FTB with questions!

Luisa1981

Hello!

I have some questions. I am a FTB with a deposit of £19.5k. I earn £28k. I have no debts, I pay off my cards in full every month and have no loans or anything. I'm looking for a fixed-rate mortgage initially and at properties of around £145k.

I've seen some decent deals with Lloyds TSB (calculator says £125k) and Yorkshire Building Society (calculator says £126k) that I need to compare, but both look good. I can afford around £850 for repayments a month. My parents have agreed to lend me any excess money for fees etc etc so my deposit is my deposit.

I have two questions:

1) What is the likelihood of a broker getting me a better deal?
2) I'm on Probation in my job until February. Am I likely to get a mortgage or should I just hang on, save more and wait until then?
3) Are there any decent FTB mortgage lenders I have missed?
4) What's the best term for a mortgage? Will I get a better offer if I extend it to past 25 years?

I don't want to go down the Shared Ownership route as I keep thinking it's a con...

I keep wanting to speak to someone to help me with the confusion! But I thought I'd ask here first.

Thanks in advance,

kingstreet

Two questions? Really?

1. You haven't given us any details of the offers you are considering, only the lenders' names.

2. Some lenders will lend, some won't. The best deal will probably come from waiting.

3. There are no lenders best for any particular consumer group. You look for the deal you want at the time you need it.

4. The rate is not affected by the term. A shorter term means higher contractual payments. Some prefer the discipline of this. Others think you should go for a longer term and have contractual payments which are lower and you can then overpay voluntarily to reduce the term.

Ask any questions you like. It's a damn sight easier than five paragraphs of verbiage we get most days.

GMS

Borrowing 125.5k on a 28k salary is 4.5 times salary. Not all lenders will stretch this far.

Aim to get a slightly higher deposit or cheaper property to make your deposit 15%. This will open up better rates than a 90% mortgage.

Probation will be ok with some lenders but not all.

Longer term meand lower monthly payments but more paid overall. A personal choice coupled with affordability.

May be worth a chat with a broker to see how to proceed

Luisa1981

Sorry to bump but I wanted to say thank you!

Have taken your advice on board and decided to wait until I am off probation (end of Feb). I am saving on average around £250 a month so will easily have that 15% deposit by then! (crossing fingers).

Thanks!

Hominu

Since you are saving for a deposit, are you taking advantage of the instant access offers from the various banks as they come? I know its not a huge deal in the end, but as a large well known company always says, every little helps

For example, ISAs to protect your savings from tax, the instant access regular savings accounts (paying upto 6%) and the 4% current accounts that have come and gone recently, etc.