Need help with First-time mortgage???

Cheap-as-chips_3

Ok, so I need some advice being a first-timer. I've found a flat, now need a mortgage. Flat costs £125,000, I have £25,000 saved for a deposit, and I have an income of £23,000 (which'll raise to £26k next month, but for now I'm on £23k)!

So, now I need a mortgage of £100,000, any idea's on my options or best lenders. Ideally I'm looking for a 25year mortgage, poss fixed or tracker! Who has the best rates around, and where should I be looking?

Thanks

MortgageMamma

Lots of lenders will consider this. Are you in permanent employment? what is your credit rating like?

Whilst in theory I like the idea of a 25 year fixed I would warn you to think carefully before commiting to one - I know the bank or building society will say its fully portable but you have to fit criteria in terms of earnings, credit status, property type and loan to value in order to port it. You also need to consider the early repayment charges should you need to sell the property...

Will you be taking professional advice?

Cheap-as-chips_3

MortgageMamma wrote: »

Lots of lenders will consider this. Are you in permanent employment? what is your credit rating like?

Whilst in theory I like the idea of a 25 year fixed I would warn you to think carefully before commiting to one - I know the bank or building society will say its fully portable but you have to fit criteria in terms of earnings, credit status, property type and loan to value in order to port it. You also need to consider the early repayment charges should you need to sell the property...

Will you be taking professional advice?

Yes, I'm in full-time employment and have no debts, nor have I ever had any. I don't know what my credit rating is like, as I've never checked, which probably leads to the fact I'm yet to seek professional advice!

Due to deposit, my LTV is 80%.

I'm not totally committed to the idea of a 25year mortgage, I've read other advice from Which? that suggests otherwise, and look for a 2-5year mortgage. Though, I like the idea of a fixed rate through the duration of my mortgage.

herbiesjp

Your mortgage scenario appears straight forward.

I think you need to have a chat with a professional, as you say, and discuss exactly what you are looking for

Not sure on what Which may have written, but I get the feeling you may not have understood the article correctly, as you would not set up a mortgage for 2-5 years - you may set up the interest rate to be fixed or tracker for 2-5 years though

Also having a 25 year mortgage is a long commitment, especially if you may sell up during that time.

Lots of points you should consider before commiting to anything

HTH

MortgageMamma

Are you aware what a capped rate mortgage is? I think you should look into the possibility of one of those too