Advice please

mrs_motivated

I have been renting for the past 8 months (rent £900) per month, after separating from my husband. The marital home has sold, marital debts cleared, solicitor paid etc. which has left me with approx £70k.

I am now looking to get back in the property market, and a little daunted about going it alone. I have two questions but any further advice would be greatly appreciated

What is the advantage of using a broker rather than just approaching a lender?

Also, I want to purchase a property around £200k, but only want to use £45k to £50 k deposit (basically to keep some back for inevitable improvements and also to help my daughter with uni costs.

I earn £52k , am 46 years old and would like to take a repayment mortgage over 22 years and would prefer a fixed rate for the first few years. What are my chances if getting this?

mrs_motivated

Bump...... I know I should be fine with the amount I want to borrow. It's the repayment length I am concerned about as I would be almost 69 when it ends. I hope to overpay, once daughters uni is finished, but of course the building society only has my word for that. I do however have a goo pension that pays a lump sum on retirement. Would they consider that?

Thrugelmir

mrs_motivated wrote: »

What is the advantage of using a broker rather than just approaching a lender?

Do you need help and guidance in finding the right product?

The lower the LTV the better the rate of interest. HSBC for example deal direct not through brokers.

Personally I would opt for a repayment mortgage over the shortest term you can afford. There's no guarantee of earning your current income until the age you suggest.

robatwork

Some lenders won't let you go beyond 65 - and it's actually worse than that. They build in some time, usually 6 or 9 months, of leeway to allow the mortgage to be arranged.

You should plan for a mortgage period of say 18 years (depending on when your birthday is) - if you are just 46 you could go for 18 years and 3 years for example. I would stick your figures into the mortgage calculators on the biggies - HSBC, FD, Britannia, Coop. You will probably end up with monthly payments of around £900.

I think your case is quite straightforward and you don't need a broker, but if you're happier with getting advice then it's worth paying a fee to get a decent one.

bigadaj

Also remember that mortgage rates arent going to be 0.5% base for the next 18 years so factor that into affordability.