1st Time Buyer

garcon6

Went to Barclays and we can get a mortgage for £150,000. I have £30,000 deposit and my wife earns roughly £26,000. At the moment I am working part time not permanent, unfortunately if you have savings most of it will go on the deposit. Barclays quoted £763 as an estimate of monthly payments, but i am sure it would be possible to borrow a bit morelike £160,000. Does anynoe know if there are better deals around at the moment i am sure Barclays are expensive and every 2 years you have to pay £999 to buy a new product.

Just need some general advice, as this is an important step in our lives.

thanks,

Garcon6

blueberrypie

When you say "we can get a mortgage", what do you mean? That you've been approved in principle, that you've put your earnings into their on-line calculator, or something in-between? It's just...was the person who said you could borrow this including your current earnings? If not, you're looking at borrowing nearly six times your wife's salary, which is a very high multiple.

Barclays don't seem any more expensive than any other lender, from what I see. The best deal for any specific borrower depends on lots of different factors, though, and Barclays might or might not have the best product for you.

And you don't have to buy a new product every two years. Even if you go for a two-year fixed rate (and there are also three- and five-year fixed rates available from Barclays right now), at the end of the fixed rate you go onto a follow-on rate (usually either a tracker or SVR) - that is standard for all mortgages, by the way.

You are right that it is an important step, and a good decision now could cost or save you many thousands in the long run. For that reason, if you're not sure how it all works (and it doesn't sound as though you are, to be honest), I'd really recommend you see an advisor - an independent one, not someone who works in a bank or estate agency.

garcon6

Some useful points which i will bear in mind, thankyou, you are very knowledegable.