my boyfriend have a meeting with a mortgage advisor on Friday. We both have good credit ratings. Almost no outgoings (£150 higher purchase payments for a car each month but nothing else) and each earn 20k but currently have no savings. We were just going to have a chat with the advisor and see what we should be aiming for and how long it will take us to save as, due to recent media coverage I thought a 100% mortgage was out of the question. But I keep seeing things to the contrary, even this: http://www.abbey.com/csgs/Satellite?c=GSInformacion&cid=1157700517388&pagename=Abbey%2FGSInformacion%2FGS_ResumenHipotecas
Also when I typed our info into their mortgage calculator it said we could borrow around 150k but we only wanted to buy a property worth around 125k. Would this mean they would maybe be willing to lend us 100%? I am very confused... please help!

rogeiro

_Andy_ wrote: »

Pathetic spam. P*ss off.

Yeah right.

OxfordFutureFTB

Hello and Happy New Year everyone!!!

It's my first post so let me introduce myself. I live in Oxford and I look to buy my first home with my partner at some point. We are both totally debt free and with good credit scores. I earn 20K and she earns 16.5K +benefits and bonuses making it more like 18-18.5K a year. The only problem is that my company is in administration and I have no job security at the moment whatsoever.

I am really confused about the negative equity and I am not sure if I will buy a house now let's say worth 160K and pay off in mortgage repayments in 3 years about 10K but the market price of the house will go below 150K will I need to cover that loss in some way? Please help.

Thanks

nelly10

Hi all.

me & partner are first time buyers. I'm a teaching assistant earning 9k with tax credits of 7k. Partner is self employed.

We have a deposit of 9k with 1k for fees.

Ive learnt about the cooperative's 'ownhome' scheme, and wondered if anyone knew anything about it?

We were burgled yesterday (new years day) and now we feel we should move. Problem is, to leave my council house i'd be looking to pay rent of £90 a week. I dont want to do that if i could just get a mortgage!

Any advice would be great.

Happy new year to you all

Nell

sarastark86

nelly10 wrote: »

Hi all.

me & partner are first time buyers. I'm a teaching assistant earning 9k with tax credits of 7k. Partner is self employed.

We have a deposit of 9k with 1k for fees.

Ive learnt about the cooperative's 'ownhome' scheme, and wondered if anyone knew anything about it?

We were burgled yesterday (new years day) and now we feel we should move. Problem is, to leave my council house i'd be looking to pay rent of £90 a week. I dont want to do that if i could just get a mortgage!

Any advice would be great.

Happy new year to you all

Nell

Hi Nell, I applied for the Ownhome scheme in summer and have been approved, ditto a mortgage through the Co-op, but haven't taken it any further because by all accounts house prices will keep dropping so going to wait a bit longer.

I don't know if it is available all over the UK, I am based in south east where I think they were/are piloting it. First thing to do would be ring up and get them to see if you are eligible (getting the call back alone took 6 weeks so don't expect this to be a quick fix!). Based on earnings you would be eligible but it depends if funds are allocated to your area. I did read on the local housing website www.homebuy.co.uk that they had stopped accepting applications for this financial year, but that more funds would be allocated in April, so it may be worth waiting until Feb/March to make the initial phone call thus timing your actual application for when the funds arrive.

Regarding mortgages tied in with the scheme, the Co-op provide them and they seemed pretty competitive, although the max LTV is 75% if you want to get the best rates. You can take out max 75% on a new build build. Mortgage arrangement fees are steep at approx £1000 although you can add them on to the debt (and pay interest, of course). You have to take out a minimum mortgage of 3x your joint salary and then the equity loan will be 20-40% of the remaining purchase price.

I don't know much else as I haven't proceeded any further with the application but hope this info helps. It is worth just applying for the scheme to find out if you have the option of doing it, there's no obligation to buy. It seems fairly reasonable and I am inclined to trust the Co-op a bit more than other banks as they are 'ethical', although of course they trade on that image...

alph250

Interesting read orlando_virgin

Me and my girlfriend are in exactly the same position!

I earn 23.5K and she earns 16K, debts are all gone now and we have 2.5K saved so far, were currently saving £1300 pcm (thanks for the cheap rent Mum and Dad!) we are hoping to buy through the ownhome scheme run by co-op around June/July time as we should have about 10K saved.

My only concern is that i had 4 consecutive missed payments on a Next directory account and had a Default notice slapped on my credit file, i successfully got this default notice removed back in July from my credit history (experion) but still have these 4 missed payments on an unblemished credit history (annoying especially as it wasnt all my fault!)

We plan to buy a 2 bedroom house for about 170K on a 60/40 split and hope to take on the full amount within the next 2 years when i should get promoted (im a trainee building services engineer). Using the ownhome scheme to get a decent mortgage with no deposit and retain about 5K (less moving costs and a bit of furniture) in the bank for a safety net, the lower repayments (we would only have a mortgage for £102k) would mean we would still have some money leftover to enjoy ourselfs while were still young (24 & 22) untill i get promoted and can use the extra money from my raise to cover the extra repayment costs of a bigger mortgage.

Feel free to comment on our plan! and if anyone has any experiences they wish to share with ownhome? especially if you had a similar credit history to mine!

But for now we just waiting for the market to bottom out, it would be silly buying a proprty now when house prices are still falling!

matt669

Hello all, and many thanks for taking the time to read this. I basically wanted to make sure i'm sure on the right track for things. Both myself and my fiancee still live at home, have no debts at all,clean credit ratings, with hardly any monthly outgoings. She is a teacher and earns about £20k per year, i am an officer worker and get around £17.5-£18K. We were looking at houses between 130-140K in Gloucester. Currently we have around £8K saved for a deposit and we are somehow managing to save 2k between us per month. How much of a deposit should we really be aiming for i had guessed at about 15%? Is it too soon to be seeing a mortgage advisor or should we wait untill we have more saved? Sorry if these all seem really trivial questions but i am really lost on this sort of thing and am very unsure of the options open to us.

Many thanks in anticipation of your replies

Matt

sarastark86

alph250 wrote: »

Interesting read orlando_virgin

Me and my girlfriend are in exactly the same position!

I earn 23.5K and she earns 16K, debts are all gone now and we have 2.5K saved so far, were currently saving £1300 pcm (thanks for the cheap rent Mum and Dad!) we are hoping to buy through the ownhome scheme run by co-op around June/July time as we should have about 10K saved.

My only concern is that i had 4 consecutive missed payments on a Next directory account and had a Default notice slapped on my credit file, i successfully got this default notice removed back in July from my credit history (experion) but still have these 4 missed payments on an unblemished credit history (annoying especially as it wasnt all my fault!)

We plan to buy a 2 bedroom house for about 170K on a 60/40 split and hope to take on the full amount within the next 2 years when i should get promoted (im a trainee building services engineer). Using the ownhome scheme to get a decent mortgage with no deposit and retain about 5K (less moving costs and a bit of furniture) in the bank for a safety net, the lower repayments (we would only have a mortgage for £102k) would mean we would still have some money leftover to enjoy ourselfs while were still young (24 & 22) untill i get promoted and can use the extra money from my raise to cover the extra repayment costs of a bigger mortgage.

Feel free to comment on our plan! and if anyone has any experiences they wish to share with ownhome? especially if you had a similar credit history to mine!

But for now we just waiting for the market to bottom out, it would be silly buying a proprty now when house prices are still falling!

Hi Alph250, as you can see from my post about Ownhome above, the minimum mortgage that they will let you take is 3x your joint income therefore with you and your partners' earnings you would be expected to take out a mortgage with the Co-op for at least £118.5k. Unfortunately not £102k, that would be far too affordable! I was quite surprised when the Co-op told me this as I had previously gone on the assumption of 2.5x joint income. On the plus side on this basis you would then own 70% of the 170k house you've got in mind, so less to pay back when you get promoted :-)