First time buyer; just after a bit of advice?

Rummy_2

Hi all,

I'm looking to buy somewhere quite soon, and I'm new to the world of mortgages etc and somewhat confused(read the mortgage guide offered by MSE, as well as one offered by Nationwide).

Basically, I currently work variably; I've been in the job almost 2 years but I'm paid by the hour/what I work and that varies; I'd say I average a take-home of about £1000 a month maybe.

I'm lucky to be able to borrow quite a bit from my parents rather than the bank, plus my own savings, so only really thinking to borrow 20-40 grand from the bank really; and intend to pay it off as fast as I can; then repay my parents.

What however would be the best sort of mortgage for me? Or first step to take? Should I see an advisor/broker? I'm keen to pay the bank back as fast as possible so the interest doesn't rack up, but also want a good deal etc. Everything I find seems to suggest being put in to fixed terms/repayments with little option for overpayment etc without charges? As said, my income's variable month by month(fairly stable average though), so flexibility would be good; or maybe £600 a month repayments - but is there option for overpayment etc?


My other issue is a credit rating; afaik I don't have a bad one, but I had avoided credit all my life! I got my first credit card maybe in September(for purpose of building up a credit rating), and pay it off in full each month etc. Does the amount I spend/repay affect the rating, or just the fact I pay each month? Given I'm not taking a huge mortgage I'm hoping it won't be an issue; but with the variability of my job I don't know if the two might compound against me.

(also, what's the best way to find a good local/facetoface broker/advisor? ideally fee free? the links in the mortgage article?)

Rummy_2

Hi, thanks for the reply.

I've got about 60-70 of my 'own', so say £65k accounting for need with fees etc regarding the buy. I will be borrowing about £70k combined from my parents.

Price range I'm still considering, probably £120-£160, really. £170 at a push, but I don't want to take too much from the bank as indeed, I will need to repay my parents. Not necessarily from day one at the moment, though(still sorting out the exact terms etc).

I haven't considered yet how the lender might look at that loan(I didn't think that might even be a thing), I'm new to the world of mortgages and at the moment still somewhat confused!

kingstreet

If borrowing from your parents, lender will have issues with;-

- affordability if you will make regular repayments
- any charge taken over the property to secure it
- any interest they have in the property.

Make sure you get advice on choosing the right lender. This may not become an issue until the later legal stages after you've got an offer and spent money on fees.