Newbie Mortgage advice

noviceMS

Hi guys!

Apologies if these questions are naive, but I'm completely uneducated re mortgages etc and was wondering if anyone could offer advice please.

- What are your thoughts on house prices being likely to go up following the government's new Help to Buy schemes? ie is NOW a good time to buy because after January next year more people will be able to get mortgages and so there'll be more demand keeping house prices high/less willing to negotiate discounts?

- Is the Help to Buy scheme for new build properties already available to first time buyers? ie it's simply being extended to all people as from 1st April? Again, does this mean new build house prices are likely to go up/unlikely to be discounted as from next week?

- I'm getting a house with my fiancee, who works a regular employed job, whereas I work a mixture of self employed and PAYE work. Will a lender only take into account my self employment earnings and disregard my PAYE earnings? If so, will the lender look at the total amount earned through self employed work, or just look at the net profit?

- Finally, and this is probably a ridiculous question, does the mortgage repayment rate you get depend solely on the size of the deposit you can pay, or does the rate offered to you also depend on your level of earnings? ie will you be offered a better rate the higher your earnings are?

Thanks guys

Suarez

Any time is the right time to buy if you need a roof over your head.

kingstreet

I don't think prices will rise. Pent-up supply will eat up any increased demand.

HTB is replacing FirstBuy, but it will continue to be run by the HCA Homebuy Agents and the same builders. I don't see great changes to newbuild prices.

Some lenders take both sources of income. Gross salary and a portion of any gross variable earnings (50% or 60%) for the employed, plus net profit from self-employment if trading longer than two years with accounts or SA302s to evidence earnings.

Mortgage rates are dependent on loan to value, not earnings.

noviceMS

Thanks Kingstreet. That's good to know. Appreciate it.