First time buyer advice needed...

alirob12

Hi My girlfriend and I are both in full time employment earning gf - 13k and im on 14,5k we would like to buy a 2bedroom house for under 125k to avoid stamp duty etc. we have no debts and out of our income we currently have no outgoings (apart from 1mobile phone bill and car insurance and petrol). We currently have no deposit (but I suppose we will be able to provide 5k as a deposit -we are also building a property abroad and invested already 40k and would like a mortgage for about 135k to get us a house in the uk and have a bit of spare cash to finish our villa abroad. (which we plan to rent out 2help us pay the mortgage off quicker )
So could someone please let us know, realisticly speaking, what sort of figure can we expect, - We apparently have a great credit score, and what is the best mortgage to go for? I would like to be able to pay off more than monthly payments if I have some spare cash, steady and the one wher I am paying off the amount borrowed as well as interest. What sort of rates are available at present and (good rates) and could someone tell me which mortgage brokers are worth going to (I ve heard that banks often offer their product that is often of much higher interest then independent brokers.)

Thanks for any advice!!:T

MONEYSAVER_3

Hi

Intelligent Finance is excellent you get your mortgage/current account to offset against each other hence saving money and can overpay to pay the mortgage off alot quicker I have been with them for over 5 yrs and had try changing but it can not be beat is brill

http://www.if.com/

another of this type is the ONE ACCOUNT

http://www.oneaccount.com/onev3/index.html

hope that helps

Moneysaver:rotfl:

bitza81

My advice to you is not to use a mortgage adviser based within an estate agents (they may say they are independant, yet have only a panel of 10 or 12 companies to choose from).

Avoid the banks, they are not always your cheapest and have limited options available.

I would suggest using an established independant mortgage adviser, who is able to do a whole of market comparison.

You may have to pay for the service but it can often save you a lot of money in the long run.

My first mortgage through a estate agent mortgage broker nearly crippled us, after three years we were able to change.
This year we remortgaged using an independant (whole of market) mortgage adviser who reduced our rate by 2%. We added 30K to our existing mortgage and pay only £50 a month more.

Don't be afraid to speak to several advisers- you have to be able to trust them. Never feel obliged either, its your money at the end of the day.

Helen :A

homer_j_3

if you are wanting to borrow more than the house is worth - i.e. 135k on a property less than 125k to avoid stamp duty, then there are only 2 companies that you can consider. These are Coventry (moregage) and Northern Rock (together mortgage).

The way that these accounts work is that you secure a maximum of 95% of the property value against the property and then you take the rest as an unsecured loan up to a maximum of 30% (30k is the maximum with Northern Rock and 25k with the coventry if the 30% exceeds this amount!)

With regards to the amount you can borrow, with the NR your income multiples are determined by your credit score and if you come with a medium/high credit score you may be able to borrow slightly more with the NR than coventry.

If you base your calculations of 4x joint salary then this will give you the coventry income multiple and therefore provide you with an idea of what you can borrow (110k to my tired brain).

I would seek advice from a whole of market broker on the basis that borrowing more than the property is worth is not right for everybody and you will need to understand the full consequences and you may find it better to get a 95%-100% mortgage which will provide a better rate/cheaper payment. A good broker who has the opportunity to fully understand your circumstance will be able to structure your mortgage correctly for you.

homer_j_3

bitza81 wrote:

My advice to you is not to use a mortgage adviser based within an estate agents (they may say they are independant, yet have only a panel of 10 or 12 companies to choose from).

Avoid the banks, they are not always your cheapest and have limited options available.

I would suggest using an established independant mortgage adviser, who is able to do a whole of market comparison.

You may have to pay for the service but it can often save you a lot of money in the long run.

My first mortgage through a estate agent mortgage broker nearly crippled us, after three years we were able to change.
This year we remortgaged using an independant (whole of market) mortgage adviser who reduced our rate by 2%. We added 30K to our existing mortgage and pay only £50 a month more.

Don't be afraid to speak to several advisers- you have to be able to trust them. Never feel obliged either, its your money at the end of the day.

Helen :A

Hmmmmmm

I think you are correct in saying that when dealing with ANY broker, it is key to make sure that they have whole of market status or a decent selection of lenders to look at as 12 is pretty limited.

I would like to clarify that not all brokers based in estate agencies have limited access. I have access to 40 different lenders and work within an estate agency.

Clearly your experience has had some bearing on your opinion and I fully understand that however we are not all that bad lol!!

itzmee

homer_j wrote:

if you are wanting to borrow more than the house is worth - i.e. 135k on a property less than 125k to avoid stamp duty, then there are only 2 companies that you can consider. These are Coventry (moregage) and Northern Rock (together mortgage).

The way that these accounts work is that you secure a maximum of 95% of the property value against the property and then you take the rest as an unsecured loan up to a maximum of 30% (30k is the maximum with Northern Rock and 25k with the coventry if the 30% exceeds this amount!)

With regards to the amount you can borrow, with the NR your income multiples are determined by your credit score and if you come with a medium/high credit score you may be able to borrow slightly more with the NR than coventry.

If you base your calculations of 4x joint salary then this will give you the coventry income multiple and therefore provide you with an idea of what you can borrow (110k to my tired brain).

I would seek advice from a whole of market broker on the basis that borrowing more than the property is worth is not right for everybody and you will need to understand the full consequences and you may find it better to get a 95%-100% mortgage which will provide a better rate/cheaper payment. A good broker who has the opportunity to fully understand your circumstance will be able to structure your mortgage correctly for you.

Actually the OP wouldn't be able to get the MOREgage from the Coventry as the minimum earnings for this scheme are £15k and even for a 95% residential mortgage they would only get 3.6x joint salary

MORPH3US

Hi OP,

You are building a property abroad, but don't have a house in the UK?!?!

You are on a combined income of £27.5k and you can afford to build a property abroad and a mortgage.

You are either the worlds best savers, or you won the lottery.... would you like to explain how :beer: , because i'm sure it would help a lot of people on here.

Myself and my gf are on almost double what the OP and OP's OH are on and we are skint after mortgage and overpayments and we don't waste cash.... :mad:

M

roswell

I think the oP is living on the wild side ... dangerouse knife edge if your going to try balance building a property abroad and purchasing a Uk house .... I would really recomend you hold out till your property abroad if built and rented out .... Just hope its not seasonal lettings where you have a empty place for 9 months of the year ...

alirob12

ok ok... first of all could some1 pls explain to me what op stands for??
next issue - well currently we live on site where we work, so basically all our expenses are paid for so for the last 6years all our payslips were basically our spending money with nothing to pay for (we even got our petrol paid for and car maintenance), so we ve decided to invest money in the villa in the country where my family originates from. So we got the land (over half an acre) and completed the first stage (walls up and roof, floors etc) so we need about 30k to finish the whole project completely. (6bedrooms, 4bathrooms, pool,etc) when its finished if we just sell it we will have made (estimated 70k+ profit)but we would like it to be our holiday house, and most of our friends would like to go already and its not even finished!,
thats why we are trying to get the final figure to secure the finish of our house (that will include the help from our parents, and grand parents, and will only be 10k short, thats why I would like to get a mortgage to cover a house in the uk and give me a couple of extra thousands)
so basically thats the secret, if you have any questions post them and i will try 2 answer, and remember, I dont think there is another country where the properties are as expensive as in the UK!,

MORPH3US

OP = Original Poster (or original post)!

I think its time I got a job living on site with all my bills paid....

Do you mind if I ask what job it was / is that you are doing?

M

alirob12

yeah sure,i work in a youth residential centre, and hav been for the past 6 yrs(im only 24) so that allowed me to graduate from uni with no debt!! and put away some savings (which we hav used for the villa), it has been great being able to do things and save up and all but now we r trying 2 get the house in the uk, and profits from the holiday house will hopefully be payin off the mortgage...