First time buyer

Indispensable_Hobbes

Just searching for information at the moment.

I had a quick meeting today to see how much I can borrow. The gentleman told me the figure based only on my salary alone.

Amongst the questions he asked me about a deposit. Would I use it in the purchase or use it later.

What are the implications of both of these options?

UK007BullDog

Well, with a deposit you can borrow a bit more and you get a better rate as you are a lower risk. But if you have no deposit you pay for the priviledge of getting a 100% mortgage, higher fees, higher rate etc as you are a great risk to the lender.

Always try to put down at least 5% or better still 10% if you can.

herbiesjp

IF you have a deposit, I would suggest using it at the outset rather than using it later.

The reason is that you will get access to far more deals, and deals with lower rates.

Ultimately it will depend on your own personal situation as to which route would be best for you


HTH

MortgageMamma

What would you need to use the funds for later? home improvements or buying essentials?

Indispensable_Hobbes

i never thought about it BUT i'll need everything you need for a house.

Of course my mam has been putting away plates and cups etc but big furniture items will be required.

I would like to keep some of my savings for emergencies say 5k ??

herbiesjp

What are the actual figures you are looking? What is the purchase price? What is the total amount of deposit you have available (then we can say what the ideal figures should be)?
WHat is your income?
Do you have any other debts?


HTH

MortgageMamma

jenyking wrote:

i never thought about it BUT i'll need everything you need for a house.

Of course my mam has been putting away plates and cups etc but big furniture items will be required.

I would like to keep some of my savings for emergencies say 5k ??

Give me some figures and I'll let you know what I think. for example, how much savings do you have? Whats your income, your property purchase price, what other outstanding credit commitments do you have?

May I suggest, as a first time buyer, it would be a good idea for you to take advice from a professional mortgage adviser. Not only would you get the most appropriate mortgage for your circumstances, it would make you aware of what really is doable. The broker will help you draw up a budget for everything so that you are comfortable financially (assuming you stick with it!, some don't!)

MM

herbiesjp

What would you say you would be comfortable with as a monthly mortgage payment?

Indispensable_Hobbes

Dont worry all i will be seeing an ifa when the time is right, i havent found anywhere yet and work for a mortgage co thats where i saw the chappy BUT i was just interested to know other peoples thoughts.

My salary is just under 15k (after tax&travel pass i come out with 890ish)
Savings of under 8k atm however can add 10k on
I have no debt
I have monthly outgoings of.. my phonebill, travel pass (comes out of my wage - see above).
I will be moving in with someone but he is not going on the mortgage and therefore will pay half to me.

I have no idea how much water/electricity/gas/insurance/council tax etc cost therefore havent a clue what i would be comfortable with.

Oh to be so blind

toonfish

I have a friend who furnished his entire flat from freecycle - bed, fridge freezer, sofa & chairs, dining table etc - took him a while but he collected it all up while living at home and stored it in the parents garage.

Always better to put a deposit on the property where you can.

dai_griff

mortgage mama:

I have been trying to get in touch with you, could you please phone me asap.

Regards

Dave