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Are we in a good position or not.?

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Hi.

I'm after a bit of advice and the advice on hear seems pretty good.

My partner and I looking to buy in the first half of next year..

My take home is £1200 a month and from this my out goings are only £40 for a mobile phone contract.

My partners take home is £1300 a month but she has a Loan and credit card and the out goings for theese is approx £300 a month.


We will be looking at a 95% mortgage on a property with a value of about 100k -105k.

How good or bad will we be looked upon by lenders.?

we are both in long term steady employment and should have good credit scores..

Thank You..

..Tony..

Comments

  • opinions4u
    opinions4u Posts: 19,411 Forumite
    edited 30 November 2009 at 10:15PM
    You will need a 10% deposit (ideally 15%) minimum together with enough to cover your up front fees.

    I'd suggest you review ways to save harder!

    The amount you're looking for shouldn't be a problem. It's all about the deposit size.
  • EV2UK
    EV2UK Posts: 9 Forumite
    edited 30 November 2009 at 10:16PM
    wow that was a quick reply.

    I've seen advertised the Lloyds 'lend a hand' deal which states you only need a 5% cash deposit etc..

    I have seen other 95% LTV deals advertised, if we could get one of theese it would help us to cover fees etc..


    ..Tony..
  • opinions4u
    opinions4u Posts: 19,411 Forumite
    EV2UK wrote: »
    I've seen advertised the Lloyds 'lend a hand' deal which states you only need a 5% cash deposit etc..
    But their web site points out that "Your helper will need savings equal to 20% of the property value." - so it needs a 25% deposit really!
    I have seen other 95% LTV deals advertised, if we could get one of theese it would help us to cover fees etc..
    Where?
  • The lend a hand deal may be possible with the help from my parents, and I'm sure I've seen a few 95% deals advertised.....? are they avaliable..?

    Tony
  • _Andy_
    _Andy_ Posts: 11,150 Forumite
    Hi Tony and welcome to MSE:)

    Make sure as well as deposit, you budget for things like

    Legal fees
    Valuation cost
    Cost of moving
    Furniture
    Changing locks
    Decorating
    Renovation
    Maintenance of the property
    Contingency
    etc

    Best of luck
  • The 95% deals are tough, and the rates high. Also for the Lloyds one the parent's deposit is secured against the property so there are risks attached.

    Just save as hard as you can, if you are both living with parents it's surprising how much you can save. If you have nothing saved currently then you will have a job getting £10k, but if you already have £5k then it should be easy.
  • benjo
    benjo Posts: 482 Forumite
    _Andy_ wrote: »
    Hi Tony and welcome to MSE:)

    Make sure as well as deposit, you budget for things like

    Legal fees
    Valuation cost
    Cost of moving
    Furniture
    Changing locks
    Decorating
    Renovation
    Maintenance of the property
    Contingency
    etc

    Best of luck

    Great list Andy, added to that you would be well advised to include some more moeny for.......

    Enough money to pay off your current utilities gas, electric, water, council tax, telephone, TV provider etc - if you are moving region and are not able to just transfer your current deals you will have to pay up the final amount and restart with new providers.

    Broker fees - if you use a broker who charges a fee.
    Product fee - this can usually be added to the life of the mortgage though not always.

    Mail redirection service.

    Take away food fund, while all your pots, pans, plates, knifes and forks are in boxes at one end or the other.

    Credit for your mobile phone or a higher monthly bill, since it can be pot luck getting BT (insert other service provider here) to connect your landline on time.

    Andy mentions furniture, when we moved the vendors took every curtain pole in the house and all the carpets downstairs. My curtains didnt fit, so I paid to get them altered - more money, but cheaper than buying new. New slate floor fitted throughout the lounge and dinning room - 2k. I didnt think I would need new furniture - since I had great stuff that I was very happy with - until the removal men couldnt get it into the new (well built in 1870) cottage. So despite having perfectly good wardrobes and settee - I had to buy new and smaller, dont assume your furniture will fit.

    Insurances - if you are currently renting you probably wont be budgeting for critical illness, buildings, chancel repair insurance etc.

    Goodluck, it is an exciting time. Get saving hard now, you can do it!
  • Loans and credit card debt may count against you when applying for a mortgage, to the extent where they may consider deducting the debt values from any savings you have. Even though we had 50k+ in savings, we had £4k on a 0% credit card, and they still flagged it up as a minor issue. with larger debt/savings ratio, it's likely to be flagged as a larger problem

    It might be best to try and save more as well as pay off all existing debt.
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