Some advice - FTB

ncrawley

Just an update to this, the house we were looking at was sold but I'm not too dissapointed!

I didn't get my full pay rise I was hoping for but I am now on £14.5k and my partner is on £12.7k - we have seen a house that is on the market for £114950 but this has been on a while as well so could hopefully get the price down.

We have a phone meeting with the Nottingham bulding society on Saturday to discuss it.

In my initial call they asked me for our wage info and if we are intrested in a house and what price it is and she didn't say oh theres no way you could affrod that (which I think they might have said maybe?)

What do you think our chances are on a combined wage of 27.2k, a £10k deposit and a house on the market for £114950?

GMS

10k deposit is not 10%. You would need a miimum of 10% to get a mortgage realistically.

There may well be better options than Nottigham.

kingstreet

ncrawley wrote: »

a £10k deposit

£10k or 10%?

ncrawley

£10,000 deposit not 10%, so you really don't think we have any chance? Why didn't they say anything and still arrange an interview on the phone then because they asked how much the house was up for and they knew our wages so why continue with arranging something if there is no point?

We could stretch to 12,000 deposit but that is at a push!

GMS

Apologies. According to their website they offer a 95% mortgage so 10k would be enough of a deposit.

Good luck

ncrawley

GMS wrote: »

Apologies. According to their website they offer a 95% mortgage so 10k would be enough of a deposit.

Good luck

It's ok, just wanted to see if it was asking too much, I know they have the 95% ones, but I have read bits and bobs round here saying to avoid them, is this true?

As I have said in the previous post as well we could stretch to 12,000 deposit which would be about 10% if we can get the price down a bit?

kingstreet

At the likely purchase price you are indicating, you might be applying for a 90% mortgage, or you might be applying for 95%.

I'm not giving any indication of your chances of success. I'm still trying to establish the factual position. If you'd like an opinion, a 95% mortgage is much harder to get than one at 90%. The rate will also be worse and there will be fewer lenders available to you.

In your circumstances, I'd limit my purchase price to £100k to ensure I was at or below 90% to maximise my chances.

maurice28

Hi,

Obviously the experts are well on with advising you on which mortgage would be best for you and your chances of success. I just wanted to wish you luck and just reiterate how important it is to make sure you can actually afford to run the house after the excitement of buying it (apologies if that sounds patronising, it really isn’t meant to!)

I assume you’ve sat down with your girlfriend and added your wages together then worked out everything you would pay for in a month? The mortgage will be the big one of course, but don’t forget all the other bills. My girlfriend and I pay £501 a month currently for our mortgage but then on top of that pay around £600 a month on other bills (utilities, food, TV/broadband/Internet, house insurance, car costs etc).

If you have sat down and worked out that you can afford it, also think about what would happen if one of you lost your job, or your circumstances change in some other way (again, if that’s patronising just tell me where to go!)

Don’t want to put a dampener on things, just wanted to make sure everything was considered! Good luck, hope it all works out for you both.

ncrawley

maurice28 wrote: »

Hi,

Obviously the experts are well on with advising you on which mortgage would be best for you and your chances of success. I just wanted to wish you luck and just reiterate how important it is to make sure you can actually afford to run the house after the excitement of buying it (apologies if that sounds patronising, it really isn’t meant to!)

I assume you’ve sat down with your girlfriend and added your wages together then worked out everything you would pay for in a month? The mortgage will be the big one of course, but don’t forget all the other bills. My girlfriend and I pay £501 a month currently for our mortgage but then on top of that pay around £600 a month on other bills (utilities, food, TV/broadband/Internet, house insurance, car costs etc).

If you have sat down and worked out that you can afford it, also think about what would happen if one of you lost your job, or your circumstances change in some other way (again, if that’s patronising just tell me where to go!)

Don’t want to put a dampener on things, just wanted to make sure everything was considered! Good luck, hope it all works out for you both.

Hi,

It doesn't sound patronising at all!

We have had a sit down and gone through all the monthly costs etc and on all occasions used the worst case scenario for the cost of things i.e saying the mortgage could be £700 a month and food bill 400 a month even though we hope that is unlikely so we know we will be able to cope, obviously it will be tough especially in this climate but it's doable!

We actually have arranged a viewing for the the house in a few weeks so I am hoping we are told we will be able to afford it and get an AIP on Saturday by the Nottingham otherwise will have to cancel the viewing because it would be wasting there time but thought we would arrange it in hope!

ncrawley

Well we have an agreement in principal on a 90% mortgage with a purchase price of about £110,000 so hopefully we can get the house were looking at for that or less, I mean it's been on for nearly a year for £114,950 so hopefully we can get it for £110,000 or less (assuming its as nice as it looks from the outside as not been inside yet!!)

So obviously will have to put a bit more down that a £10,000 deposit it just means a bit less money to spend on furniture etc!