First time buyer question

mlgt

Yes I agree it is alot of money for the council flat, but they have offered me the £16 maximum discount.
I cant find any decent properties in South London for the same price for a 3 bedroom house/flat. Unless I travel into work.

Its a shame I didnt buy earlier when they bought in the law

spadoosh

poppysarah wrote: »

Why not just buy something for 115?


33 years is a long time.

like a shed or an alotment?!

take it you didnt notice he was trying to buy a ex council flat for £230k and therefore would really struggle to find anything for less than £200k by the sounds of it.

Btw you could get a nice semi round my way for £115k

sonastin

Not based on anything other than guesswork...

Is the 33 year perhaps based on their "affordability" criteria rather than what you have worked out you can actually afford to pay back? £115k is 4.6 x your salary which is a fairly high mulitple. If your wife's salary isn't being taken into account, their calculator might treat her as a dependent which might reduce what it thinks you can afford to repay. So in a "computer says no" kind of way, its decided that you can only afford to borrow £115k if you take a long time to pay it back, but as the risk to the bank is low because of the good LTV, they are prepared to lend over that time????

If that's the case, I'd take it and go with the overpayment route to bring down the term of the mortgage as quickly as possible.

mlgt

Its hard to buy anything of a decent size in London sadly. Unless I am willing to travel in by train each day which adds an extra £1-2k each for journeys into work.

For the same price of £230k I can buy 2 bedroom flats but in not so desirable areas. I know for the money I am paying I can get some nice properties well outside of London.
But wanting to be closer to family is the main concern.

mlgt

Thanks Sonastin. I believe this is the route I will take after calculating some sums in my head.
My wife & I are able to keep payments and overpay the difference of up to 10% borrowed so it means at the current rate of £1000 per month = £12000 a year X 2 = £24000.

So I hope to be able to pay off this property in under 10 years if we are doing the repayment rate like this.

Thanks for the advice all. Please feel free to continue your advice.

PasturesNew

I remember when a quarter of a million was a FORTUNE!!! - to be spoken of only with excited tones, in tones of awe.

They probably built the whole block for less than that.

goldbyron

Its a normal price for us Londoners I am afraid. Even ex LA esp. in inner city areas. Outer London you could get an ex LA house for that price at least! LOL.

spadoosh

I thought LTV only affected the rates the bank would charge you. And looking at the rates youve been offered id say your getting a good deal. I recentl applied for a mortgage with halifax (ftb 5.99% fixed) 2 options 1: 100k over 25 yr 2: 100k over 40 years. Absolutlely no difference in rates or costs (as %) Broker went on to say if we managed 75% instead of 85% they could offer us 5.29% fixed

Dont think LTV affects term of mortgage

mlgt

G_M wrote: »

I went to the bank and with my income of £25k
Just the one bank? Shop around. Better still go to an IFA who will shop around for you.

Who is/will be on the house deeds? You'll need the names on the mortgage to match the names on the deeds.

No I went to a IFA who advised me of 2 banks they can approach.

I then went to Natwest and told them the offer from the IFA.
They then offered me a mortage deal from 2.99% to 2.75% with no arrangement fee.

I went back to the IFA and told him this and he met the 2.75%, but required an arragement fee of £500, then solicitor fees of over £1500.

Whereas I sourced a solicitor which was cheaper than the IFA quote.

The deeds are under (application form) My fathers, my brothers and my name. Hence my wife cannot be part of the application.

With the scenario that my wife is able to be on the mortgage of course the outcome was different with the bank lending me over £215k and a reduced lifespan.

mlgt

Indeed they probably did build the property for less than that. I also have to bear in mind any additional upgrades. However Im in a good position because I applied for the property after they had fitted double glazing.
But my property compared to the ones for sale in the same estate are all 2 bedroom flats, but all modernised. So I guess I mustnt grumble.

It is a mighty shame I did not buy the property when my mother passed away as we would have been eligable for the 70% discount. This making this question redundant.
But at least I am starting my first babystep on the property ladder.

Thanks all for the replies