FTB - found a flat, now for the mortgage!

bodmil

The_J wrote: »

My advice:

1) You plan to overpay but you're being a !!!!! and taking a 30 year term. C'mon son.
2) Property is probably ok. Sometimes more than 4 floors without a lift is a problem. Always subject to valuation.

Not sure what the issue with your first point is?

The_J

Longer term = reduced monthly payment = more interest paid

What's the point if you can afford more?

bodmil

Flexibility if I'd rather buy a handbag one month and over pay the next? I can afford a far shorter term, but as I say, I'd rather do it on my terms around bonuses/rent coming in from a lodger. I'm young enough to stretch it out so it seems worthwhile doing.

I appreciate the post, I want to make sure I've covered all of the bases, by my research overpaying instead of a bigger repayment should work in my favour to attack the balance quicker, so interest 'should' be smaller this way.

The_J

Whoa, don't mention the lodger. Betmunch will call the police.

edit: I didn't realise you were a girl, apologies I know that handbags are important, you could take it over 35 years if you want.

bodmil

It was mentioned in the first post, good thing he missed it!

The_J

Most lenders are fine with it. They won't take the income into consideration but they won't restrict you from doing it.

Next step is to get the offer accepted, a survey can be done as part of the mortgage and your solicitor choice may be made redundant depending on who you apply to.

bodmil

I don't expect any problems with it but yes as I say, the income will be a bonus so doesn't affect my affordability.

Well I'm not keen to make an offer without having a survey done, isn't this the usual order? Or do you mean the valuation as part of the mortgage?

The_J

Are you buying in England or Scotland?

Thrugelmir

The_J wrote: »

Nah betmunch, if the mother says it is a gift it's fine. Even if the intention is to repay it. The lender definitely won't care as long as it is stipulated as "a gift and non-repayable", their only concern is a legal possibility of the mother arguing a stake in the property on repossession.

I sincerely hope that you don't give your clients the same advice. Certainly wouldn't advise ever putting this advice in writing.

There's no concern by the way in this circumstance. Though you are correct that there could be issues. Hence why the matter needs to be properly documented.

bodmil

Thanks all, the flat is in England.

Sound I disclose my full situation then? I can provide a copy of my bond certificate and a letter from my Mum stating her position and no intention to claim ownership or be involved with the flat.