First time buyer - what are our mortgage chances?

cowardlycustard

Hi all,

My partner and I are hoping to apply for a mortgage in a few months. We will be looking at houses in the £xx to £xx range and currently have £xx for the deposit (by the time we’re ready to apply, we’ll also have an additional £xx to cover fees and stamp duty since we’re not likely to complete before the March 2012 cut-off).

Our joint salary is just over £xx and our credit ratings are clean. No loans, no outstanding credit card balances lurking anywhere.

I’d really appreciate if anybody in the know can tell me if we’re likely to get accepted for a mortgage up to £xx as I’m completely new to this and am worried that lenders are being so strict now that we won’t get through. If there's anything we need to do to make us more acceptable, I'd rather know now and be able to do something about it!

Many thanks.

ACG

It shouldnt be a problem. Your main issue would be that you will only have 90% LTV mortgages available to you...meaning it wont be the cheapest.

If you could get your deposit up and stick to the lower end of your budget you might be able to get an 85% LTV which will be a little cheaper.

brit1234

I think you could but the interest rate would be high. On your salaries you could get a far bigger deposit in a year and cheaper rate.

Don't worry about the stamp duty return, properties will be cheaper after.

cowardlycustard

Thanks both, I think you have confirmed what I'd hoped/suspected.

We may be able to get up to 85% LTV if we delay by a couple of months, so perhaps that's what we'll do. Keen to get out of our tiny rented flat but another couple of months there won't hurt!!

Wh05apk

Please, do not listen to the "carp" the press put out, lenders are still lending for good applicants, and you look ideal, on your salaries £155k should be no problem, just make sure you are both on the voters roll, use credit cards, but ensure you have a direct debit st up to repay them in full, apart from that do not worry too much, rates at 90% ltv are not the best, but historically they are still cheap, and will probably be similar to renting.