Mortgage For A Young Couple !

Yashin

Hi there

Let me first say that this is my first post so if i have made this thread in the wrong area I'm sorry.

Me & my fiance went to see if we could get a mortgage from our bank and were told that because it was our first mortgage they were only willing to let us borrow up to £55,000 which we would need to pay back over 40 years.

So after reading through all of the paperwork we discovered that for every £1.00 we borrow we have to pay them back £2.60, my fiance is all for us taking on this mortgage and getting our own place together and so am i to a certain extent but i just feel this is a hell of a lot of money to be paying back and a hell of a long time for us to pay it back.

Also i don't know if it makes any difference but i am only 24 and my fiance is 21 and the bank we were offered the mortgage with was Bank Of Scotland

I would like therefore like any views or opinions you may have that might help swing our decision 1 way or the other.

Any help would be greatly appreciated.

roonaldo

The amount you repay per £1 is as if you keep the mortgage for the whole of the 40 years. As 40 years is a long time there is a more interest. What was the interest rate on that? You havent given much info.

Before someone can help you, we would need to know:

How much deposit do you have?
How much are both your incomes?
What outgoings do you have?
Do you want a repayment or interest only mortgage?
Do you want a fixed or discount rate? for how long?

CBR600F_2

How long have you and your fiance been together? Are you living together currently? If so, how long have you lived together?

The reason I ask these questions is I've noticed a lot of posts on here lately where people are stuck tied to a mortgage with a person they've separated from, their sole income is too small to remortgage, their ex-mate is being unco-operative, and they've found themselves in a big world of scat.

From the little you have divulged, it sounds like your incomes are quite small, that any mortgage you do manage to get hold of will be a fairly terrible deal, which further exacerbates the problem of what'll happen if the two of you break up.

I apologise if I'm somewhat of a Gloomy Gus, but I'm trying to be practical. You may look at this girl chopping wood, or changing a tyre, or MIG welding, with rivulets of sweat running down her sinewy, tattooed arms, and think, 'She's a keeper!' But what if the unthinkable happens?

lowlitmemory

I very much doubt that it is because it is a first mortgage, or because of your ages, that they are allowing you to borrow so little. My husband and I were 23 when we were approved for a mortgage and were allowed to borrow almost 5x our joint income on a 35-year term. I would imagine that they are lending you some multiple of your joint salary.

Like roonaldo has asked, what is your joint income? What is your deposit? What is your deposit as a percentage of the property you are hoping to buy (e.g. if you have £10k and hoping to buy a £100k house, you have a 10% deposit). These are the main things that affect your mortgage offer, not your age (unless under 18 obviously, or if you would reach retirement age before the end of the term). EDIT: also, do you have any credit-card debt? Other debt? Any defaults? These will also make it less likely that a bank will want to lend to you.

I would visit a broker in your situation, to help you find the best deal for your circumstances. Good luck!