Found a house?

firehawk_2

Wow. right opposite me there is a house for sale. 3 bedrooms! Great kitchen - right opposite me!!!!!

£185,000

i currently rent and pay £600/month for a 1 bedroom ground floor flat (its a house but split in 2 seperate apartments)

Now, going to the estate agents website, they have their own mortgage calculator provided by a 3rd party mortgage company. it says that I need 20% deposit. at 10% im really stretching it.
20% deposit = 37,000

repayment is like £831.74 but interest is £555 ish. This is with a 20% deposit and the interest rate is 4.5%

at 10%:

deposit: 18,500
repayment: 935.71
interest: 624.37


what is best here in terms of getting a lower repayment or interest?
which is better? to do a repayment or just interest? Why?
The loan in that calculate is set to around 166,500.

Many thanks

Annisele

Looking at your other thread, I think you'll struggle unless your circumstances have changed quite a bit.

If you want a 90% LTV mortgage, you likely won't get one on an interest only basis (lots of lenders will only loan IO on 75% LTV or less). That means that it doesn't really matter whether repayment or IO is 'better'; you won't have a choice.

How much deposit do you actually have?

firehawk_2

deposit I have is £10,000. I have new work coming in which pays well and should get even more money in a short period of time however no guarentee that the house will be available by then!

Annisele

Sorry, but I can't see that you have any chance of getting a mortgage for that house right now.

Your £10k is only just over 5% of the value of the house - and quite a bit less than that once fees are taken into account. You are presumably still self employed, and your average income over three years was about £33k. I think that you'd be pushing things too far on both the deposit and the lender's affordability calculations.

firehawk_2

Thanks. well im getting more and more income now thankfully. and pretty much back to back contracts/clients with 2/3 week gap between them through my own choice (mark them as holidays if you will)

I guess its never really. so stupid...so expensive. yet it says its ideal for 1st time buyers....

I pay myself dividends. so usually its around 3600/month take home pay

paddedjohn

a friend of mine got a 42yr mortgage a few years back, if they are still available it might be an option for you to keep the payments down but you would probably still need the 20% deposit