90% mortgage - where to apply first??

Dave_Ham

squeeks wrote: »

You probably want to be factoring in housing price drops and interest rate increases in the short term. It would be high risk to rely on an increase in value over the next 2 years and for interest rates to stay this low in my opinion.

And that is why it is personal opinion, but better to give the OP as many considerations as possible.

It is impossible to do anything other than offer opinion on the forum, however hopefully it has given you food for thought...

All the best

motch

Dave_Ham wrote: »

Sorry, late on after you have already had some opinion. My thoughts are slightly different.

Firstly, you will absolutely sail through the Halifax at 90% (from the information provided) Subject to this being factual, I would almost personally guarantee this.

Post Office calculator is a bit misleading as it quite often throws up figures that do not transpire into offered amounts. Given your circumstances I would say you have a chance, but not necessarily a good one. If you were declined, this would not hamper your Halifax application unless you were applying for multiple unsecured credit at the same time.

I do not think it is a good call as a first time buyer to take on a 5 year fixed at 90% - personal opinion.

You could have loads going on within the next 5 years and therefore do you really want to be tied in for 5 years?

Factor in potential of paying mortgage down and increase in house value, you may get a better deal at the end of the 2 years..!

Do not use the Estate Agent broker - please..

I wish you well....

At least with the 5 year fixed there would be only 1 lot of fees/valuations rather than an extra 1 or 2 lots in that time span.

House prices going up? I suppose London/second homes/sought after areas possibly, general bread and butter houses can't see it myself. If they did go up, a £125k house is not going to sky rocket.

Here's another angle.. Keep living at home and save like a monk. I know you would like your own home that's understandable. But could you keep living at home? You could potentially save up a big deposit in a relatively short year or three. take home pay of £500+ per week, £300 per week potentially saved up?

Possible O/T at work? still have a few grand until higher 40% rate kicks in.

Lower LTV = less money paid out to banks.

FluffyClouds

Thanks everyone for your advice!! I feel a lot more confident that I would be likely to be approved by Halifax but think I will stay at home another 6 months......pay the loan off and then apply. This would also mean that I will have more spare money leftover each month so I would be a bit more resilient if interest rates shoot up after the fixed period ends too.

I am really very grateful for all your opinions.

Thank you.