Some advice - FTB

ncrawley

Me and my Fiance are looking at getting out first house soon, I'm waiting on a pay rise from work which should come next month.

When I get the pay rise I will be on £15000 before tax and my Fiance will be on about £12500

I have £10000-15000 to put down as a deposit. Do you reckon we stand any chance of getting a house we have seen that is on the market for around £119k? It's been on for a bit so could probably get the price down if it's still available.

Would any mortgage companies let us have this amount in these current times? Obviously we need the monthly payments to be below £700 otherwise we would struggle.

We were thinking of going to a local agent, The Nottingham.

P.S. is it possible for us to a view a house when we haven't even been to a mortgage company yet? I really want to view this particular house but I feel like I will be wasting peoples time if were not quite ready just yet (but could be by the end of next month and the house has been available for a while!)

sammy_wheeler

is that 700 a month including insurances, bills, food, running a car etc
or do you mean £700 a month only on mortgage

re viewings- you can do this at any time although some sellers who have been messed around a lot ask ea to check viewers situation in order for them to not recieve people who are not in the position to buy

why dont you pop to a estate agents and talk to their mortgage adviser- they will be able to tlk to you about general rates and how much you would be paying a month

InsertWittyName

I'd be surprised if you get a mortgage for 119k - your combined earnings are £27.5k and ball park figure of 3x that (£82.5k) for a joint mortgage.

Your sizeable deposit will help you in your application.

Good luck and let us know how you get on.

kingstreet

Assuming a £119k purchase price and putting down your stated maximum deposit, you're going to need around the maximum you'll be able to borrow to get the mortgage you need.

A £104k mortgage over 25 years at a historically realistic 6% per annum would leave you with payments of £673 per month.

I would suggest going nowhere near an estate agency adviser. Many of them charge a fee, have a limited lending panel, only consider commission paying lenders, are tied to a single life company and will want to sell you other services, such as conveyancing.

An independent mortgage broker will charge you a fee but will access the whole market, including direct to lender deals. If he receives a commission from a lender he'll rebate it to you to offset the fee you pay. Failing that, a whole market broker will source from the products of lenders paying him commission but you'll have to look at direct products yourself.

You do not have to take mortgage advice before you view, although estate agents will try to convince you you do.

ncrawley

sammy_wheeler wrote: »

is that 700 a month including insurances, bills, food, running a car etc
or do you mean £700 a month only on mortgage

re viewings- you can do this at any time although some sellers who have been messed around a lot ask ea to check viewers situation in order for them to not recieve people who are not in the position to buy

why dont you pop to a estate agents and talk to their mortgage adviser- they will be able to tlk to you about general rates and how much you would be paying a month

to give you a general idea- our mortgage will be £91k we have 10% deposit (house up for £102k- offer accepted) and our motgage payments- including building and content insurance, life insurance is £624 a month- obvioulsy we have to pay for council tax, gas, electic, water, food, car, social life, on top of that. but we on £55kk between us- so its doable for us

Yes I meant just on the Mortgage :rotfl:

Sounds to me like were going to struggle even if we can get the house down by a few thousand, thanks for all the advice guys, albeit not what I wanted to hear

ncrawley

I've notice the Nottingham building society website mentions they can offer up to 3.75X combined income, that would make it about 103k they could be willing to lend us, add on my deposit of 15k and it could be doable, but obviosuly that's only if they do offer that. The estimate of my girlfriend being on 12.5k is just an estimate as she is paid weekly and not had chance to figure out the exact figure but it's at least 12.5k definatley no less.

They have 2 deals at the moment for FTB's, the 1st is fixed for 3 years at 5.99 then onto a variable starting at 6.14, the other is fixed for 5 years at 6.39 then going to a variable of 6.14.

Were both still only 21 so could possibly do it over 30 years instead of 25 years, unless you have no say in this?

kingstreet

You pick the term you want. For interest reasons, the shorter the term the better. However, you can address the issue of the term later on when you become more established, so a 30 year term is something you can consider as long as you know the pitfalls.

I've just keyed the case into Mortgage Brain, based on the following;-

App 1 - £15,000
App 2 - £12,500

Purchase price £119,000
Deposit £15,000

Mortgage £104,000 on three year fix over 25 or 30 years. I've taken low-fee products as these offer better value on lower mortgage amounts.

The overall best output is;-

Nationwide 5.39% £631.84 (£583.34 over 30 yrs) per month with fees of £749.

You need a FlexAccount for this product, so it might be worth looking into before you go any further. Nationwide's affordability calculator shows a maximum mortgage of £105,600 assuming no dependents and no credit comittments with more than six months remaining.

Matt_1985

I am in a similar position to yourself. I and my partner are close to our savings target now and have begun to view properties around £120k @ 90% LTV. We have seen a few mortgage lenders and YBS have come out on top to date.

4.19% fixed for 2 years (£995)
4.39% fixed for 2 years (£95)

I would recommend downloading the mortgage comparison spreadsheet from MSE Forums and the budget planner tool from MSE. Do not leave any stone unturned.

Money.co.uk compare a range of mortgages that I have found useful in the past and don't forget to give L&C a call (as per MSE mortgage guide) that I intend to do closer to the 'right' time.

Our joint incomes come in slightly higher than yours at just shy of £36k and I wouldn't dream of paying nearly £700 a month on just a mortgage.

There are a few handy tools online for researching your dream home such as 'mouseprices', 'property price advice' and 'property-bee'. These can come in handy for negotiating.

Don't forget to put money aside for fees i.e. legal/furniture etc.

Hope this helps...

ncrawley

Matt_1985 wrote: »

I am in a similar position to yourself. I and my partner are close to our savings target now and have begun to view properties around £120k @ 90% LTV. We have seen a few mortgage lenders and YBS have come out on top to date.

4.19% fixed for 2 years (£995)
4.39% fixed for 2 years (£95)

I would recommend downloading the mortgage comparison spreadsheet from MSE Forums and the budget planner tool from MSE. Do not leave any stone unturned.

Money.co.uk compare a range of mortgages that I have found useful in the past and don't forget to give L&C a call (as per MSE mortgage guide) that I intend to do closer to the 'right' time.

Our joint incomes come in slightly higher than yours at just shy of £36k and I wouldn't dream of paying nearly £700 a month on just a mortgage.

There are a few handy tools online for researching your dream home such as 'mouseprices', 'property price advice' and 'property-bee'. These can come in handy for negotiating.

Don't forget to put money aside for fees i.e. legal/furniture etc.

Hope this helps...

Thanks for all the advice, will sort through all the info on here with the other half at the weekend and get a folder sorted with all the info etc, had some disappointing news today that I will only be going up to £14.5K and not 15K as first expected, that £500 makes all the difference lol!

We have now tallied up that my other half gets 12.7k a year so a combined total of £27.7k

I myself actually have a total at the moment of £25k saved up however I'm only willing to put 15 of that down so we have enough for furniture and appliance etc My fiance has a few thousand saved up for the mortgage fees etc as well so should be no problem

We will discuss with the Nottingham to see what they can offer at the end of next month/start of November once I've got my pay rise, hopefully their kind and sort something out because the house were looking at is being sold by them as well so they may do something for us.

We know we can afford it all, obviously they could think otherwise

kingstreet

Don't forget these costings are based on you paying the £119k asking price. Hopefully this is over-estimating and you won't need as much as quoted for.

ncrawley

kingstreet wrote: »

Don't forget these costings are based on you paying the £119k asking price. Hopefully this is over-estimating and you won't need as much as quoted for.

Exactly, I'm quietly confident (assuming the house is still around and it's as good as it looks) but I won't get too far ahead of myself thinking we could afford it so I'm not too dissapointed