First time buyer

rckngslnd

Hi

I'm moving out of my parents home, and was thinknig about renting but then someone mention that buying may be a better option for me overall, i currently would be looking ofr a flat of some king for around the £50k mark.

Details:
Earn £13150 a year
Have £10k in savings
Currently single
hoping to not spend more than £400 a month on rent/mortage

Would this be possilbe to get a mortage and still be able to surviour on, any help of advice would be welcome :money:

sheddy7

Hi

To me that looks reasonably do-able.

Working with a £50k property you could put down £7,500 deposit, leaving £2,500 for other costs (sols fees, mortgage fee and the like), and look for a 85% Mortgage of £42,500.

That would would work out as a Mortgage of about 3.2 to 3.3 times your salary which is not fantastic but should be acceptable to a lender. The fact that you have saved up £10k of your own money will help your case.

The only real sticking point would be if you have any credit card debts or similar that need servicing every month or a bad credit rating.

Assuming you were to get an 85% Mortgage I would expect your monthly repayments to be between £250 and £300 for a long term fix.

These are only a few quick calculations though so take with a pinch of salt. I think the best thing you could do is speak to an independent, whole of the market broker who will be able to give you more precise figures.

VIGILANT22

sheddy7..get upto date and undertstand the meaning of "independent"

sheddy7

Ooo, a cryptic clue

*googles*

Fair enough, I didn't realise that independent brokers and whole of the market brokers were mutually exclusive. Apparently a broker can only call himself independent if he charges a fee for his services. Does this stop him from being considered a whole of the market broker?

VIGILANT22

no he can be whole of market but NOT independent............

luckyfool

What? Independent means you need to offer a fee only option, but you can still also offer a commission option. I was not aware that this would stop you from being also Whole of Market. Vigilant22 can you point me to something confirming that this is the case as I would consider myself to be "independent" and also "whole of market"? My understanding was that the terms are not mutually exclusive. i.e. it is possible to be Whole of Market without being Independent. I suppose in a sense when you say Independent you are automatically also Whole of Market by definition, however I have never seen the problem in emphasising this to clients.

cheers.

VIGILANT22

luckyfool wrote: »

What? Independent means you need to offer a fee only option, but you can still also offer a commission option. I was not aware that this would stop you from being also Whole of Market. Vigilant22 can you point me to something confirming that this is the case as I would consider myself to be "independent" and also "whole of market"? My understanding was that the terms are not mutually exclusive. i.e. it is possible to be Whole of Market without being Independent. I suppose in a sense when you say Independent you are automatically also Whole of Market by definition, however I have never seen the problem in emphasising this to clients. cheers.

I said….
no he can be whole of market but NOT independent............

Quotelucky fool : I suppose in a sense when you say Independent you are automatically also Whole of Market by definition

This is very worrying when you think the 2 are exclusive of each other ??

Make no wonder people are hesitant of using a broker if you don't even know what status you operate under!.....

rckngslnd

thanks for help, no i have no debts apart from student loan, but i don't really count that as debt at moment

VIGILANT22

See a whole of market mortgage adviser........your student loan is PAYE.....

Dan_1976

Mortgage advice is not normally free and the way that you pay for a broker's services can vary enormously. Some brokers are paid commission - a set fee paid to the broker by a lender for selling one of their products. An 'independent' broker has access to mortgages from the whole market and will give you the option of paying a fee for his services to avoid any risk of product bias.