Help the first time buyer, please !

rooban

Hi all,

After renting and living at home i have decided to jump on the property market and buy a first time home/flat. I can put 25% deposit and need mortgage for the rest. Basically the 75% is around 7 times my earnings and I kanow that most lenders only would consider around 4 - 5 times your earnings. Are there any Good lenders who are willing to do 6 - 7 times knowing that I have 25% of the deposit. I am a very strong saver and very little spender, you know what I mean. I am looking for some lender who won't rip me off with high Interest rates by giving me 100% mortgage and charging an arm and leg for the repayment interest. Just some one who's resonable and understanding.

babitat

A good lender wouldn't lend you 6-7 times your income.

Sarahpuggy

I think the most i have ever seen is 5 times salaries, but i think even these have special criteria..
Im sure someone will come along and give you better advice than that though!

AndrewSmith

I think you will find it incredibly difficult to find a lender to agree to 6-7 times your income as a first time buyer. As a broker I would advise you not to do it.

At that level of borrowing one must question the affordability of the repayments and whether borrowing so heavily in an environment of potentially increasing interest rates is the right thing to do.

Andy

rooban

Thanks guys. That gave me some sense.

rjh090384

U NEED TO FIND A BROKER THAT WILL TAKE INTO ACCOUNT NOT YOUR INCOME BUT YOUR OUTGOINGS TO SEE IF YOU CAN AFFORD THIS MROTGAGE. alliance and leicester did this for us we got 5 times our salaries.

mi-key

I would say the only way you should ever consider a mortgate at 7x is if you have a) a secure job, b) are extremely self disciplined in your spending and c) are getting a very long term, i.e. 10 years fixed rate at a very low interest rate.

Any kind of mortgage where you are going to have to take pot luck in 2, 3 or even 5 years time that the monthly payments arent going to suddenly increase a fair whack is going to be a major risk.

If I was in your shoes, I'd carry on saving for another year or two and see what happens with prices - if they do stay static or drop, or you get a pay rise and have saved up even more of a deposit, then you'll be in a much better position to buy.

BobProperty

mi-key wrote:

I would say the only way you should ever consider a mortgate at 7x is if you have a) a secure job, b) are extremely self disciplined in your spending and c) are getting a very long term, i.e. 10 years fixed rate at a very low interest rate.....

I'd add a d) You are at the early stage in a classic professional career like medicine or law where you are 1 unlikely to be short of work and 2 have a career path with "higher than wage inflation" pay rises for a number of years.

Lighteater

You could look at lease options, where you rent and pay a bit more so that your deposit builds up over time.

Where do you want to live?