What Mortgage is right for me? (FTB)

Kelvin.uk

Hi,

First time buyer here and would like some friendly advice on what sort of mortgage is right for me. I can afford to pay up to £900 a month off my mortgage, and still live comfortably.

Here are my figures:
Offer: 175k
Deposit: 43k
Fees: 3k
Salary: 30k (single income)

I've been shopping around and I'm thinking something like a fixed mortgage for at least 3 years, 20-25 year mortgage with an interest rate of 4% seems like a good deal to me. What are your thoughts? What do you think a better mortgage might be for me?


Thank you!

bigadaj

Generally look ok, fees potentially look a little low.

Main problem might be that if you want to overpay on your mortgage then a fixed product might incur penalties, a tracker might be better for you, If you can put an extra couple of grand in then you get below 75% ltv and get some of the nest rates available.

Hsbc and first direct, so the same company really, have some of the lowest rates currently, but they are picky so if you are clean in credit terms they might be worth a look.

Gary123456790

Hi,

Your income multiple with the given figures is quite high - I make it 4.4. I.e. what you want as a mortgage (offer minus deposit) divided by salary.

If you are unsure, its probably best to see a broker. Its a decision that will affect the rest of your life!

Gary.

GMS

Look at longer term fixes too for comparison. May be able to get a 5 year fix for little more than a 3 year rate. Payments should be affordable based on what you say and may also allow for an element of overpaying which will reduce the term.

Have a chat with a broker and get an idea of options. At 4 x income you may find HSBC unwilling to lend.

Kelvin.uk

Thanks for all your feedback.

It is a little ambitious of me

beachie

Saying that HSBC are one of the higher lenders. They offered me an agreement in princicple for £135k on a £28k salary.

I kmow this doesn't mean much but some people must be getting this amount so if your credit rating is squeaky clean you might be lucky.

I am looking at buying a larger property and renting a room out.

littlemrtinkle

bigadaj wrote: »

generally look ok, fees potentially look a little low.

Main problem might be that if you want to overpay on your mortgage then a fixed product might incur penalties, a tracker might be better for you, if you can put an extra couple of grand in then you get below 75% ltv and get some of the nest rates available.

Hsbc and first direct, so the same company really, have some of the lowest rates currently, but they are picky so if you are clean in credit terms they might be worth a look.

just change the term to get around being limited on overpayments - most lenders let you