ftb advice please

base2001

hi all,

i must apologise as i dont know alot about mortgages, but i'm 25 wanting to buy my first home, i'm on £18500 a year, about £7000 debt and wanting to hopefully borrow to pay debt off as well, so gives me fresh start and one major payment to pay out..

i know some people on here will say save up pay off debt first, but try living with my sister and you will understand (trust me).

No deposit :embarasse so looking for 100% mortgage!!

so does any body know my chances and what amount i would likely get?

oh and another thing sorry, if i was to put in and try for a buy to let mortgage would i get more as i would also have second income towards repayments, could get my friend to move in as well...... could be fraud but who knows

thanks

MortgageMamma

HI Base

Well, based purely on what you tell me here, it could be possible for you to obtain a 125% mortgage

How do these work?

You take a 95% mortgage i.e, secured loan, and the further 30% or less if you prefer is an unsecured loan over the same term as the mortgage. 5% of the unsecured loan pays the deposit on the mortgage, and you could use the rest, if you needed to to consolidate the loan you have and make things cheaper (beware you would pay more interest in the long term)

There are quite a few lenders doing these loans now, and in some cases they are a lifetime to FTBS who would otherwise not get on the property ladder. Northern Rock, Coventry BS and BM solutions are all popular providers

This is a big commitment howeverm and the competitiveness of these deals varies from one provider to another so I would suggest you ask a whole of market mortgage broker to assist you in working out the best option

base2001

thanks mortgage mamma, i will try and arrange to see a mortgage adviser tomo, but what do you think the chances are, of me getting a mortgage for £90000 as houses have have seen are about £80000, and i would have some one sharing with me so bills wont be as much

thanks

MortgageMamma

Depends on a number of factors really

are you employed or self employed
do you have credit commitments, eg cards as well?
Whats your credit rating like, have you missed payments or ccj/defaults?

You are not looking to borrow over the odds, so thats a good thing

herbiesjp

How much is that £7k debt costing you each month? Is that just a loan or does it include credit cards?

As MM rightly says there will be options available to do this, but it will depend on your credit score with the lender you decide to go with.

Just be careful and look closely at all the figures as with 100%+ mortgages you really do need to go in with your eyes open

Make sure you are comfortable with the monthly costs and affordability

Please note that 100% lenders are very tight with their underwriting so if yu have had credit problems in the past like missed payments, can cause problems.

HTH

base2001

thanks for help :beer:

well i'm hopefully wanting to clear all debts with money on top of mortgage as £7000 is all i have, with a loan and credit card.

i'm employed for 2 years and i have one default, down to some one esle but was in my name :mad:

herbiesjp

How long ago was the default? And for how much?

base2001

about 14 months ago for £244

herbiesjp

HAve you cleared it/satisfied it?

base2001

yeah, cleared and satisfied........

herbiesjp

As stated previously most 100%+ lenders will have very tight lending criteria and even the small default you have will make most lenders think twice about your application.

There may be one or two options available but I owuld suggest discussing your whole scenario through with a fee free whole of market adviser (armed with your credit file) and let them make some calls to see which lenders may be flexible enough to agree the mortgage for you