First Time Buyer's Guide To Mortgages

Girl_from_London

Thank you Kingstreet. I had a look at some providers websites and established a possible mortgage figure around that point. I suppose my question was really, are there any mortgage lenders that would look favorably on a large deposit and smaller income vs a smaller deposit but larger annual income? Or whether the risk profile for both scenarios would be deemed equal by mortgage lenders.

kingstreet

Girl_from_London wrote: »

Thank you Kingstreet. I had a look at some providers websites and established a possible mortgage figure around that point. I suppose my question was really, are there any mortgage lenders that would look favorably on a large deposit and smaller income vs a smaller deposit but larger annual income? Or whether the risk profile for both scenarios would be deemed equal by mortgage lenders.

I missed this at the time, sorry.

Lenders have set parameters to work to. The credit score and deposit an applicant has may result in relaxed status enquiries, but they don't deviate from their set affordability models because you have 5% more than the next applicant.

If the lender offers it, it will be explicitly stated.

Some say if income is £30k, you get 4x income. Others say if your loan to value is 80%, we'll lend 5x and so on.

If they do this, you'll know they do it at the outset. They don't "horse-trade" during the application process. You apply for what you get and what you get is what you apply for, if you see what I mean. Nothing is done ad-hoc.

Valeria12

I am planning to purchase house in USA but I don't have any idea about that. Can anyone help me....???

lea_t88

Andy - this thread is great and so helpful. Thank you for taking the time to post everything.

Would I be able to pick your brains on something...

I'm hoping to buy somewhere for the first maybe mid next year. Places I am looking at are currently around £80,000.

I would be buying alone, and I am also a freelance worker, so go from contract to contract (usually around 3/4 months length each). I get £600 per week but usually end up with about £33k each year as I rarely have time to take my holidays and get them paid.

I understand it would be tricky in my situation to get a mortgage without permanent work, but what I fear makes it trickier is that I will have only been doing my job for 2.5 years, and not the 3 years lenders will ask for.

I can prove I have never been out of work in these 2.5 years and have most of my payslips (still chasing a couple), but is it very likley I would have a lot of trouble with my applications?

Im not thinking of doing anything for a few months when I have built a deposit so just curiosity at this stage.

Or if anyone has been in a similar situation, could you let me know how you got on?

Many thanks!

rasakukoo

I would be grateful if somebody could advice.

I am First Time Buyer. My house valuation is satisfactory and mortgage application has been accepted (all witin 2 weeks). I have instructed for Building Survey for next week Monday. My situation is as follows:

Mortgage In Principle accepted for £178000
Find a house and offoer accepted £191000
Mortgage application applied and accepted for £152800 (20% deposit)

Now, I am just wondering if the Building survey report is unsatisfactory then, I may need to pull out the offer. In this case, can I find another house (which might me more expensive say i.e. £210k and applied for remaining mortgage amount. How it works?? please advice

Nordman

This is a great post, its helped to resolve a number of questions i had!

Thanks guys

MoaG

I wonder if anyone has can offer any opinions/advice...

My husband and I are about to purchase our first property (a flat in Pollokshields in the south side of Glasgow, a good area with great transport links and local amenities). We have a combined monthly wage of around 3500 currently, which may go up by about £400/500 in August. The amount we would be paying for the flat is 175,000. We have a 10% deposit so would be taking out a mortgage of 158,000. Spread over 30 years, and with the current RBS first time buyer rate (can't remember the percentage!), I think my husband said we'd be paying about 860 a month, or 950 over 25 years. We've crunched numbers and it seems we can definitely afford that, and it is still within a third of our monthly wages, but I can't help feeling it's maybe quite high for a first property? We would happily live there for at least ten years or so before potentially wanting to buy a house. Is this an average/appropriate amount to be paying? Any thoughts would be gladly welcomed. Thank you.

kingstreet

Sit down and prepare a budget planner. See what you'll have left after your bills are paid, then decide what you'd feel comfortable paying for a mortgage.

This is going to be highly subjective. Some people feel differently about different things, so one person's £80 Sky subscription would be ridiculous to someone else.

Make sure you make an allowance for an emergency fund to cover any unexpected expenses.

MoaG

Thank you very much for your quick response kingstreet! We have prepared a budget planner and we're looking at around 800 to 1000 left over (we did a strict budget versus a more lenient!), although that's without anticipating savings. I know it is most probably feasible, I think I just tend to worry more about these things than my husband - he's quite happy to go ahead with the purchase, I was just keen to see what others thought! Thanks again.

fluffy123

Hi all, myself and my partner are currently renting a property and whilst we love the property and easily afford the £700 per month rent, we're interested in buying in order to settle down with the upcoming of children on the horizon (we're both 31).

Therefore, we're starting late but jointly earn around £52,000 per annum and can probably put away £500-£600 per month between us, so far we've only saved for one month!

Where we live will probably be looking at £150,000-£170,000 for a decent property but we're amateurs at this.

We're aiming to save around £15,000 (which'll take us around two and a half years, all being well) but we're wondering what other costs we'd need to factor into the whole move process that we haven't already thought of and what our chances are of getting on that ladder in say, this time in three years.