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Would we get a 90% mortgage?
B.Inky
Posts: 47 Forumite
Hi,
Wonder if I could get some advice, this is all quite new to us!
We've been saving for a deposit for around 4-5 months. A few weeks ago a property we'd always liked came on the market and my dad offered to give us a 10% deposit. We decided against that particular property, but the offer of a depost is still there (they will adjust their will to reflect it).
We have now found two properties we like and are thinking about them. I phoned up Natwest, who I bank with and they said in theory they would give us a loan of (approx) £220,000. The properties in question are £202,000 and £234,000, so affordable with the deposit. However, they said that they wouldn't do credit checks and decide for sure whether we would be accepted for a mortgage until we had had an offer accepted by the vendor.
We have a joint income of £53,000 and having just checked, very good credit record (no late payments etc.). I was just reading a thread on here though that said that quite a lot of 90% mortgage applications are turned down, so I was wondering if this is likely in our case, and what to do if it is. It seems a bit risky to put in an offer without knowing if we'd get a mortgage, should we be approaching other lenders/brokers before we put in the offer? The Natwest rate is the lowest I have found so far. Not quite sure what to do! Also - when do you get a solicitor, is that after you've found a house or before? Is there anything else we should be doing now, while we're still house-hunting? This is all quite confusing!
Thanks, sorry if I sound a bit naive
Wonder if I could get some advice, this is all quite new to us!
We've been saving for a deposit for around 4-5 months. A few weeks ago a property we'd always liked came on the market and my dad offered to give us a 10% deposit. We decided against that particular property, but the offer of a depost is still there (they will adjust their will to reflect it).
We have now found two properties we like and are thinking about them. I phoned up Natwest, who I bank with and they said in theory they would give us a loan of (approx) £220,000. The properties in question are £202,000 and £234,000, so affordable with the deposit. However, they said that they wouldn't do credit checks and decide for sure whether we would be accepted for a mortgage until we had had an offer accepted by the vendor.
We have a joint income of £53,000 and having just checked, very good credit record (no late payments etc.). I was just reading a thread on here though that said that quite a lot of 90% mortgage applications are turned down, so I was wondering if this is likely in our case, and what to do if it is. It seems a bit risky to put in an offer without knowing if we'd get a mortgage, should we be approaching other lenders/brokers before we put in the offer? The Natwest rate is the lowest I have found so far. Not quite sure what to do! Also - when do you get a solicitor, is that after you've found a house or before? Is there anything else we should be doing now, while we're still house-hunting? This is all quite confusing!
Thanks, sorry if I sound a bit naive
0
Comments
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council of mortgage lenders have information on average mortgage lending. In january 2012 first-time buyers have borrowed on average 80% of their property and the typical home mover borrowed 70%. With the average income multiple being circa three depending on your circumstances. This would suggest you should be able to borrow around £150,000 and require a deposit of around £50,000. So these are the averages so you may achieve something better0
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