First Time Buyer's Guide To Mortgages

JackyHappy

Can anyone advise.

My mum's mortgage is due to end in 4 months time. She wants to sell and get a small flat and the darling wants to help me with purchasing a place of my own (I'm currently renting). I thought maybe releasing capital from the current property enabling her to buy a small flat and I take over the current property by obtaining a mortgage for the balance would help but I understand "releasing equity" has it's drawbacks.

The other options is for us to buy a bigger house (I have an 18 year old) and then it covers everything, however, I think I'd prefer to get a place separate but near to my Mum.

Any tips?

yonxb

I don't think you are being too cautious at all. £120,000 on a salary of £16,000 = 7.5x income which in my mind is financial suicide.

kingstreet

yonxb wrote: »

I don't think you are being too cautious at all. £120,000 on a salary of £16,000 = 7.5x income which in my mind is financial suicide.

Who are you replying to?

rushza

Hi all.

First of all I am new to the UK, having moved here 3 years ago. My wife and I are renting (she has lived here for 12 years)

I am now wondering if its too early to start looking at buying a home?

I am not sure if I will be eligble for a mortgage, however my bank approved a cash loan for me recently so I might fall into the bracket of being good on my credit.

Is there a way I can find out if I can apply for a pre approved morgage? Also, how do I go about finding out more about the half but / half rent option? Is this worth chasing?

What options do I have as a first time buyer? How can I go about looking into a 100% loan?

Thanks for your time :-)

Sprat666

Hello all, a lot of you sound like you know what your talking about and I'd be really grateful of your help! I'll try not to bore you with my family life but I'm 23 with a partner and chiled I earn about 18k and my partner is a full time student. We are renting at a cost of 600p/m. I think buying would be most cost effective now me and my partner have old pensions of about 8k which can be taken anytime (the deposit) first thing is this a good idea?. Also I'm aware on wage I wouldn't beable to borrow enough as far as iv worked out this leaves me with part buy part rent or somehow trying to buy with my mom and dad me paying everything them just being there so I could afford a whole house I'm not talking massive about 120000k which with a good interest rate would work out cheaper than rent. Am I right or talking rubbish some helpful advise would be grate as I feel I'm going to be throwing my money at someone else's morgtage for ever!! Thanks jack

Katherine1_2

AndrewSmith wrote: »

Please everyone remember that this is not a definative guide to mortgages, simply my own interpretation and opinion. Therefore don't start having a go or trying to prove me wrong by saying there are things I have missed etc. Mortgages is such a massive topic that it is impossible to cover everything in a post such as this. Also much of the actual advice on mortgages and the definition of suitability is dependant almost entirely on personal individual circumstances.

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If not then simply ask me for more info

Hows this to be going on with?

Apologies for the length of the post

Anything else you need, just ask me.

Will cover the insurances a bit later.

Cheers (now with RSI)

Andy

Amazing work Andy! I think, this is very beneficial for first time buyers, at-least helping to resolve the basics of mortgage. And I must say, length is not the issue, because you have covered every aspect in a point so that, one can just look and directly switch to the point in need. Hates off to your efforts.

kingstreet

^^^^^^^^^^^^^^^

Canadian mortgage spam. Hit the button, folks.

Paramount

rushza wrote: »

Hi all.

First of all I am new to the UK, having moved here 3 years ago. My wife and I are renting (she has lived here for 12 years)

I am now wondering if its too early to start looking at buying a home?

I am not sure if I will be eligble for a mortgage, however my bank approved a cash loan for me recently so I might fall into the bracket of being good on my credit.

Is there a way I can find out if I can apply for a pre approved morgage? Also, how do I go about finding out more about the half but / half rent option? Is this worth chasing?

What options do I have as a first time buyer? How can I go about looking into a 100% loan?

Thanks for your time :-)

I would suggest visiting your bank to speak to someone. The internet is a great source of information but things change rapidly these days and the bank is probably the best idea for the latest information.

100% mortgages are rare but again worth asking the bank!

Good luck!

Girl_from_London

Hello everyone,

I have found it really valuable reading this thread as so many people have shared such useful advice - thank you!

I was wondering if anyone could offer me some advice on my situation?

I am in probably quite an unusual position to have rather a large deposit available of £110k due to an inheritance and 2 years of saving religiously. Arguably this is a fortunate position to be in, but it also feels like a huge responsibility. I would be looking to buy in west/south west London which is rather expensive and would probably cost between £250-300k for a 1/2 bed flat. My problem is, that on a salary of £35k would I be overstretching myself? And are there any mortgage companies that would look favorably on a large deposit % that would be worth investigating?

Thank you very much in advance for any advice that anyone is able to offer!

kingstreet

£35k means the possibility of a mortgage of upto £175k. Lenders will make a deduction for any ongoing credit commitments and anyone financially dependent on you.