FTB Questions

smckay

Hi we are looking to buy our first house together,

our joint income is around £40,000 and we have a £30,000 deposit.

We have had an agreement in principal for up to £150,000 (we will not be using this much!!!)

My main question is will a £130,000 be manageable?

Also if we got a 2yr fixed rate mortgage with Nationwide for example, what happens after 24 months when the 4.88% rate stops and the 6+% one takes over? Are we free to move our mortgage and renegotiate better terms?

lilybugs

smckay wrote:

My main question is will a £130,000 be manageable?

Only you can answer this question. Find out what the repayments are going to be and also look at the repayments after the fixed rate is up. Does this fit into your budget?

smckay wrote:

Also if we got a 2yr fixed rate mortgage with Nationwide for example, what happens after 24 months when the 4.88% rate stops and the 6+% one takes over? Are we free to move our mortgage and renegotiate better terms?

Each lender has different restrictions so you'll need to look at each one individually. It is likely that there will be a charge to move your mortgage to another lender after a fixed period expires.

amsutt98

Hiya
Me and my partner are in exactly the same position as you im a first time buyer with the same income (not such a big deposit though unfortunately) we got quoted the same amount that we could borrow, what we did is work out how much we're paying out now rent plus savings which equals £850 (which we do very comfortably) so were going to try and get a mortgage for that a month then we know if and when the interest rate goes up we can afford it, don't make the repayments each month the most you can afford because if and when the interest rates go up you wont be able to afford it. Remeber that most mortgages let you pay up to £500 on top of your payments without a fee so you can always pay a bit more the months you can afford to.

Nationwide will be able to tell you when you take out the mortgage how long you are tied in for (the time you have to pay a fee if you leave the mortgage)

We have gone for a mortgage where there are fees for the first 12 months then if we want to change there are no fees for leaving

smckay

thank you amsutt98, it is reassuring to here someone else say what I was thinking.

We are going for repayments of £851 2yr fixed and this is well within our means, overpayments are allowed if we feel we can pay them and our mortgage does have an initial setup fee so we decide to change our mortgage there are no further fees.

now to find a house!

jamminjamaica

i personally think you will be fine. i am buying £165k but thanks to sale of house only need £115k mortgage. plus my partner and i earn around £35k combined and we feel we can easily afford it. you just need to know what you are like with your money. i think you will be ok.

plus after your 2 years you can look for another good deal