First mortgage help

smegy9

Myself and my girlfriend are looking into getting our first property, preferably a flat. We both currently stay with our parents in edinburgh and this is where we would like to buy.

We are hoping to start looking in June-ish, however we would like to know how much we can borrow.

Our incomes ar as follows:

Me 20K plus annual 10% profit share bonus

Her 14k

I should have a deposit of about 10 grand by June to put down on a house.


My questions are what are the next steps for us and how much would we be able to borrow? A decent property in edinburgh for both of us is likely to cost 110-125k

If anyone can help us or point us in the right direction that would be great.

fivemice

I think the first thing you need to do is visit a mortgage broker. There are articles on this site to help you find a good one (whole of market, fee free tends to be the best).

They would find out how much you could borrow, and help find the best deal for you.

Milky_Mocha

This site is brilliant at pointing people in the right direction when it comes to most things, including finding a mortgage. However I raise my eyebrows a little bit at the fact that everyone seems to suggest a zero-fee whole of market broker and as I recall a number of people responded to a previous poster's question by stating that one broker should be sufficient to secure a good deal.

I myself am in the process of obtaining a mortgage deal and started off as a total novice. I chose two brokers - one fee-free and one who charges a fee of close to £500. Incidentally the one who gave me the better deal happened to be the one who charged a fee. In spite of the fees I am still better off than the fee-free broker. You have nothing to lose by choosing a fee-charging broker as the fee is only payable when the mortgage and house purchase are completed. You could still walk away with a wealth of advice without paying a penny.

Both these brokers claimed to be 'whole-of-market' brokers yet one of them does not include a particular lender - Accord Mortgages - who have been given some good reviews on this site.

My suggestion, given my experience, is to choose two brokers (a second opinion always helps), one fee-free and one fee paying and ensure that both state that they cover the 'whole market' although I don't think there is a way you can verify this for sure.

herbiesjp

Welcome to the board smegy9

BAsed on just your two incomes you will be fine looking at the mortgage/property prices you indicate

Please remember that if you have any outstanding debts, or if you have children, or if you have had any adverse credit history, these coud impact on the amount a lender is willing to agree and the rate they are willing to offer.

If you can get a 10% deposit - it looks like you may be close to this - you can avoid having to pay a Higher Lending Charge with the majority of lenders.

As advised above have a read of Martin's guide, and then have a word with a whole of market mortgage adviser to see what they can find for you

HTH