What Am I Paying For ?

jedmc571

Hello,
I recently saw an I.F.A regards a mortgage of £160k on a £200k property
I am starting a new job soon with a salary of £33k inc bonus but before overtime and have a £40k deposit
I gave all the details and it was suggested to Self Cert ? and was astonished when I received the paperwork showing a figure of £1600 (1% of the loan) plus £100 to set it up ? ( I have no idea who the lender was)

I am really quite astounded at having to pay £1700 pounds just to get a mortgage, does this sound right ?
I did see datails on the site about setting it up Via L & C which would be apparently free, but I am still unsure which would be the best mortgage to take, I would be happy to pay a small commission to a broker but £1600 for the privilege is rediculous.
I am looking to get moving on this soonest, if anyone can help please mail me.
I did put a similar post some time ago and got some replies, but I'm useless with computers and can't find them ?

Regards

Jed ( who after reading this comes accross as pretty dumb :-) )

dunstonh

If you dont want a fee based IFA, then see an IFA or mortgage advisor that won't charge you on that basis. There are loads out there.

Joe_Bloggs

Can't you rent for now until you are settled in in your new job. House prices are expected to fall and your new income is not backed by any documentary record with your future employer. You would need a really good interest rate to be able to afford 160K on 33K salary. How good was your interest rate offer and for how long ?
Joe_Bloggs.

jedmc571

Hi Joe_Bloggs
The rate was 5.84% fixed for 2 years
I have no monthly outgoings apart from the usual gas /elec and I could afford around £1k perhaps a little more a month (for the right house )
Uncertainty prevails ! I could rent for 6 months but I'd rather pay my mortgage than someone elses.
Thanks for your reply

Jed

Caz2_2

Hi Jed
If you go on https://www.charcol.co.uk there is a mortgage calculator that i found really good. This year I changed my mortgage on line through marketplace.co.uk and paid nothing for advice (only cost was evaluation when I took it out) I think your prioblem is that you want to borrow so much just be careful sounds a lot and i woundn't pay that for advice as you said you don't even know who its with but thats because IFA will be worried you'll go and find the same deal deal for yourself. You interest rate sounds too high. PS be careful with self cert mortgages you have to sign declaring you earn what you are claiming for. Good luck