first time buyer advice ( sorry )

tommyboy33

Hi guy’s im looking for some advice for a friend that’s just bought a house she’s a first time buyer. Her details are

Income £21000
Mortgage £ 60000
Savings £6000

I’m a bit confused on which mortgage is suitable, im thinking 3 year fixed, just for the security that she wil know how much exactly she be paying each mounth, im not sure if a 3 or 5 year fixed would be best as I don’t know how long she intends staying there.
She was gong to go for a 100% mortgage but from reading on here ive gathered this isn’t a great idea ?. She was wanting to use her savings to do the place up but I was thinking a cashback deal would give back much of the deposit she had to pay out does this make sense, should I consider any other mortgage, does anyone know of the best deals just now

Thanks for your help

Tom

_Andy_

She's just bought the house? So she doesn't have a mortgage on it at the moment? Confused.

tommyboy33

Sorry, to be more exact she’s put a offer in and it has been accepted, she had a mortgage agreed in principle with northern rock I think it was the together mortgage, were they lend you the value of the deposit in this case 3000 pounds as a unsecured loan and the remaining 57800 (800 in fees which seems high to me) as a mortgage obviously its not a great idea to take out a loan for £3000 over 25 years if you can manage to get hold of the deposit yourself, I was just looking for some help before she went for this mortgage


Thanks

Tom

Leon_W

I would look at the possibility of a 95% mortgage (which should be at a lower rate) and the deposit on a credit card.

Sounds crazy doesn't it ? But if your canny you can switch cards, pay 0% interest and pay it off much quicker than £3k over 25years. You'll also benefit from the cheaper mortgage so the money you save could also go to repaying the card.

Regards
Leon W

tommyboy33

Thanks Leon, yes I tried to explain that to her, she could use he savings just now for the deposit and apply for a credit card after her mortgage went threw and use the card to buy the new kitchen and bathroom but she wouldn’t listen she’s terrified of getting into debt with cards, which I must admit is probably a good attitude to have, but handled carefully it’s a much better option than the 100% mortgage


Thanks

Tom