First Time Buyer's Guide To Mortgages

JJmcClure

adewalebiggie wrote: »

So have called all of the banks that are talking big about offering 90 or 95 per cent mortgages. All are not willing to lend me the amount I need £144K...I earn £30K a year, and after tax have about 1,600 a month left. But based on affordability - am not eligible for the sum of money needed to buy even a prime parking space let alone a flat in London.

The crapest offer goes to HSBC - who also happen to be my personal bank - despite holding all of my savings and my ISA, never going overdrawn and having, as the person I spoke to admitted, a really good credit rating, the most they could give me was £105K.:mad:

To add to my joy - just been called by my estate agent and been told the property I wanted has gone - at full asking price.

Kinda feel there is really no point to this - wish I had just lived it up, instead of diligently saving my pennies, and gotten a really bad credit scoring. Least then this rejection would make some sense!

Think I will just have to hold tight and wait either for the lottery or for the banks to see some sense. Know which one I would hold my breath for.

Sorry to hear that. Who did you go to?

What are you going to do now?

adewalebiggie

_Andy_ wrote: »

Shame on HSBC for being a responsible lender.

If the banks were such responsibile lenders then this country would not be facing one of the worst recessions we have seen for decades and us taxpayers would not be facing higher taxes and interest rates for years to come to deal with the mess they have created.

adewalebiggie

mistrihelen wrote: »

I don't think the lenders are being stingy, adewalebiggie - you're actually asking for quite a significant multiplier of your salary. 105k seems reasonable - maybe you just need to look further afield? If you are buying on your own, on that salary, you have to accept there's a compromise somewhere - and maybe commuting to London is it.

Our joint salary is almost twice yours, yet we have 'only' gone for a mortgage of 126k - the most expensive properties I even wanted to look at were in the 180 range and I would've been nervous applying for that (frankly, going for a house of 140k was somewhat terrifying!).

If you are realistic and find a property somewhere within what HSBC or whoever is willing to lend, you'll be glad of your savings and having a good credit score.

Good luck

Thanks for your response - very helpful and your suggestions are all things that I have taken on board and considered .

I wish I was in the same position as you, while I could wait until I am - the feminist in me thinks I should not have to wait until I am in a long-term relationship/married to own my own home .

The area of London that I live in, which I was born and bred in - Old Street - is very expensive - so I have always been aware of the need to compromise and be realisitic.

I would love to buy a house as cheaply as possible, but unfortunately I live in one of the most expensive cities in the world and it might seem like I am asking for much but I would like to stay in the place in which I was born, bred and currently live in.

As I do not have rich parents to bank-roll me, or have a salary that falls into the 50% tax bracket I have therefore lived at home and diligently saved my money. I also, when I started looking, focused on cheaper parts of London i.e. Outer London and on properties that were in less desirable areas i.e. council estates.

Yes I understand that my above average salary is still not considered by many enough but:

1. I am not asking for a ridiculous amount of money, salary multiples are between 3 - 5 times your current salary. 5 x 30 = 150K. I am looking for £144 which is 4.8.
2. I will not always be on this salary
3. Banks were willing to lend alot more to people on a lot less with bad credit and CCJ's etc. :mad:

Therefore I do not think that I, as a person who has saved dilligently and has a good credit history, is being treated fairly - regardless of how people may try to expalin otherwise to me . I can see that things would be a lot easier if I married an investment banker or upped sticks to the Outer Hebrides but I am not keen on either options.

EagerLearner

Hang in there adewalebiggie - lots of us in the same boat - we'll get there! Please don't marry an investment banker over it

We have been offered 5.79% on a 25 year mortgage with 20% deposit, can anyone advise if this is more or less what they have been offered as an FTB?

mistrihelen

adewalebiggie wrote: »

Thanks for your response - very helpful and your suggestions are all things that I have taken on board and considered .

I wish I was in the same position as you, while I could wait until I am - the feminist in me thinks I should not have to wait until I am in a long-term relationship/married to own my own home .

The area of London that I live in, which I was born and bred in - Old Street - is very expensive - so I have always been aware of the need to compromise and be realisitic.

I would love to buy a house as cheaply as possible, but unfortunately I live in one of the most expensive cities in the world and it might seem like I am asking for much but I would like to stay in the place in which I was born, bred and currently live in.

As I do not have rich parents to bank-roll me, or have a salary that falls into the 50% tax bracket I have therefore lived at home and diligently saved my money. I also, when I started looking, focused on cheaper parts of London i.e. Outer London and on properties that were in less desirable areas i.e. council estates.

Yes I understand that my above average salary is still not considered by many enough but:

1. I am not asking for a ridiculous amount of money, salary multiples are between 3 - 5 times your current salary. 5 x 30 = 150K. I am looking for £144 which is 4.8.
2. I will not always be on this salary
3. Banks were willing to lend alot more to people on a lot less with bad credit and CCJ's etc. :mad:

Therefore I do not think that I, as a person who has saved dilligently and has a good credit history, is being treated fairly - regardless of how people may try to expalin otherwise to me . I can see that things would be a lot easier if I married an investment banker or upped sticks to the Outer Hebrides but I am not keen on either options.

I am sympathetic - it's taken us so many years of disappointment before we've been able to start looking seriously. And I certainly wish it were easier for solo people to buy their own places (I'd be in a better situation too if I'd been able to buy before marriage).

I still think 5x salary is a lot, but I know why it's frustrating not to get it.

I also understand wanting to live in a specific place - we would've loved to buy in Hertford. As it is we will have to move further away to find something affordable and we've decided to do that.

I hope you find a lender that'll work with you - I don't say compromise (at least I hope not) in a patronising way, but only because for a lot of people that's how they get their houses.

Good luck.

_Andy_

adewalebiggie wrote: »

If the banks were such responsibile lenders then this country would not be facing one of the worst recessions we have seen for decades and us taxpayers would not be facing higher taxes and interest rates for years to come to deal with the mess they have created.

HSBC have always been conservative (no self-certs/fast-tracks), no 100% (aside from graduates), cautious with adverse etc. Therefore they weren't reliant on selling their mortgages as investments.

You seem to be criticising banks for being cautious when it comes to your own mortgage, but also criticising them for not being cautious (in the above quote).

angiec26

Andy, I have been to look at a house this week and meant to be putting a deposit on it on thursday it is a new build. They have a scheme that allows you to pay for 80% of the property but own 100%, there is no rent to pay on the remainding 20% the money is interest free for 10 years and you can over pay your mortgage to pay off the 20% or pay off a lump sum earlier. When the house is sold the company gets 20% or what ever percentage is left of the current market value. I know this is the catch, but i have no other way of affording a mortgage and will be overpaying each money to reduce the percentage they own plus in 2 years i will have finished uni and hopefully be getting a better paid job.

what do you think?????

thanks

Angela

RAINBOW123_3

Hi All

Does anyone have good or bad experiences with Abbey National mortgages?

Where they helpful?

Did it take long for them to carry out the mortgage valuation survey?

:cool:

gmbunn

Hi Folks,

This is a pretty embarrassing situation but Im hoping somebody may have some advice. Im 26 and my partner is 25. We both have steady, pretty safe jobs (police officer and school teacher) and have a pretty low level of debt for our incomes. However about 5 years ago when at Uni i got into a sticky situation with my borrowing and ended up with a few default marks on my credit files. Ive since settled all accounts but now I cant even get a standard current account! We are looking to get onto the property ladder but cant get a mortgage regardless of a deposit. Are there any specialist types of mortgage that we could consider?

Any advice would be appreciated!

gmbunn

JJmcClure

Well, it's not going well for me either at the moment

A house converted into flats is now classed as a new build, meaning I've lost my flat, unless I can find a £50,000 deposit (30%). I have 10%

I can't believe how hard it is as a first-time buyer to actually get on the property ladder at the moment