1st House buying blog...

Pressleyno1

The Mortgage - Agreement in Princaple

We have an AIP for a secured mortgage of up to £90250.

This is subject to -

~ A satisfactory valuation of the property
~ Satisfactory references being provided - I don't understand this bit
~ The info we supplied being correct

I said in the application I was on £17500, I have since moved jobs and now I'm on a basic £15000, but with the £17500 I had no overtime at all, but with the £15k basic I have alot more overtime potential, so hmmmm

They are saiy they will ask for previous payslips, p60's, then they send a letter to my employer to get all the details about my wage etc, however I can get them to say I am on more if needed.

So...

Loan amount - £90250 plus £1230 in legal fees !

This will be interest only for 2 years, this is to allow us to pay of the HP and loans we have, it also means I will have a pay rise in 2 years time.

Deposit is £5k

The lender is Northern Rock, and its at a fixed rate of 5.19% for 25 months. After 25 months it says it will goto their standard variable rate of !!!! 7.09% !!!! for the remaining term - THIS I AM CONCERNED ABOUT !

The total amount paid back is hard reading.... £250,116 !!!!

This means we will be paying back £2.74 for ever pound borrowed, but thats with the ridiculous 7% odd they are quoting.

Overall cost is 7.2 % !


So for the first 2 years the monthly payments are £394 between 2 of us. Then for 275 more monthly payments, £539 a month ! SERIOUSLY NEED TO LOOK AT THIS, 7.09% I FEEL SICK !

It also states we will owe £91230 at the end of the term, this is the capital from the 1st 2 years of intrest only, THIS IS ALSO A WORRY !

djm1972

Pressleyno1 wrote:

2. Now we need to find a solicitor, still to do this, any reccomendations ?

Quite often with new builds the developer will introduce you to the solicitor who will be acting for them; and this is often cheaper than finding your own solicitor because they will already be familiar with the lease (read: they won't bother reading it!)

Even if there isn't a discount; I would still recommend asking the developer who they will be using and then consider instructing them to act for you also.

Pressleyno1

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FEES PAYABLE TO NORTHERN ROCK

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Arrangement fee which has to be paid before the mortgage starts - £1195

Valuation fee of £350

Valuation admin fee £75

Telegraphic transfer fee - £35

Deeds release fee - £250

Legal fees - £117


Now what I'd like to know is they want £2000+ before we've even started, are we getting bumped or is this standard ?!?!?!


THIS IS ALL VERY SCARY FIGURES - I THINK I NEED SOME GOOD GOOD ADVICE. SOMEONE TO GIVE ME SOME KIND OF IDIOTS GUIDE !

Pressleyno1

And to make matters worse I've just dooked a digestive into my tea and it broke off

leftieM

Pressleyno1 wrote:

£200k for a 1 bedroom !?

Yes, it was something like that. Maybe 180k. It was in euros. It was in mega expensive crash-waiting-to-happen Dublin. Nutter prices there.
I should add his flat is in a rough part of the city too!

Pressleyno1

Hmmmm, that does seem crazy !