FTB advice please

oldham07

Hi

Would be grateful for any comments on our situation please.

My partner and I are looking to buy a house around easter time 2011. We will have approx 18K saved and earn £50K between us(teacher and local authority town planner).

We are thinking about buying in the region of £150K and both have decent credit history.

I think we may be able to get 90% mortgage .... but not sure about the money required on top of that for solicitors, survey, estate agent fee, mortgage fee etc.

Do you think that the above looks achievable or a little optimistic?

Also, when should we start making an appointment to see a mortgage broker to look at affordability and how do you find a good one that looks at the whole of the market?

Any comments would be appreciated. Thanks

tkitmike

Hi there,

I personally think you will struggle to get a 90% mortgage, some people are struggling to get an 80% mortgage at the moment. However, it does vary.

I suggest perhaps you go and speak to a Mortgage broker now, just to get some advice and a rough idea around fees and also what you can afford. You can then go and see them again in Easter to discuss it further.

oldham07

Thanks for the reply.

I've seen some 90% deals around - Post Office etc. What makes you say we would struggle to get one? Just curious.

beecher2

You say you have a 'decent' credit rating - it would have to be unblemished in order to get a 90% mortgage.

Have a look here http://www.direct.gov.uk/en/MoneyTaxAndBenefits/ManagingMoney/PlanningYourPersonalFinances/DG_10013610
for an idea about how much you will have to pay out

GMS

oldham07 wrote: »

Thanks for the reply.

I've seen some 90% deals around - Post Office etc. What makes you say we would struggle to get one? Just curious.

There is not enough information in your post to say whether you would struggle or not.
Speak to a broker for an idea of what is available.
Credit scoring is tight at 90% but you have not indicated any credit problems and your income seems fine.

oldham07

Thanks for the replies and thanks for the link which is helpful.

I'm pretty sure we are unblemished - no missed payments, credit cards paid off in full each month, been renting for few years so have background of paying bills every month, electoral roll etc.

I think I'll get credit reports for the two of use from Experian to double check and speak to a broker...... Fingers crossed!

herbiesjp

Make sure you are on electoral register as well, to improve your credit score. (score with the lenders that is).

josievg

You have the salary and the deposit for a mortgage of around 150K. As others have said get copies of your credit reports first. We discovered an error on one of ours so had to get that sorted out before we applied for a mortgage.

The credit report will also show if you are listed on the electoral roll - current and historic.

I wasn't sure if we would be approved for a 90% mortgage because I kept reading that it was difficult getting a mortgage without a higher deposit these days but there are 90% mortgages on offer.

So I worked on the assumption that, if these mortgages exist, some people must be getting them and applied on that basis.

We were approved straightaway. We applied direct to the Post Office.

Oh yes, also, presume you have checked how much the repayments will be and that you can afford it.

Good luck.

oldham07

Thanks very much for the helpful advice everyone!