First Time Buyer's Guide To Mortgages

MaXimumbreak

How much money could one expect to lend if on a combined income of 65k with a 25k deposit. What kind of deals are available based on the purchase of the maximum possible house price achievable?

Thank-you!

Garyj_2

Friends of mine have just secured a 95% mortgage, although it wasnt advertised on the mortgage lenders website. Does anyone know of any other 95% mortgages that might be available? Theirs was with the clydesdale bank.

1sttimebuy

Hi All,

I am a first time buyer who has only £4,500.00 of savings and a salary of £36,500.00 and wants to get onto the property ladder. So I've been looking at shared ownership properties where I live in London.

I have found a 2 bedroom/2 bathroom flat that the share is about £95,000.00 but am told as it's a new build I will need a 20% deposit. Could I get this as a loan and has anyone done anything similar?! I can afford to pay the loan and mortgage and other related bills but would try to rent out the spare room so I could still save/go out etc...

Any advice would be really appreciated!

Thanks

_Andy_

1sttimebuy wrote: »

Hi All,

I am a first time buyer who has only £4,500.00 of savings and a salary of £36,500.00 and wants to get onto the property ladder. So I've been looking at shared ownership properties where I live in London.

I have found a 2 bedroom/2 bathroom flat that the share is about £95,000.00 but am told as it's a new build I will need a 20% deposit. Could I get this as a loan and has anyone done anything similar?! I can afford to pay the loan and mortgage and other related bills but would try to rent out the spare room so I could still save/go out etc...

Any advice would be really appreciated!

Thanks

No mortgage lender will accept a personal loan as a suitable source of deposit.

robin_banks

_Andy_ wrote: »

No mortgage lender will accept a personal loan as a suitable source of deposit.

I'm staggered that people think it would br considered as a deposit.

Don't worry about shared ownership, it's not a good idea.

1sttimebuy

robin_banks wrote: »

I'm staggered that people think it would br considered as a deposit.

Don't worry about shared ownership, it's not a good idea.

Why do you think shared ownership is not a good idea?!
Also why would they care where you got the deposit money; surely they just need to know that you can afford to pay your mortgage and any other depts.?

_Andy_

1sttimebuy wrote: »

Why do you think shared ownership is not a good idea?!
Also why would they care where you got the deposit money; surely they just need to know that you can afford to pay your mortgage and any other depts.?

As stated already, no mortgage lender will accept a deposit from a loan, it shows a lack of ability to save etc. Plus it isn't a deposit, it's just more debt.
The 'whys' aren't really relevant, you need to accept that's not an option.
Also I don't know of any loan providers that will lend for that reason anyway.

mistrihelen

A newbie question I'm afraid. My partner and I have applied for a mortgage, and as we've never done this before I'm worried about everything, including the credit check. The last three years should be fine as we're in good jobs etc. However, about three and a half years ago we had some financial difficulties due to having to move house a fair bit. The extent of the difficulties was probably bumping into the limit of our graduate overdrafts now and then. Do you think this could affect things if we've had a spotless record since?

If it helps, we're have a 10% deposit for the house we want, and the rest of the mortgage is just over twice our joint salary.

ETA: I'm tempted to do a credit check now, but presumably it's safer to do this after the lender has done one? In which case I should just wait for them to give us a decision.

spikeboy_2

Need some advice please. I'm looking at finally moving out into my own place. I earn £19k a year and have approx £50k in savings (spread across many bank accounts thanks to MSE)!. I would like to keep back if possible £15k for appliances/furniture/etc.
I've just gone through about 10 bank websites for an approximate calculation of what I could borrow - they range from £65k to £100k. I know that I would need to speak direct to banks etc for a more firm quote but in the meantime what advice would you give to someone in my position?
Thanks.

jimrichey

Hi,

Thanks for the great thread, lots of useful tips.

I'd really appreciate some advice about my current situation. It's related to earlier posts about raising a deposit from loans.

My employer has offered me an interest-free loan of up to £10k as a sort of "golden handshake". If taken, the loan is to be paid off strictly over 36 months as deductions from my monthly salary. There are no other costs attached. I'm thinking about taking the money and putting it into a savings account to earn some interest.

The thing is I am toying with the idea of buying a house within the next year. However, if I understand correctly from the previous posts, if I were to take the full loan and use some of it as a deposit on a mortgage, it will only serve to reduce my suitability for a mortgage in the banks eyes (even though I will be borrowing less) because a) I will have a reduced take-home salary and b) I will have 10k of debt to my name. Is this correct?

Thanks in advance,

Jimrichey