I need a mortgage.

Littlebookworm

Good Morning
This is my very first post and I am not sure how it all works.
I would like to ask a question about what I need to know and do to obtain a mortgage.
I have seen a lovely house in the village and I will need some help with obtaining a mortgage any suggestions?
My salary is £25000--- would it be OK for me to buy a house for £150000.
I have no debt ,just a credit card ,which I pay off every month to avoid paying interest.
The newspapers are all talking about interest rates going up ,so I am worried about the future.
I am 36.
The estate agents told me that I could use their solicitor,which was kind.They told me that sometimes it is better to get a mortgage that stays the same.What do they mean?
This would be my first house ,I live with my parents.

maninthestreet

How much is the vendor asking for the house, and what is your annual income? This will give you an idea of whether you can actually afford to buy the house.

herbiesjp

Do you have any deposit to put down?

Littlebookworm

£150000 and I have £4000 saved

maninthestreet

If you have no deposit, you would need a mortgage 6 times your salary - this would mean a monthly payment for a 25 year repayment mortgage at 5.5% interest p.a of £921; at 6% p.a the payment rises to £966/month.

Littlebookworm

maninthestreet wrote: »

If you have no deposit, you would need a mortgage 6 times your salary - this would mean a monthly payment for a 25 year repayment mortgage at 5.5% interest p.a of £921; at 6% p.a the payment rises to £966/month.

How do I find out about your mortgage?

silvercar

Your 36 with a good job and live at home, yet have only £4,000 in savings. This mortgage would mean a big commitment. You need to budget for the monthly outgoings. Having not paid rent and bills presumably upto now, are you sure you can afford such a big mortgage?

herbiesjp

The problem you will have is that you are already looking to borrow 6 times your income, whilst having a minimal deposit

I would suggest saving a little or maybe seeing if you can increase your deposit - would that be an option?

geralddlp

The Agent is suggesting that you might want to get a fixed rate, (a mortgage that doesn't change), that way if interest rates go up, your repayments will stay the same. Normally there is a premium for this kind of mortgage, for example you can probably get a discount deal for a few years at around 5%
a fixed rate might cost .5% more. both would be for a short period of time, ie a few years.

There are numerous sites showing comparisons and best buys, I don't want to plug any in particular. The sunday papers usually print best buy tables too.

The multiple you need (almost 6 times your salary), might make it difficult to get some of the better deals. It might be worth talking to an Adviser who can suggest actual deals,

Whatever you decide, good luck and I hope you get and enjoy your new home,

Cheers Gerald

Littlebookworm

herbiesjp wrote: »

The problem you will have is that you are already looking to borrow 6 times your income, whilst having a minimal deposit

I would suggest saving a little or maybe seeing if you can increase your deposit - would that be an option?

My parents would help if I asked,how much would I need?

Melissa177

If you are living at home, you should be able to save more rapidly.

Do you pay rent at home at the moment? Maybe you could put away an amount each month, X, where X is prospective mortgage payments and bills (say, 1000), minus your current rent you pay to your parents.

If you don't pay any rent, try putting away 1000 a month on your salary - I suspect that you might find this a bit difficult to be honest, however.

Alternatively, could you find a property for less than 150K? Maybe 100-120K?