What type of mortgage for me - I need one ASAP ?

gav_sw20

I need to sort a mortgage out ASAP, always rented and now need to move out of current place due to relationship hiccup :sad:

I've checked my Experian credit rating and it's @ 823 points - not sure if this is enough for a mortgage as this is new to me...any pointers at all ?

I'm looking to buy somewhere for about £125k and I have a £20k deposit.

I early £40k a year (£2363pcm) and currently have £1000pcm outgoings on rent, bills etc... and around £600pcm for living - the remaning approx £600pcm I have left I stick it in a savings account with HSBC.

With my current rent + money I currently save I'll have approx £900pcm that I can spend a month on mortgage, c/tax and bills.

1) Is it best to have an interest or repayment only ?

2) Is a fixed or tracker mortgage better ?

Any advice will be great as if I go into a bank for advice they're likely to advise in accordance with what they have to offer and push their mortgage on me ?

Have looked at Natwest and Yorkshire mortgages so far and they look quite reasonable.

Wh05apk

Credit scores are a total waste of money, and proove nothing, until there is one scoring system, and lenders publish how they allocate points, and what their minimums are it is purely an indication.

If you are on the voters roll and have not missed any credit payments, you should be ok, your income appears adequate.

Most lenders will now only do repayment, unless you have a suitable investment vehicle, fixed or tracker is up to you.

Thrugelmir

A number of lenders are now capping interest only mortgages at a 75% LTV. So your options may be limited in this regard.

dimbo61

Difficult to say what is best for someone with the limited info given and not knowing where you live,job,job security, lifestyle,saver/spender! ETC
Buying your first place has all sorts of expenses you never expect TV licence, broadband,aerial, phone line, new furniture , hoover, iron etc
Then you have insurance, life assurance, critical illness insurance, home/contents etc
Your age, education and how your career might progress are important as well.
I like the security of a fix for at least the first 3/5 years and most lenders now want repayment.
Try to have the term for 25 years or less! and build up savings/deposit while house hunting

Jojo1daffy

823 is a 'fair' score that indicates that you have had high credit commitments in the recent past. My score was 902 and I was refused by the Co-op Bank on that basis (high credit commitments etc) I had to send them my credit file to prove that wasn't the case. It's been a nightmare. Some people will say that the credit score means nothing but some lenders (ie The Co-op) do use them ( they quoted the Experian site verbatim). (oh and they also re-searched my file in error and because of the additional search my score has now gone to 823 - same as yours).

Jojo1daffy

Not that there's much wrong with 823 in this day and age..!