first time buyer help pleaseeee :)

caylansmummy

hio im jsut wondering if anyone could give me some advice

im 27 my partners 28 and we have 1 child, at the minute were living with my parents, we have £6,000 deposit at the minute

theres some new taylor wimpey homes being built and they have the offer of 5% deposit, taylor wimpey pay 15% of your deposit and then you have to pay it back after 10 yrs

anyway spoke to their mrtgages people and they sauid the only people who would offer a mortgage is halifax and it would be £550 a month for 35 years?? surely this isnt right?? the house is worth £115,00 so £550 per month for 30 years is £231,000 we would pay back?? have they got this wrong?? surely they have??

secondly for some reason my partner told the mortgage people i live with my paretns n he livers with his? would this have any effect on the mortgage offers??

we dont have any debt, i.e dont have credit cards or loans, we have a car which is £176 a month with only 2 yrs left to pay of it..we are both in our overdrafts me £400 him £600

can anyone give me any advice or recommend any other mortgage brokers that offer 5% mortgages

jonny_power

Some Building Societies (Nottingham, Yorkshire BS and Yorkshire Bank, Skipton(?) are doing 95% LTV). I'd suggest you clear your overdrafts first because apparently they really look into your finances with a fine toothed comb. What does your total annual income look like? We spoke to Yorkshire Bank a while ago and they ask for your last 3 months bank statements so it's probably worth showing perfect statements so they can see you can manage your money. For a 115k house then a 6k deposit is only just cover 95% LTV, you'll have to factor in your fees etc.

You'll repay a lot more than the price of the house with a mortgage over 35 years. Repay it quicker and you accrue less interest and therefore repay less in total. Ask Halifax to calculate your repayments for a 20 or 25 year term and see if they look managable.

CheeseCat

With the Nottingham the maximum you can get is 10% - I can't remember which it was but for 5% you have to be buying a local property or have an account with them (I forget now as I wanted 10% anyway)

That doesnt sound too unreasonable (the payback amount) like whats already been said if you can afford to overpay or have a shorter term the costs will come down. Mine is something equally ridiculous but I am planning to overpay by quite a large amount.

I would concentrate on getting rid of your overdrafts and the car loan before you buy. If you can't afford to live at the moment without needing credit it'll be worse when you have a mortgage to pay.

How are you planning to pay back the 15% after 10 years? And will it be 15% of the house value in 10 years time - can you afford that?

caylansmummy

the think is there houses are being built at the min and to clear our overdraft it would only take us to £5,000 deposit and cant really hold out as some of these houses already have people living in them and the rest are bring built, the house we want there is only 4 being built on the plot and 1 has already been sold and 1 is under offer, so dont really have the time to clear our overdrafts

our total income before tax is about £30,000 as i only work part time, it was £550 a month over 35 years, so if we lowered it to 25 years the monthly payments would be to expensive...

its terrible trying to get onto the property ladder...they dont give anyone the chance to make a go of things..perphaps we would both be better off sitting at home on our backsides all day and getting a council house ( im joking by the way) lol its just so frustrating!!

thanks for your help i really appreciate it!

caylansmummy

what nearly double the house amount doesnt seem unreasonable?? wow thats a lot ( mind you im not really clued up with all this mortgage lark)

the only reason we have the car loan is our other car needed work doing to it, the car was worth £12,500 we paid £9,000 cash and got the £3,500 on finance as we didnt have the rest at the time (looking back now we should have got a car for £9,000 so we didnt have to get finance) but at the time wasnt looking to buy a house :-/

thanks for your help

CheeseCat

It really shouldnt be so unmanageable on your income. I am buying a house on my own with a £22k income and my payments are £410/m over 25 years.

My house isn't as costly as yours (£75k) but the % of cost to household income doesnt seem much different. Then again I guess your car loan takes quite a big chunk at the moment doesn't it?

I wouldn't let the 'urgency' of the houses being built make you feel like you're forced into it - if you're not ready you're not ready and perhaps its not meant to be. How many of the houses are vacant? Apparently house buying is at an all time low if the media is to be believed - I can't imagine the unbuilt new builds being snapped up, I guess it depends on how popular the area is.

Edited to add: I said it doesnt sound unreasonable because its over 35 years - a 35 year loan is going to rack up alot of interest!

poppysarah

Yes a mortgage costs an insane amount. Making it over 35 years is 10 years longer than normal, plus having to borrow some money off the company too.

All slightly insane if you ask me.

Save for longer. Don't buy new build.

gerry_mc

If you are intent on buying the house then initially taking it over 35 years is no problem. It means you are lowering your initial monthly outlay. Just because you initially take it at 35 years doesnt mean you always have to have it at 35 years! You can bring it down each time you remortgage as long as your income allows it.

BitterAndTwisted

Look, these are not financially astute people making sensible long-term plans. They have savings but both are running overdrafts. OP claims it will take too long to clear their overdrafts of less that £1k each. They are running a car for which they paid £9k in cash and financed the balance of £3.5k which is costing them £176 a month with "only" 2 years left to pay. Who really needs to buy a car for £12.5k when you have a combined income of only £30K?

Never mind that loan-deposit thing from the developers which will need to be paid back. These are people who cannot afford to buy this particular property with that particular deal. Not in a month of Sundays

eschaton

BitterAndTwisted wrote: »

Look, these are not financially astute people making sensible long-term plans. They have savings but both are running overdrafts. OP claims it will take too long to clear their overdrafts of less that £1k each. They are running a car for which they paid £9k in cash and financed the balance of £3.5k which is costing them £176 a month with "only" 2 years left to pay. Who really needs to buy a car for £12.5k when you have a combined income of only £30K?

Never mind that loan-deposit thing from the developers which will need to be paid back. These are people who cannot afford to buy this particular property with that particular deal. Not in a month of Sundays

Saved me from typing that out

Only £5k for a deposit - that would be swallowed up in legal fees and new home set up costs.

Deposit really is hee haw.

On about total repayment cost of a mortgage and sitting with a £3.5k car loan that still has £4224 outstanding.

Can't afford a 25 year mortgage - how will they afford this 15% payment in 10 years time.

Living in cloud cuckoo land I think.

J_i_m

Yeah, the best advice really is to clear your debts, including overdrafts, credit cards. loans etc and then start saving money in earnest.

Personally, so far in my life it barley even occurred to me that it would be a good idea to save money for something like a mortgage, so I've spent much of what I earn and I to am in debt.

I've woken up somewhat now, I'm working hard to get out of my overdraft and keep a positive balance, I'm doing my best to live within my means and to cut my house hold costs etc, I'll be moving out my rented accommodation soon and back in with my parents, which should help me clear off my debts and enable me to start saving money at a good rate.

I certainly don't intend on having a mortgage at the same time as still paying of my car finance and other bank loan, besides when both are settled I will be able to save significantly more money to amass a higher deposit.

I think this might have something to do with your family, on how willing they are to accommodation you and your children, if they're happy to help out, then stay put and get your debts paid off, and save properly for a mortgage.