To mortgage or not to mortgage?

djcat

Hello, been reading on here for a while but posting a message now as I was offered a place that is really all I want and I am considering applying for a mortgage for the first time. I am not sure if I shouldn't wait a few more months when I will have more money as a deposit, whilst I am also afraid to loose the opportunity to get that property, which is also in an excellent location.

The financial adviser said I shouldn't have a problem to get the mortgage because I have a decent income and my credit history is clean, my major issue is that I only have 5% deposit as I was paying off debts so I would need to go for a 95% mortgage. Per financial adviser the only ones doing that at the moment are Skipton for a 5.99% rate. In three months I will have saved another 5% so be able to get a 90% mortgage. From the financial side, I know the answer is to wait a little longer. However I want THAT place for several reasons I will not go into now.

My questions:

- Are there other 95% mortgage offers or really just Skipton?

- How long does a maisonette in great location usually stay on the market before its taken? (I know its impossible to say for sure, but if you can post your experience that would be great).

- Given that it would probably take 3 months anyway to move in from the time I make the offer (provided I get the mortgage), is there a way to secure the property now and make an offer based on the 90% mortgage I will be able to apply for in 3 months?

- I've been reading on this forum that lenders are very picky when it comes to 95% mortgages, whats your experience with Skipton? Its my first mortgage application and I don't want any records for denied mortgage applications on my credit history.

- If you have experience in this matter, how much should I expect to spend in repair & maintenance within the next 6 months for a well build house from the 1960's? It seems to be in excellent condition but I am afraid of e.g. burst pipes.

I managed to get GBP 45K in 2009, GBP 40K in 2010 and this year I already made GBP 51K and expect to get another GBP 10K in 2011. I don't have any missed payments on my CC or any other bills, was able to save GBP 6K in three months and pay off GBP 5K on my CC and overdraft. By your experience, do you believe that I will have issues to get a mortgage for GBP 160K ?

Thank for your help!

GMS

Is the maisonette an ex local authority property? If so you may find lenders unwilling to lend at 95%.

What is your income? Are you based in UK and paying UK tax?

iwantahome

Do you have the money for your fees as well as the 5% deposit?

djcat

I work in this company since April and make GBP 71K with a basic of GBP 40K. I am based in the UK and paying UK tax. Not sure if it was a council estate, doesn't look like it at all but it was built in 1964 - not sure how council flats looked back in those days (before my time).

djcat

iwantahome wrote: »

Do you have the money for your fees as well as the 5% deposit?

Yes, I do. Fees come to about 600 pounds the adviser told me.

dimbo61

Solictor,searches,survey( just valuation or full survey!),moving costs, mortgage set up fees,
Things to pay once you move in phone line/ broadband/sky, council tax, set up gas/electric etc repairs, decorating
More like £2600

djcat

dimbo61 wrote: »

Solictor,searches,survey( just valuation or full survey!),moving costs, mortgage set up fees,
Things to pay once you move in phone line/ broadband/sky, council tax, set up gas/electric etc repairs, decorating
More like £2600

Oh thats ok, I was just talking about the mortgage setup fees. The other things I already got or am paying for anyway - am renting a flat now. Of course I hope not to have too many repairs in the new place.

djcat

GMS wrote: »

Is the maisonette an ex local authority property? If so you may find lenders unwilling to lend at 95%.

What is your income? Are you based in UK and paying UK tax?

Thanks for the heads up on the ex local authority thing, I asked the real estate agent and will let you know when she comes back to me.