First time buyers

Danni2012

Hi I wonder if anyone could advise. Me and my partner earn £55,000 a year between us and have a deposit of around £20,000 for a new home. Most of the houses we have seen so far will cost around £250,000 but we don't know if this will be stretching ourselves too far.

Ideally we would like the mortgage repayment to be around £850 a month but with our deposit the mortgages we have looked into all seem to come up higher than that.

We are struggling to understand all the ins and outs of a mortgage and where to start. Also do all mortgage lenders give you the opportunity to overpay each month if we wish and if we can afford to?

Any advice would be greatly appreciated!

DannyboyMidlands

I would have thought that on that salary you'd have a much larger deposit than £20k. If I were you I'd hold off buying for a couple of years and save some more. Or buy a cheaper house. That'll get you a better rate, the lower payments you desire and a buffer against falling prices/neg equity.

Does the £20k include for fees, stamp duty etc?

Different mortgages have different features. Overpayments are allowed if you have a mortgage that allows them. Some unlimited, some with conditions.

Alfrescodave

Can I ask why are you fixed on a monthly repayment of £850? With a combined salary of £55,000 that leaves you with a considerable amount of "disposable" income.

The £850 per month repayment with a £20,000 deposit doesn't equate to purchasing a £250,000 property

ViolaLass

Danni2012 wrote: »

Most of the houses we have seen so far will cost around £250,000 but we don't know if this will be stretching ourselves too far.

Look at cheaper houses.

Danni2012 wrote: »

Ideally we would like the mortgage repayment to be around £850 a month but with our deposit the mortgages we have looked into all seem to come up higher than that.

That's maths for you.

warwicktiger

Go Compare !

LoanCalculators

Overpaying is a good way to reduce your interest burdens. But need to check the terms and conditions. Different lenders have different terms for that.