First Time Buyer Query

SHEILA54

My son is looking to buy a house for approx £225,000. He may look to move in 3-5 years to set up with his girlfriend. He has saved £35,000, though would like to keep £10,000 for improvements to the house.

Has anyone got any suggestions as to the best type of mortgage for him ? He'd ideally like a mortgage with no redemption penalty, and one he can overpay on as he gets a 5 figure bonus each year.

MortgageMamma

There are various mortgages on the UK marketplace, literally thousands of them, so many would suit his needs on first glance. But without knowing your sons income, expenditure, credit commitments, credit history, and other factors and going through the full mortgage advice process it is not possible to recommend a product from one specific lender.

If you want to post mroe details I will try and help

cattie

No doubt it will pay him to go to see a whole of market mortgage broker to find the most suitable product for him.

I have a discounted tracker mortgage, no set up costs or fee's nor redemption penalties, plus I can overpay by any amount as well. I chose this type of mortgage as it's my intention to move within the next couple of years.

SHEILA54

My son earns £49,000 per year, and also has a bonus that is typically £10-15,000 each March. He clears £2,560 a month as he pays £100 into a company SAYE scheme and £180 into company pension.

No loans etc. He just uses credit card which he pays off each month.

Expenditure is limited and roughly as follows:-

Car insurance £50
Petrol £120
Mobile Phone £30
Food £125
Going Out £150
Presents £75
Holiday £50
All Other £50
Total £650

Credit history is good. Already checked with Equifax

Hope this helps

hechizero

http://www.britannia.co.uk/mortgage/index.html These guys have good mortgages. Tracker is good for low rates, but if interest rates go up so do the payments. Fixed are good for security, the payments will stay the same even if rates go up, 2-3-5 year options are available.

Go to http://www.moneysupermarket.com/mortgages/mortgage.asp to compare various products.

If you need face to face advice you will be put in touch with a mortgage adviser when you view your first property after registering with an estate agent.

MortgageMamma

Does your son prefer fixed rates, trackers, discounts etc? does he need advising on the differences?

There is one lender at the moment offering competitive fixed rates with unlimited overpayments (most lenders will limit overpayments to 10% of mortgage balance per year). That could well be suitable. His income and credit status stack up for this particular lender.

AndrewSmith

hechizero wrote:

http://www.britannia.co.uk/mortgage/index.html These guys have good mortgages. Tracker is good for low rates, but if interest rates go up so do the payments. Fixed are good for security, the payments will stay the same even if rates go up, 2-3-5 year options are available.

Go to http://www.moneysupermarket.com/mortgages/mortgage.asp to compare various products.

If you need face to face advice you will be put in touch with a mortgage adviser when you view your first property after registering with an estate agent.

Moneysupermarket merely sell your contact details on the open market to the highest bidding Mortgage Broker via an affiliated company called PAA leads.

They have no controls in place as to the quality of the broker firm, nor do they employ or have affiliations with Mortgage Brokers or Advisers.

They are literally a massive lead generation company for all things financial.

They are an excellent resource for information only but I would never suggest anyone actually enter personal information in their site.

SHEILA54

MortgageMamma wrote:

Does your son prefer fixed rates, trackers, discounts etc? does he need advising on the differences?

There is one lender at the moment offering competitive fixed rates with unlimited overpayments (most lenders will limit overpayments to 10% of mortgage balance per year). That could well be suitable. His income and credit status stack up for this particular lender.

First of all thank you for your help so far, it is much appreciated.

My son would really be looking to get something fixed, but is open to all options at the moment. He's currently working on the presumption that interest rates are probably as good as they are going to be for the next 5-7 years. Any thoughts on this ?

If this is the case he would like to get a fixed rate mortgage, but wants to be able to move house if possible and take the mortgage with him. Would he typically incur high penalties for doing this ?

Would also be curious to see whether or not it is possible to add someone (partner) to a mortgage a couple of years down the line (subject to them having good credit rating)

With regards to the overpayments, he's essentially looking for a mortgage that would give him the ability to overpay by 5-8% each year without penalty.

Thanks for any thoughts you have

SHEILA54

wrote:

Thanks for your comments Andrew, useful to know not to go with that website !!

Would welcome any thoughts you have on my particular situation, all information is contained within the thread but am more than happy to go into detail