Couple looking for first mortgage

Legacy_user

Hi All,

Have been reading these forums and there is some great advice on here so hoping to reap some of that myself.

Myself and the g/f are looking to get our first mortgage and we know it is going to be difficult. We are both not that well clued up on what type of mortgage to go for and also whether or not we would stand a chance of getting one in the first place. We earn £30,000 between us at the moment and have a £25000 deposit which we have managed to save so hopefully this might help boost our case.

Just hoping that there is someone on here who has been in our scenario and/or has any advice that might help us.

Thanks in advance all

maninthestreet

What properties are available in your area for about £100-120K ??

System

we have seen a property for £120000 but they are looking for a quick sale so hoping a 105000/107500 offer might tempt them as we wouldn't want anything over £110000 as we don't want to be skint every month. What is the best way to find a mortgage provider? go direct to a bank/BS or go through a broker to find it for us?

maninthestreet

Do you have any debts. e.g loans, credit cards?? This can affect the amount of money you can borrow.

System

I have a student loan of 2.3k and credit cards of 3k but I have the money to pay the cc off this week so will be doing that. The g/f has a car loan that ends in June next year paying £140 a month. Other than that no we don't have any other debts.

getmore4less

Have you done SOA for how you live now and What if we bought one to see what you can afford?

http://www.makesenseofcards.co.uk/soacalc.html

This will make the situation a lot clearer.

herbiesjp

You should be fine getting a mortgage assuming you have had no problems with credit history.

The rate available to you will depend ultimately on the property value you are looking at, and what percentage deposit you are putting down.

If you can put a 25% deposit you will get the better rates. Anything less, and you can still get the mortgage, just slightly higher rates.

The type of property can also dictate whether or not a lender will agree a mortgage, so you need to double check on that front, along with length of remaining lease if it is a flat.

System

ok developents that have happened,

been to see the tsb and been approved for a mortgage up to £138000. Been to see a house that we like and was quoted 139995 but offered £120000 and had it accepted. Its a new house so hopefully that makes things easier. Now comes the tricky part of deciding which mortgage to go with. We have a £25000 deposit and LLoyds TSB have given us rates of 4.6% for a tracker or 5.6 for a fixed 2 year mortgage. Will be checking other providers but just wondering if anyone had any experience in our position and advice?

herbiesjp

If you are buying a new build make sure you fit criteria in terms of maximum loan the chosen lender will agree - newbuilds have got restrictions.

System

Ok thanks, we mentioned that the house was new to the initial mortgage provider and they said that it had to be a minimum 20% deposit etc. Do you mean anything else as well as tbh I’m not exactly massively clued up on all this

nancyo

Make sure you have a mortgage in place before submitting any offers...just to make sure you will get one ok - My partner and I have NO DEBT and earn around £65k a year and were unable to get a mortgage for £120k, still very unsure why - we are in the process of going to another lender!