First Time Buyer's Guide To Mortgages

kingstreet

Halifax will do a full search when you make a full application. The soft search done so far will not pick up a default from more than three years ago, particularly if it was at a previous address.

It is not particularly reliable in my opinion.

You may wish to post on the M&E board for other opinions on this.

Tigerstripe

Hi guys, ftb here looking for some advice on mortgages. I'm aiming for a 5 year fixed but have a couple of newbie questions.

Do most people re-mortgage after the fixed period? Most likely interest rates will be higher in 5 years than the current 4-5% svr so I'm not sure whether to focus on a lower fixed rate with an eye to switch after 5 years or use the overall cost for comparison.

For example Yorkshire BS says "Pay no early repayment charges if you choose another deal after your fixed period ends". Does that mean I can take their 5 year fixed which has a pretty competitive rate and then swap with no penalty to say Barclays and just pay re-mortgage fees?

kingstreet

It isn't what they mean, no.

They mean they'll give you a new deal when the five year fix ends. However, if you want to remortgage, that will also be penalty free. YBS is actually offering you nothing you can't get as an automatic right.

The only fee you would pay when you leave them is any discharge fee quoted in their key facts illustration.

Tigerstripe

Thanks Kingstreet

Stuck128

Hi I wondered if anyone has any advice for me. What it is is that me and my partner had applied to the company Skipton for a mortgage and it was declined due to my adverse credit then my partner applied online on his own and we got a DIP and spoke to the company on the phone who said we needed the approval letter from the government before they can go ahead with application. The reason we only used this company as they are the only company that work with the
government lift scheme and you don't need a deposit.

We then applied to the government Lift scheme which was then approved and we were told we needed a minimum amount of about £86k contribution so my partner then called up skipton again to make the application and they asked why we don't apply as a couple and we said that it had been declined but approved on his own they then said that they will not give him it now because they know it is for me too it wouldn't be classed as responsible lending on their part. Is there anything we can do? We both work full time and earn £35k between us and only need a mortgage of £86k which is obviously very affordable for us and the fact we pay £336 a month in rent which will increase to approx. £400 when we move in to a 3 bedroom house shows that we can more than afford to pay a mortgage.

Please help someone i only have to 18th December to get a mortgage then the government cancel the grant.

grifferz

Stuck128 wrote: »

they asked why we don't apply as a couple and we said that it had been declined but approved on his own they then said that they will not give him it now because they know it is for me too it wouldn't be classed as responsible lending on their part.

The problem is that if they gave your partner a mortgage, it would be against the full value of the property, yet as you (presumably) are putting up some of the deposit and will be a joint owner (or tenant in common), you will own some of the property too.

Therefore the mortgage has to be against your name too - otherwise if it came down to repossession the lender wouldn't be able to actually get you out of the property in order to sell it and get what they are owed.

They need to have a contract with you too.

Possibly you could avoid this if you were willing to state in writing that you had no interest in the property and were just a permitted occupant.

Yet that probably isn't a good idea since presumably you do have an interest and do actually want as many rights over the property as your partner has, rather than effectively being a lodger.

So unless your partner can fund this mortgage alone and you don't intend to have any financial interest in the property, you are unfortunately going to have to sort out your credit record.

Somersetsun

First time poster, sorry if accidentally break rules.

Other half owns his house which he inherited through a will. He's never owned anywhere else, and has essentially lived in that house all his life. Is he a first time buyer?

We're intending to use the sale of that property as a deposit on a new property. It will work out to be 30% or so of final price. What up front fees do we need to pay? We're looking at properties in region of 140-150k. I've got 5k squirreled away but I've been reading assorted threads and am now quite worried that's not going to be enough for solicitors buying & selling, brokers, stamp duty...the list just seems to go on and on and on.

kingstreet

He isn't a FTB for most lenders, but if you are, that will be enough for you to qualify for a FTB offer.

Most of the fees (EA, legal, stamp duty) can come out of the sale proceeds of his current home.

The only fees you'll need to pay upfront are the valuation/survey fee for the purchase, search fees for the purchase and any mortgage fees which may be upfront, rather than on completion.

Somersetsun

kingstreet wrote: »

He isn't a FTB for most lenders, but if you are, that will be enough for you to qualify for a FTB offer.

Most of the fees (EA, legal, stamp duty) can come out of the sale proceeds of his current home.

The only fees you'll need to pay upfront are the valuation/survey fee for the purchase, search fees for the purchase and any mortgage fees which may be upfront, rather than on completion.

I am not either. Does that then mean that if the best deal mortgages for 30% deposit and up are quoting 4.1% we can apply for those as that's what we'll have? I'm guessing 4.1% is about the best we're going to get. Damn.

Jonjo6

Hi,

First time buyer here. I'm looking to buy my first house in the next 3-6 months with my partner. I earn £26k and she earns £17k - so that's £43k between us, I am 24 and she is 23.

We are looking at buying a new house in the region of £145k. We will have a 5% deposit and are looking to take up the Welsh assembly interest free loan of 5% over 5 years too, so we will be taking a 90% LTV for the house. I am just about to finish paying off a loan for my car, but will have a remaining loan of £75 per month for a bike I bought over the next 2 years.

Does this sound sensible? How much should we put away for fees too for the mortgage?

I had a figure of £2k max in my mind so we're aiming to get £7250 for the deposit and £2000 for the fees between us.

I have made some estimates on living costs and think we should have plenty but willing to listen to those more experienced!

Any advice appreciated.