First Time Buyer's Guide To Mortgages

tootiefrooties

mrloelisi wrote: »

Hi, reading through the posts I have learnt a lot about buying a house for the first time, but I could do with some specific information if you don’t mind.

My partner and I (first time buyers) want to buy a house. She is an assistant manager in retail earning 18.9k including tax credits and the sorts, I am a student and work part time earning 7k plus I have a student loan of 6k.
Therefore total income is 31.9k

She has a loan outstanding of 3k as well as a HP agreement - I have a mobile phone contract and a credit card with 1.5k on it.

Does this mean that we can get a maximum mortgage of 95.7k? If so it puts me in a pickle...

We have looked at Persimmons initiative for first time buyers 'helping hand' which looks good, does anyone know how these things work? Persimmon I know is basically you only pay 75% of the mortgage and only have to pay the remainder after 10 years (or something along those lines)

Is now the right time to buy a house with the market being so volatile?

We are looking at buying a new house simply because there seem to be these initiatives in place only on new houses do you have any better ideas?

What would you do in my situation?

Any more details needed just let me know - I really need help with this.

Thanks


Mrloelisi

I can't answer your specific question but I just want to warn you that they will not consider your student loan as income - it is borrowed money and is limited by the years you study, unlike work. I'm not sure if they would accept tax credits as income either, but I might be wrong on this and it's worth checking (might depend on mortgage provider). With a combined income of roughly £25k you should be able to borrow around £100k which would be enough for a one bed flat in cheaper areas, but again, income multipliers depend on the mortgage provider.

rentbudapestapartment

I rented an apartment in hungary-budapest. I know a good contact! See my profile!

tootiefrooties

rentbudapestapartment wrote: »

I rented an apartment in hungary-budapest. I know a good contact! See my profile!

... jesus christ.

MadSage

*Moved to a separate thread*

happyfish_2

Hi all
Longtime viewer, first time poster.

I wasnt thinking about a mortgage until a freind of mine told me that he got a 100% mortgage for the sum of £160,000.
His repayments are £1000 per month.
This got me thinking, as I thought he'd be paying back more per month.

I pay that a month in rent.
So now Im thinking about a buying, but have very little savings. (£3000)

I earn around 30,000 a year my girlfriend just under 20,000 a year
we've seen a few Bungalows for around 160,000
She is 10 weeks pregnant but gets 9 months full pay maternity leave.

So a few questions.

1: As she is not looking obviously pregnant at the moment. Would she have to declare that she is pregnant, and will only be going back to work part time after the 9 months, when we apply for a mortgage?

2: Is it still possible to get a 100% mortgage

3 Has the stamp duty been changed yet? I know they were talking about it.

Any advice much appreciated

valcarmichael

rentbudapestapartment wrote: »

I rented an apartment in hungary-budapest. I know a good contact! See my profile!

lol budapest isin my price range. i've considered leaving many times to avoid overinflated house prices and extortionate mortgage repayments. i.e anything over 3.5% on 80k+ loan

Joe_B_5

happyfish wrote: »

Hi all
Longtime viewer, first time poster.

I wasnt thinking about a mortgage until a freind of mine told me that he got a 100% mortgage for the sum of £160,000.
His repayments are £1000 per month.
This got me thinking, as I thought he'd be paying back more per month.

I pay that a month in rent.
So now Im thinking about a buying, but have very little savings. (£3000)

I earn around 30,000 a year my girlfriend just under 20,000 a year
we've seen a few Bungalows for around 160,000
She is 10 weeks pregnant but gets 9 months full pay maternity leave.

So a few questions.

1: As she is not looking obviously pregnant at the moment. Would she have to declare that she is pregnant, and will only be going back to work part time after the 9 months, when we apply for a mortgage?

2: Is it still possible to get a 100% mortgage

3 Has the stamp duty been changed yet? I know they were talking about it.

Any advice much appreciated

Hi there,

As for your 3 questions,
1. Yes you should technically state on a mortgage application that you have a child on the way.
2. I am not aware of mortgages over 95%, which would mean you need an 8k depsoit plus cash for associated costs. ie stamp duty, solicitors, etc
3. Stamp duty on 160k would be 1%.

That said, earning 50k pa between you should leave you in a relatively strong position for buying a house, from an income multiple perspective you aren't particularly stretching yourself. It's just a matter of saving for the bigger deposit. But whilst saving, house prices may well fall further and it's worth noting that in the current climate you can possibly get away with a low bid as there won't be too much competition for buying places.

Hope thats somewhat helpful.

Nettybuyer

Hello

Im looking at applying for a mortgage with my partner. Now he has bad credit rating and earns approx 12K. I have a good credit rating and Earn 18K.

We are currently renting togeather and pay over £550 a month my name is on the rent book and he's allowed to live with me. He puts money in my account every month towards rent and bill, can i use this £500 a month as additonal income (its regular) when applying for a mortage ?

The Mortgage is with Crest Nichloson on there Easy Buy Scheme (75%) if that means any thing.

Thank you

Boudoir_Babe

This thread is a little too quite, given the current credit crunch. If you want to keep instep with what's happening simply buy a newspaper, switch on the TV/ radio, it's the subject of every news bulletin, and will probably run well into the New Year! Fortunately I'm not a FTB, but if I was the best advice I could give would be to stay at home with your folks as long as possible to save at least 10% deposit and consider a shared ownership mortgage You should also consider how you plan to furnish it. There offering 0% deals on virtually everything now. According to analysts, it's a buyers market now with the Council of Mortgage Lenders predicting 45, 000 homes could be repossessed before Christmas. Ho, Ho, Ho? I don't think so :-(

_Andy_

Nettybuyer wrote: »

Hello

Im looking at applying for a mortgage with my partner. Now he has bad credit rating and earns approx 12K. I have a good credit rating and Earn 18K.

We are currently renting togeather and pay over £550 a month my name is on the rent book and he's allowed to live with me. He puts money in my account every month towards rent and bill, can i use this £500 a month as additonal income (its regular) when applying for a mortage ?

The Mortgage is with Crest Nichloson on there Easy Buy Scheme (75%) if that means any thing.

Thank you

No - not unless he's going to be jointly taking out a mortgage with you.