1st Time Buyer.... with parents?

januszjasinski

Hi all!

I saw a house I like :T and would like to go for it!

• House valued at £142500
• I am a 1st time buyer
• I graduated in 2003
• I have an income of around £24000
• I have outgoings of around £200

My parents have 6 years left on their mortgage. I was wondering if would be best if:

• Parents pay off theirs and then come in with me on mine
• I get a mortgage just for myself
• Any other possibilities?

I am with HSBC and they do a 'graduate service'. Is this just a con or actually worth going on? They have agreed £113k in principal and with savings of around £30k, I could get the property by myself but was wondering if a better option would be to share with parents?

Thanks!

Janusz

herbiesjp

Are the £200 outgoings actual credit commitments i.e loans/cards etc?

What deal have HSBC offered you?

Personally I would not involve your parents if you do not need to, as if they own a share of this property as well, it could potentially lead to tax liabilities for them at a later stage

januszjasinski

£200 outgoings at the moment:

• Mobile Phone Bill
• Internet
• Student Loan
• Misc.

They have offered me a deal *in principle* of £113k and have showed me 2-3 options of repayment schemes which seem fine to me.

I heard Abbey (the bank!) were offering good rates and offers? Is this true or does my mate just want his sister to get more referrals?

Thanks!

JJ

herbiesjp

januszjasinski wrote:

I heard Abbey (the bank!) were offering good rates and offers? Is this true or does my mate just want his sister to get more referrals?

Thanks!

JJ

It sounds like it

Without knowing the rates HSBC has offered and what you are looking for it is difficult to say whether there is anything better out there. Are you looking for fixed/discounted/tracker/capped etc?

januszjasinski

• Fixed
• Discounted
• Tracker
• Capped

Whatever would be cheapest in the long-run!

JJ

MortgageMamma

Hi JJ

Why don't you just get your parents to go guarantor on your mortgage then they won;t be on the deeds. Their affordability will be assessed in the same way as yours. There are quite a few lenders that can do this for you. Are you looking for a 100% mortgage or do you have a deposit? There is one specific lender I know of that is particularly good at this sort of thing but because of the high income stretch you really need to take the advice of a decent whole of market advisor.

MM

januszjasinski

Yup

Sorry - that's what I mean at the start, should I get them in as guarantors

I do have a deposit. Values have changed slightly but basically I have a comfortable deposit of £15k but can stretch up to £20k or thereabouts.

JJ

P.S.

A top chap has found me the following:

20 Year Term
5.09% fixed until 31/07/2008 = £797.93 pm
£295 booking fee
£175 basic survey fee REFUNDED on completion
Overall cost over 20 years is £203,716

I think this sounds good with the information below

• Income £24,000
• Property price £142,500
• Mortgage needed £120,000
• Repayment mortgage basis
• Fixed rate

Conveyancing Quotes comes in at around £2500 and includes Stamp Duty.

Good deal?