First time buyer seeking advice

daydreamer22

Hello all
Been a fan of MSE for a while but never posted on the forum

After renting for many years we've decieded now might be the time to buy and I'm looking for advice on mortgages, find our own or use an adviser? Keen to try and find our own but so many options. If we do can anyone suggest what %APR we should be hoping to get based on the info below.
Also any advice on tracker / fixed given the current economic climate?
Any advice very much appreciated

Thanks

2 person mortgage, both salaries of £45k
House price £275k
Deposit £50k
Other commitments in terms of loan repayments £610 per month (combined)
Any other info that is useful just let me know

Thanks again

Conrad

'Both salaries of £45k', is that each?

Eceryone would opt for fixed when rates are at an all time low but in the end many folk still choose variable rates as they tend to be cheaper. It's simple personal choice, NO ONE knows the future as the Bank Of England Govenor often points out (brokers pretend to know so as to impress folk!).

daydreamer22

Hi Conrad
Yes £45k each

I guess fixed vs variable is the million dollar question?

That aside any advice on best mortgage lenders to approach or what APR / fees etc rates we should be aiming for?

Thanks in anticipation for any advice any of you might be able to provide

Thrugelmir

daydreamer22 wrote: »

That aside any advice on best mortgage lenders to approach or what APR / fees etc rates we should be aiming for?

That's determined primarily by the deposit you have. The larger the better.

How much unsecured debt do you owe?

beecher2

You'd want to try to keep the purchase under £250k because of stamp duty tiers. This would also lower your LTV to 80%

daydreamer22

Husband keen to keep us under £250k but house we love is offers over £280k, think we can get it for £275k but of course thats well over the stamp duty 1% limit.... guess we have to take the hit?
Deposit will be £50k (or possibly as much as £60k) any advice for us on what to chek out mortgage wise?

daydreamer22

Sorry forgot to say only loans we have are students loans at combined total of £320 and car loan also about £300 so approx £620 in total between us both

Dave_Ham

This appears fine.

Would suggest you budget at 5% rate being achieved, although if you have 20% deposit fixed in your mind.

At 20% the rates artificially drop further than at 85% and whilst you can probably achieve a rate of circa 4%, budget at 5% as the prudent way round.

I would extend the term right out also, as with student loans assume you are relatively young and therefore feel your way onto the housing market. You can always overpay..

Just remember you pay the Stamp Duty upfront so 2% difference is 2% difference, upfront.

All the best