Clueless First time buyer?!?!

chevron84

Hi all.

Looking for a little advice. I would like to get my foot on the property ladder and have found a property selling for £25000. I have £2500 deposit and wondered, well a couple of things really,

a) what type of morgage is best?
b) Is it better to take it out over less time and pay higher repayments? (my salary is £25942 and i am currently paying £450 rent so could afford that and probably more-i have no credit cards, loan repayments)
c) Would it be better to take out a loan for £25000 instead?

Any advice on any of the above would be most appreciated. Thank you in advance!!

ACG

The only loans i know of would be about 10% interest rate if not more.
Mortgage wise im not sure if you could get a 90% £22,500 mortgage.

Im not saying it cant be done and what i have posted above is only what i know of... I have never had to look into it so im sure those can be improved upon but i dont think this will be the easiest mortgage/loan to place.

Id actually be intrigued to see other advisors opinions on this.

On a side note, what type of proerty is it? £25k seems very cheap. Is it a property above a shop or a high rise flat or....?

chevron84

Its a 2bed mid terrace. I live in the south lakes, Barrow in Furness, there is quite a few properties around here that are that cheap at the moment-they aren't in the greatest of areas and need a bit of work but my partner is a builder and we actually already live around the corner from it-so we know the area is not as bad as others perceive. We figure at this price to jump on them and even if we have for a few years the property prices could go up and we could be set to make a profit.

I looked on this website and did a search and it came back with 4.49% initial interest rate, fixed term until 2015 then up to 5% with the payments set at £140 a month, thats £25000 mortgage with £2500 deposit over 20yrs? Is that a good deal? This is so confusing!!

Thanks-any advice really is much appreciated-i have no idea about any of this!!

kingstreet

You'll fall below the minimum valuation and minimum loan for many of the credit scoring lenders on the High Street.

Why not talk to a local building society, like the Cumberland or Furness, the latter lends down to just £20k.

Let_Us_See

Furness B S a good place to start, whilst on the High Street Abbey/Santander have a £6000 minimum loan criteria.