1 Bed Flat - First Time Buyer

LavenderBoy

Hey

Just asking on behalf of a work friend after having a long discussion at work today.....

Basically my friend is 20, She currently privately rents.

She has scrimped and saved for months and now has saved up around £4000, She has been looking to get on the property ladder and is looking at flats around £65-75K, She has done the usual comparisons with mortages on the standard websites and I was just wondering what are her chances of getting accepted.

She mentioned to me about 'Newcastle BS Direct' Mortgages where her repayment was aroun £370 over 30 Years and this would be solely on her own wage of around 19K per annum.

So her deposit would be roughly around 5%.

She told me her credit score isnt amazing nor is it bad either . Just because of her age she does not really have much of a credit score but mentioned to me that she could get something called a Guarantor ? (Father for example) to strengthen her application.

She currently pays a lot more on rent and would easily be able to manage payments etc on the flat.

Just would like to know if with the above details it would be likely her being accepted for a mortgage ?

I thought it would be quite easy for her to get one, but I am no mortage expert !

So any advice would be great so I can pass onto her , Would love to help her and see her get settled in somewhere nice :j

R_P_W

I'm no expert either BUT from what others have posted on other threads I think you have to walk on water in terms of credit history to get a 90% LTV and dont think you would get a 95% one.

Your friend needs to keep saving in my opinion aiming for minumum 10% deposit + the various fees and then obviously the costs of moving/furnishing etc.

Buying a property is a lot more than the monthly payment.

opinions4u

One bed flat = difficult to sell = probably better to price up a 2 bed terrace.

As above, a patchy credit history is likely to need a bigger deposit.

76rosie

LavenderBoy wrote: »

Hey

Just asking on behalf of a work friend after having a long discussion at work today.....

Basically my friend is 20, She currently privately rents.

She has scrimped and saved for months and now has saved up around £4000, She has been looking to get on the property ladder and is looking at flats around £65-75K, She has done the usual comparisons with mortages on the standard websites and I was just wondering what are her chances of getting accepted.

She mentioned to me about 'Newcastle BS Direct' Mortgages where her repayment was aroun £370 over 30 Years and this would be solely on her own wage of around 19K per annum.

So her deposit would be roughly around 5%.

She told me her credit score isnt amazing nor is it bad either . Just because of her age she does not really have much of a credit score but mentioned to me that she could get something called a Guarantor ? (Father for example) to strengthen her application.

She currently pays a lot more on rent and would easily be able to manage payments etc on the flat.

Just would like to know if with the above details it would be likely her being accepted for a mortgage ?

I thought it would be quite easy for her to get one, but I am no mortage expert !

So any advice would be great so I can pass onto her , Would love to help her and see her get settled in somewhere nice :j

i am in the middle of buying a flat, waiting to dot the i's and cross the t's.

i have an 11, 000 deposit and the mortgage is for 79,000. This is on my income of 20k. The halifax told me if i'd had 13.5k, i would have a better rate. plus it wasn't easy finding this place for 90k.

plus there are the charges for solicitors, plus there was a fee for the survey.

plus there will be bills for leasehold, plus life insurance, council tax etc.

my mortgage is payment for the 1st month is higher than the usual payments.

what if there are any other things like boilers etc.

in my experience, your friend needs to save more. if they want to move that much, they will economise greatly. I do not know where your friend lives right now but my OH and i have been living in one room to save. in the end you will have to be cruel to be kind.

when i went to the broker in the estate agent, they said they couldn't beat my deal. things have changed. A little suffering now will pay dividends later.

HTH