First Time buyer need big mortgage

Gloomy_Past_Bright_Future

First posting on the mortgages board, please be gentle just looking for some advice.

In 2008, OH and I managed to pay off 72k in debt this was accomplished within 18 months.

We are both directors and share holders of our own company.

Since then we have managed to save nearly 60k for a deposit on a house. (Even though the first half of last year we were 40% down year on year, we are going to finish the year end 92% up Y on Y. There is only myself and hubby and the company will turn over a quarter of a million this year.

Our bank where we do all our own personal and business banking have offered us "over the phone", a mortgage of £550k, providing we put 50k down and at an amazing rate of 1.2% fixed for 5 years. They would also put a charge on our company. We have a meeting later in the week, we have however seen an amazing house we really want, put in an offer of of 540k (house on at 595k), it has been turned down as vendor is looking for 560k. We personally don't think it is worth 560k and don't think anyone will offer us that mortage anyway!

The estate agent has offered a meeting with their broker
To be honest I don't feel really comfortable talking to the estate agents broker about our finances, but I am also worried that the bank won't follow through with the offer as it is Lloyds and they are not known for being generous!

Our monthly take home salary varies between 5 and 10k per month. (pay minimum wage then dividends according to profit for the month). (between us - not each!)

Any advice?, stick to bank? or what??? Help??

Forgot to add we both have perfect credit ratings, still use our credit cards (for the reward points!) and pay them off in full every month

smcqis

Sorry i cant help but what a lucky position you are in

beecher2

an amazing rate of 1.2% fixed for 5 years.

I find this difficult to believe

VIGILANT22

Quote: Any advice?, stick to bank? or what??? Help??

See an experienced whole of market adviser....

beecher2

Gloomy_Past_Bright_Future wrote: »

a mortgage of £550k, providing we put 50k down

this is odd too as if you had a mortgage of £550k and a deposit of £50k, your LTV would be above 90%. Something doesn't ring true.....

getmore4less

beecher2 wrote: »

this is odd too as if you had a mortgage of £550k and a deposit of £50k, your LTV would be above 90%. Something doesn't ring true.....

Secured against house and business

Gloomy_Past_Bright_Future

I know this is why I am worried the bank will not "follow through".

Confusion over the mortgage it basically was we were allowed a house of up to 550k if we put 50k down, so therefore the mortgage will be 500k..

I know the 1.2% is good, they gave us the figures of interest only and repayment, but we have to put our company up as a guarantee so therefore a charge gets registered against us on Companies House, along with all our stock, and both our vehicles.

The company has done really well, we have been very lucky especially in this climate.

Will the estate agent broker give impartial advice? ie all of market advice?

redlady_1

In my experience, DO NOT use an estate agent broker. They are certainly tied in to certain deals not to mention, have no idea of what is out there. I would say they want to be nosey to see whether you can afford the house. Go to someone independent. It really is worth it.

As a matter of interest, why go for such an expensive property? Surely it would make more financial sense to get a smaller property with less mortgage?!

Gloomy_Past_Bright_Future

redlady_1 wrote: »

In my experience, DO NOT use an estate agent broker. They are certainly tied in to certain deals not to mention, have no idea of what is out there. I would say they want to be nosey to see whether you can afford the house. Go to someone independent. It really is worth it.

Good point!

redlady_1

And just be careful. You are pinning everything on this one house. What if the business goes pear shaped? What if the price of property falls? So many other factors to take into consideration and it seems the bank would basically take everything were you to default.

Gloomy_Past_Bright_Future

redlady_1 wrote: »

I
As a matter of interest, why go for such an expensive property? Surely it would make more financial sense to get a smaller property with less mortgage?!

We re nearing 40's, we have no pension or anything organised for our old age, we have two children under school age, we have moved around so much in our lives (especially me with my work, before starting out on our own), that we want to put down "roots", we wanted a house, were our children can grow up, where we can also run our business from home, (this has 3 acres of land), as renting a unit near us is minimum of £150 to £200 per week, which could be added to a mortgage!

Plan is to live in house until children grow "up" about 20 years then sell business and home together, then OH and I move into a tiny house and enjoy our retirement, well thats the dream anyway!

Anyone recommend a broker near Farnham?