New to Mortgages

Amy-louise_2

I appreciate that this may be a really simple question so apologies in advance.

Me and my partner both earn 25k a year and will next year be applying for our first mortgage. At this point we will have saved between 25 and 35k for a deposit.

My questions are does anybody realistically know how mych we'll be offered as I am getting dramatically different quotes from a number of different websites.

Also, if (for example) we are offered 200k, does this mean we have to find a house for 200k and thats it? Or does it mean we borrow 200k then use our deposit of 25 - 35k on top of this meaning we can buy a house for upto 235k? I wasnt sure whether the deposit acted as part of the loan amount.

I am also extremely interested in the Nationwide Save to Buy scheme but have not heard much feedback on this and would be interested to know peoples thoughts. The scheme would be ideal for us as it offers 1k cash back once the mortgage completes which would be great for us but their mortgage rates seem very high and their website is quoting monthly mortgage payments of £1400 - Does this seem right?

Any comments would help, I am trying to swot up as much as possible in the next 12 months so that we can be savvy when it comes to buying.

Thank you

Amy-Louise

Wh05apk

With a joint income of about £50k (all basic?) with no other commitments/children/credit issues, and assuming you are young enough for a 25 year term, you should be able to get a mortgage of between £200-£250k, with your deposit on top.

As you will be 85-90% LTV everything will need to be spot on, so ensure you are both on the voters role, if you have credit cards, ensure you use them and repay without delay, this will help improve/ruin your score quicker than anything.

Amy-louise_2

Yes this is our basic income we do both get bonuses as well, to be honnest it is likely to increase in the next 6 months to around 60k (joint) but I am not going to hang my hat on that at the moment.

On top of this we do not have any children and although I have credit card debt of around 4800 this will be cleared by August next year (a few months before we start looking for a house) and I have not had a late payment since around 2007 according to my credit report.

We will be 25 and 26 at the time of buying so will get a 25 year mortgage. Thanks for replying, as I say I am trying to gather as many thoughts as possible

Thrugelmir

Amy-louise wrote: »

I am also extremely interested in the Nationwide Save to Buy scheme but have not heard much feedback on this and would be interested to know peoples thoughts. The scheme would be ideal for us as it offers 1k cash back once the mortgage completes which would be great for us but their mortgage rates seem very high and their website is quoting monthly mortgage payments of £1400 - Does this seem right?

If you intend using NW for a mortgage then there's nothing negative. The NW start to build a picture of you which aids your mortgage application. You receive a bonus.

Mortgage rate depends on the LTV. So the amount quoted may be at the top end of rates as an illustration.