First Time Buyer's Guide To Mortgages

kingstreet

nathan.derringer wrote: »

Hi there,

Firstly, thanks for your thread, as a first time buyer i learnt alot from reading though it all.
I was wondering if there are any recommendations for mortgage advisors? Im in a bit of an odd position, in that im trying to buy a property from my parent so none of the standard formats i can find online seem to work for me! Any advice would be greatly appreciated.
Thanks,

Nathan

Pretty much any decent broker can advise on a concessionary purchase and knows the SDLT is based on the "consideration" ie the amount actually paid and not the true value on which the transaction is based.

Just stay away from national chain estate agents.

VivianBlair

Hi,

I inherited a house 2 years ago (deeds are in my name now) however I wish to sell it and move to a bigger house. Although I Inherited the house I have never brought a house do I still have to pay stamp duty if I move?

Also what if I sold my house and moved in with my parents for a little while, then buy a house say 3 / 6 months later would I still have to pay stamp duty? even though It would be my first time buying a house?

Any advice and tips would be gratefully received.

many thanks Viv

kingstreet

It's the "owning" rather than the "buying" that's the issue here.

Once you've owned a property, that's it. You can't be a FTB.

System

It's becoming apparent that multipliers (of salary) are only around the 3x / 4x mark from what I've discovered... With 4.5x being the highest I've heard of ... Any others have experience of anything different ?

Also, what is a decent mortgage rate these days ?! (I know LTV matters & what deposit you can trump up...) but would 2.99% fixed for 3 years be a good rate at this time, for example ?

Thanks in advance

kingstreet

On a sub 80% mortgage with an income of £30k, you can still get 5x income.

4.5x is about standard.

Obviously, things like credit, ground rent & service charge, childcare etc are going to reduce that.

2.99% is a poor rate. We'd expect to see 1.7% with a fee, 2% without for a two year fix. For five years, 2% to 2.4% again fee and LTV dependent.

ellalazar

Hi,

Me and my partner have been let down with our first house that we was buying. We have had to pull out because the house was advertised with a drive but the land that was advertised as the drive doesn't actually belong to the sellers. (it is children of an elderly couple who are selling the house). We have gone through 2 months of trying to get the land but we have now been giving the option to either 'take it' or 'leave it' without the land outside the house. So we have had to pull out. I was wondering whether we can request any money back for this as we've paid fee's already. Including some solicitor fees.

mayey87

Thanks for the very helpful and detailed guide! I have done my fair share of research on first time buying, but couldn’t quite find the answer to my question...

Hi! I am a nurse working in the NHS on a tier 2 visa, while my partner is a self employed gas engineer with a British passport. Our combined gross income is around £65-70k per year. My question is: is it possible for us to get a mortgage despite my visa status?

I have been working for the NHS (and in the UK) for 2.5 years. My current visa is valid until 2021, but I have a permanent contract with my employer, which means my visa will automatically be renewed once it expires. By 2023, I will be eligible for an indefinite leave to remain status, and by 2024 I can apply for british citizenship.

In terms of credit scores, mine is very good (better than his), and I have a bigger combined credit card limit (around £8k). I also have a more stable income than him, and as I have a permanent contract with the NHS, my job status is also more stable than his.

My partner is very impatient and wants to get this house ASAP as he has already saved up enough money for the deposit (looking to get a £250-300k house), while I also have enough savings for fees and renovation costs. I, on the other hand, is concerned about my visa status.

Thanks in advance for your replies!

comedyseeker123

I earn £22k and I’m wanting a mortgage of £130k with a LTV of 79%.

I’ve worked at this job for a year - prior I was self employed and finished that last financial year and started a new side business that did very well.

So although my guaranteed income is £22k I also have a greater earning capacity.

Applied via broker for a much bigger mortgage and the house sale fell through but she was confident with the mortgage.
AIP ran out and I went direct with Halifax.

What are my chances of getting a mortgage? I was upfront with Halifax.

Curls2208

Hi there.

I am getting there with my mortgage now.

I have so far... 

Had the offer accepted on the house
Had a real Mortgage offer confirmed (not just a DIP)
Sorted solicitors - but I have only just sent off all the paperwork this should be finalised next week.

Now I have a conundrum, I was wondering if anyone could help. It's LISA and House buying related.
I have my LISA maxed out, however come April it will be a new tax year. I have an extra 4 K to put in there, and bam, it'll turn into 5 K. Dandy. 

I am worried everything will happen too quickly, I have had pressure from the estate agents a lot as apparently the seller wants the deal done quickly.

I'm in no rush, what can I do? Can I just take my sweet time about it with no repercussions? Should I talk to my solicitors about my conundrum? I want that extra £1000, it seems crazy not to wait  for it. The thing is it won't be the 5th/6th april i can get it.

I'll whack my 4K in then but then the Moneybox LISA seems to take weeks and weeks to actually put the GOVT incentive in, I recon it could be the end of May before that extra £1000 appears. 

Do you recon if the 4K was in the LISA in the next Financial year and then I pressed on with the house buying, then Moneybox/The Government would have to honour the extra thousand pound and get it to me a bit sooner? 

renfirsttimebuy

Hiya...
Sadly I would say if you are on a low income you will not get much of a mortage. Options are to join others and form bigger pot. Ask help from parents.

One thing I have learnt is work on your credit rating, always pay things back on time and save save save!!! 

When i first started looking I had a 5% deposite then I learnt about stamp duty and the massive fees that you need!!! There are so many other cost than the deposite!!!