First Time Buyer's Guide To Mortgages

kaaip75

My background,

Work last 5 years with IT company– Salary 35k

Married with 2 children

Live in rented property – 800 pm

Good Credit score

Applied 1st Mortgage earlylast year but REJECTED. – I asked 200k with 10% deposit



Now I am scared to try again thinking if I get rejectedagain. I have no deposit now (all spend on some other assets)

But I can go for a loan (till 25k) as it is already preapproved.

I have a property viewing this Saturday morning with Sharedownership property (150k = 50%). This is not new but nearly new as currentshared owner is selling his 50%

Can you all please read my situation & advise

1. Is it advisable to go for a already sharedproperty?

2. Can I reapply for a mortgage though I wasrejected last year?

3. Can I use my loan to pay for deposit & otherexpenses?

4. How can I get a principle mortgage approvalwithout messing my credit history again?



Thanks in advance.

grifferz

kaaip75 wrote: »

My background,

kaaip75, you will probably get more answers if you post your query in a new thread instead of this years old one with many pages irrelevant to your issue.

Arthur_Sleep

fluffy123 wrote: »

but we're wondering what other costs we'd need to factor into the whole move process that we haven't already thought of

We're currently fine-tuning our budget - we have these on our list:

• Mortgage arrangement fee
• House-moving costs
• Boxes and packaging
• Conveyancing
• Stamp duty
• Valuation/homebuyers report
• Post redirection
• Buildings insurance
• Gas appliance safety check
• Contingency

Of course, I may have missed some things but hopefully this covers the important stuff.

If you're renting furnished, you'll obviously have furniture to add on top. We're renting somewhere that's part-furnished, so we already have furniture but we know we might have to buy some white goods if these don't come with the kitchen of the property we eventually buy.

MigsyBigsy

Hello people,

currently in the process of buying. Offer has been accepted. But not sure what solicitor to use. ive been quoted different figures. any advice on this.

thanks

grifferz

MigsyBigsy wrote: »

not sure what solicitor to use. ive been quoted different figures. any advice on this.

Start a new thread. Your question hasn't got anything to do with mortgages. More people will read your question if you start a new thread.

Having said that, just like with tradesmen and other services, it's best to get a recommendation from a friend. Failing that, from your mortgage broker if you have one. You could ask the agents which local solicitors they get on with but there is the possibility of them getting a kickback. Even so, they will want the sale to proceed as fast as possible so it's not like they will send you to an inept solicitor.

When comparing quotes make sure you're comparing like for like. Some quotes include more things, other quotes leave some things as paid extras.

CharlieRabbit01

This shared ownership has come up near me, I've rented for years and never been that bothered about buying, but I do always look at whats around.

Can anyone explain shared ownership? These are the details provided on the website:

Full description:
A 2 bedroom FLAT available through our Shared Ownership Scheme

Available for £61,500 for a 30% share based on the full market value of £205,000
Monthly Rent - £328.99
Monthly Service Charge - £83.16
Total Monthly Charge - £412.15 PLUS MORTGAGE REQUIRED FOR A 30% SHARE

Kezmo88

I'm a first time buyer my plan is I want to buy a house and rent it out
Iv been to see a morage advisor and they said with deposit I have £12k) and my income I can't have a buy to let Morgage I'd have to buy a house and live in it for 6 months then Apply for consent to let.
Is this information right? What are the risks of me letting it out straight away!?
And what are the chances of them letting me let it out after 6 months ? Will I be charges loads for doing it?
All advise needed please !!! This is what I really want to do but people keep telling me different things and I'm stuck now what would you do ?

invertedguard5050

this is an invaluable guide for a first time buyer like myself.

thank you

Eponym

Thanks for such a useful thread!

I'm hoping to be able to buy next year and have a question about LTV percentages.

Obviously figures are quoted on the basis of, for example 90% LTV, 80% LTV or 75% LTV (ie. deposits of 10%, 20%, 25% etc).

What happens if your actual deposit amount falls between two values? For example it might be 78% LTV. Would the mortgage company allow that so you borrow less (although I assume it would be at the 80% rate) or would they only allow you to use 80%?

Hope that makes sense!

kingstreet

You borrow the amount you need. If it's 78%, you pick from the products for upto 80% LTV.