First time mortgage advice

Brighton1

Hi


My partner and I are just about to start the journey to our first mortgage and I haven’t a clue where to start.

Does anyone have any advice please? I am uncertain of how much we can borrow – is it x3 or x 3.5 salary? Do we go through a broker or the high street?

We earn circa £80K plus £5K annual guaranteed bonus pa. Have about £10K saving (not enough I am sure) but do have an inheritance house I could use as collateral for the deposit (is that possible), but can not sell!

Any advice and recommendations would be gratefully received to mortgage novices. (I have printed off Martin’s mortgage guide to read tonight)

Thrugelmir

How much do you wish to borrow?

On a £80k income should be possible to build deposit quickly.

Brighton1

Thanks for the reply

We have been monitoring the housing market and a minimum of £250K up to £270K...

You are right - we are making a plan to get mega saving currently - recent relocation and increase in salary due to full time working means this is more possible now!

Yorkie1

Just to give an idea: if you are looking to borrow say £260K, a minimum of a 10% deposit will mean a property valued at max £288K. So you would need a minimum of £29K deposit plus stamp duty and legal fees.

getmore4less

Brighton1 wrote: »

Hi


My partner and I are just about to start the journey to our first mortgage and I haven’t a clue where to start.

Does anyone have any advice please? I am uncertain of how much we can borrow – is it x3 or x 3.5 salary? Do we go through a broker or the high street?

We earn circa £80K plus £5K annual guaranteed bonus pa. Have about £10K saving (not enough I am sure) but do have an inheritance house I could use as collateral for the deposit (is that possible), but can not sell!

You cannot use a property as collateral you would need to get a mortgage to release equity


Any advice and recommendations would be gratefully received to mortgage novices. (I have printed off Martin’s mortgage guide to read tonight)

Deposit and costs you need cash for those,

With properties over £250k think

£10k min for costs. stamp duty is 3% so £7.5k min.

£25k preferably £50k for deposit.

Income multiple will not be an issue untill you have a decent deposit.