First time buyer help

Lynzie_2

Hiya,

I am looking for some help and guidance please.

My partner earns 27,500 a year and I earn £6500 a year, we were told a while ago we could get a mortgage up to 170,000, we have a deposit of £20,000

We have found a property we liked, and have offered, they accpeted our final offer of 170k.

However when looking on comparrison sites last night and this morning I have found we can only borrow up to 120k, how likely is ths to be true? and would a mortage broker do something different to allow us to borrow more?

we have a loan of £130 per month for a car, which has another 3 years to run, we have one child.

Also what happens after your offer has been accpeted? as the estate agents hasnt said to us what happens now etc.....

Any help or advice would be fab

Thanks

Jimbo1976

A broker will have a better idea of how much you can borrow but borrowing 5 times your joint salaries is pretty challenging especially when you have a car loan.

Lending criteria was much more relaxed 3-4 years ago so maybe that's when you were given the £170,000 figure.

Speak to a broker asap and they will give you a more accurate figure and once you know you can ring up the estate agent and withdraw your offer. People withdraw offers all the time, its part and parcel of an estate agents life

Dave_Ham

I would suggest you get in contact with a broker quickly and please do not see the in house mortgage advisor from the Estate Agents - have a look on here and not a nice read..

The EA will now be on you constantly about the Agreement In Principle (AIP) and then the valuation.

When the offer is accepted, they want an AIP. When they get the AIP they want solicitors details and a date for the valuation. This can only be instructed once the application has been accepted and the valuation fee paid.

Once the valuation comes back, other things being equal the mortgage will be offered and off to the solicitor of choice to confirm the legal components of the sale.

Only is everything legally binding when contracts have been exchanged and anyone can pull out without cost at any point up to this and they do...

Your income is just about enough to get to the mortgage figure needed, you will need a broker though.

Lynzie_2

We are seeing a couple of brokers this afternoon when my daughter wakes up from her sleep.

Is there anything that would stop us from getting a mortgage of that amount?

we had that qoute about 8 months ago, where he said we could get up to 170k, we wont be able to make our deposit of 20k any larger

Thanks for your advice too

Dave_Ham

The biggest determining factor will be if the broker you see has access to the entire market, or is independent.

The next will be how experienced they are and whether they have the appetite to take the case on and be realistic.

Clarify any fees upfront and if and when the recommend a product and lender, always ask why that one..

This will be very tight...

Good luck

Dave_Ham

Am not being deliberately patronising, but I have assumed above you know and understand the difference between a broker and an advisor in branch...?

The advisors in branch/Estate Agency will tell you what you want to hear initially and then potentially may not deliver...

Sorry, forgot to say originally...

Lynzie_2

We have just called an independent mortgage advisor, not associated witrh an estage agents and they said we can have the loan of 150k with a deposit of 20k, and the best rate he can get us is 5.1

We have another independent guy coming round our house tonight to show us figures and go through things with us.

we did speak to an estage agents advisor and they wanted us to get of a deposit, but i dont think that is it all possible.

They have all said we can get that amount, but i want proof, if you know what I mean, is there a way of getting proof?

Thanks for all your help so far

Dave_Ham

Not sure I understand the question correctly, they want proof of your income I assume - typically with payslips?

harvey115

The brokers would be giving you an idea of what they think they can get you in terms of amount to borrow and the interest rate. To see a proof you would expect and AIP/DIP from the lender that shows the details you are after.

Just make sure that you do not end up with someone of a talker and end up paying non refundable fee without much of an experience. Go with someone you think is an honest and straight forward to talk to after all you are a client. Make sure you feel comfortable with the person as you are trusting them with your application.

Best of luck