NEW MEMBER - Mortgage Advice Required

FTB1985

Hi everyone new to this forum although I have been reading for a while.

Anyways I'm 25 and have been renting since I was 18, moved house lots due to work and never had chance to settle. Anyways now I'm ready to make the plunge and I want to get on the property ladder.

I am currently living in a fantastic property but it is rented and I am paying £550pm. A house nearby has come up and is available as part of a 'conditional auction'. This house was previously on the market for £85K and it has a starting bid of just £50K. The area is OK and its somewhere I would be willing to live no questions asked.

I've got a decent job and I'm currently on around £35K per annum although over the next five years this is expected to double and possibly even treble.

My problem however is I have very little deposit. I can muster up £5K at a push, at this level the mortgages available seem to push the interest rate right up. Plus on such a small mortgage I'd rather pay it off in say 10 or 15 years. I could have a 15 year mortgage and still be paying less then I do in rent currently.

So what am I waiting for you might ask? Well I realise this is probably the biggest decision I will ever make so don't want to rush into it. I am looking for some mortgage advice and where to find the best deal for someone like myself.

Any advice would be greatly appreciated.

Regards

minnie123

I might be wrong but I thought you needed a minimum of 10% deposit at the moment and also money for fees on top so 5k won't be enough. Propertys sold at auction always have low estimates so it's not likely to go for 50k.

I would keep saving if I was you.

TrickyDicky

I would save save save.
With 35k/year coming in, thats £1900 a month after tax. After you take out rent, food maybe a car, and other expenses, you should have several hundred to save each month.

Any mortgage underwriter will want to know where your money goes each month if you have a decent salary and very little savings.

croppedbear

We have our house on the market but got the chance of buying a repossession. As we needed to proceed straight away my morgage free partner appplied & was approved in principal by the Halifax. This morning they withdrew the offer completely citing "we've changed our terms & conditions".
After 2 hours with our broker he got a mortgage from Abbey only to be turned down on credit rating. When the broker contacted them direct the real reason is FT Buyers need at least 25% deposit.
We've obviously withdrwan our offer & hopefully will get a buyer at some stage BUT if anyone is looking for a first time buyer you could be waiting for a long time and if your a FTB they are looking at you putting down a substantial deposit(we were putting down £10k on a property on the market for £79,500)

bOingball

croppedbear wrote: »

We have our house on the market but got the chance of buying a repossession. As we needed to proceed straight away my morgage free partner appplied & was approved in principal by the Halifax. This morning they withdrew the offer completely citing "we've changed our terms & conditions".
After 2 hours with our broker he got a mortgage from Abbey only to be turned down on credit rating. When the broker contacted them direct the real reason is FT Buyers need at least 25% deposit.
We've obviously withdrwan our offer & hopefully will get a buyer at some stage BUT if anyone is looking for a first time buyer you could be waiting for a long time and if your a FTB they are looking at you putting down a substantial deposit(we were putting down £10k on a property on the market for £79,500)

I'm a first time buyer with my other half and have been accepted with 15% deposit with the Post Office, Offer of Loan was signed and sent on the weekend (8 days after my AIP was done :j )

So 25% deposit is someone telling porkies.... :mad:
(15% was £17,600 - mortgage was ~£99k)

maninthestreet

FTB1985 wrote: »

Hi everyone new to this forum although I have been reading for a while.

Anyways I'm 25 and have been renting since I was 18, moved house lots due to work and never had chance to settle. Anyways now I'm ready to make the plunge and I want to get on the property ladder.

I am currently living in a fantastic property but it is rented and I am paying £550pm. A house nearby has come up and is available as part of a 'conditional auction'. This house was previously on the market for £85K and it has a starting bid of just £50K. The area is OK and its somewhere I would be willing to live no questions asked.

I've got a decent job and I'm currently on around £35K per annum although over the next five years this is expected to double and possibly even treble.

My problem however is I have very little deposit. I can muster up £5K at a push, at this level the mortgages available seem to push the interest rate right up. Plus on such a small mortgage I'd rather pay it off in say 10 or 15 years. I could have a 15 year mortgage and still be paying less then I do in rent currently.

So what am I waiting for you might ask? Well I realise this is probably the biggest decision I will ever make so don't want to rush into it. I am looking for some mortgage advice and where to find the best deal for someone like myself.

Any advice would be greatly appreciated.

Regards

Please explain what you mean by a 'conditional auction'.
What job are you in that your pay will double or even treble in just 5 years?
If you are a FTB, buying at auction is best avoided. £50K is just the starting bid, the price it may actually sell for could be considerably more, and you would need your mortgage offer confirmed prior to bidding.

jockosjungle

I am a FTB, got accepted on 10% deposit with the Post Office.

Also if you are buying at an auction, there is a reason property goes to an auction, quite often it is because it needs selling quickly or may require substantial work or be built on dodgy ground, you wouldn't know this unless you did the work and paid for it before you started bidding

R