do i need a broker? FTB advice

shootermcgavin

hi all hope you can share a bit of advice knowledge with me!

heres my story...

im a first time buyer looking to get my first home. i have saved up enough to put down a 10% deposit and have money for furnishing, repairs, improvements etc left over.

i currently earn £23000 a year standard plus maybe another £2k overtime at a push. according to most online calculators i can borrow around £95k, my problem is i would like to borrow a bit more, i would ideally like to get approved for £125k mortgage with £12500 deposit (maybe £15000) so borrowing about £112500/£110000.

i have no debts, nothing on credit cards, no loans, no overdraft and basically no outgoings at the moment apart from running my car and mobile phone which is not much. i have checked my credit rating and it is excellent.

do you think anyone would lend me up to that amount? the reason i want it is i would like to buy a 2 bedroom house so i can get a lodger in for the spare room to pay a bit of the mortgage so i dont have to move in a few years time.

if i couldnt get the mortgage myself my parents are willing to be guarantors or take a percentage of the mortgage. do many banks take gaurantors on mortgages anymore? or is there a way where we can get a mortgage where i have a 90% stake and my parents have 10% or something like that?

sorry for all the questions, i am trying to decide whether to get a broker to try and sort it out or not, i know what i want - a fixed deal over 2-3 years and have done a lot of research online to find the best deal(not many on 90% LTV) but i dont know about the whole guarantor/split mortgage thing.

any advice/recommendations are very much appreciated.

ryan.

Money_Yoda

Ryan - you've hit on the main reason most people shoudl use brokers; it's not about the rate but all the other bits and pieces that make buying property so much fun (and I use the word fun quite wrongly)...

There are lenders that will do guarantor mortgages, but they are few and far between now. Most lenders would be more happy to take your parents as joint applicants BUT this raises issues over the term the mortgage can then run over (as your parents retirement dates could limit things) and their mortgage/debts would come into the equation.

Finally you can't own a property on a mortgage in bits - the lender will only accept you all owning the property jointly for mortgage purposes. However you can get your solicitor to draw up a Declaration of Trust which outlines who has what stake in the property for when you come to sell it.

Sorry if that all sounds very complex, I guess the answer is YES speak to a good broker that you feel you can trust!?!