Mortgage with Barrat Homes, PLEASE HELP!

kinh

Hi there, so I am going to view a barrat homes development tommorrow, and they have an offer on at the moment where you can reserve a home for £1 which I am going to do.

The lady I spoke to on the phone said I can either go to a bank and get a mortgage agreed in principal, or do a credit check with them!

My question is, it's all short notice, Shall I do a credit check for a mortgage with them, or try get a mortgage agreed in principal with a bank/building society?

Will their rates be reasonable, what questions will ask on the credit application? Will I know straight away? Likelyhood of acceptance? No missed/late payments/ccjs/defaults Credit usage at 20%

Who do barratt do their searches with?

This is for a brand new house for £150,000 with the new 5% government scheme that I will be taking up. Thanks

~Beanie~

Barratt Homes won't be giving you the mortgage, they will be arranging for you to see one of their mortgage advisers. You will be asked the same questions as you would if you were going direct to a bank/building society, you won't know straight away and nobody can tell whether you are likely to be accepted or not without more information.

Personally I would always arrange my own mortgage and never use the builder/developers mortgage adviser.

kinh

~Beanie~ wrote: »

Barratt Homes won't be giving you the mortgage, they will be arranging for you to see one of their mortgage advisers. You will be asked the same questions as you would if you were going direct to a bank/building society, you won't know straight away and nobody can tell whether you are likely to be accepted or not without more information.

Personally I would always arrange my own mortgage and never use the builder/developers mortgage adviser.

Hmm, you say you wouldn't use a developers mortgage adviser, would it be different if they can sort you out a good deal?

The good thing is I can reserve the home for £1 instead of £500 so I won't really lose anything if I don't get accepted, however a credit search will show up.

What salary should be earning if want to buy a property in the region of £150,000? I work in a supermarket and also, work for a small PA company too and they have offered me a fulltime position for 24,000 - 28,000 a year, would this be enough to get a mortgage of £150k, taking into considering I have a 5% deposit plus using the new governement newbuild scheme where they contribute 20 percent too?

puregeordie

kinh wrote: »

Hmm, you say you wouldn't use a developers mortgage adviser, would it be different if they can sort you out a good deal?

The good thing is I can reserve the home for £1 instead of £500 so I won't really lose anything if I don't get accepted, however a credit search will show up.

What salary should be earning if want to buy a property in the region of £150,000? I work in a supermarket and also, work for a small PA company too and they have offered me a fulltime position for 24,000 - 28,000 a year, would this be enough to get a mortgage of £150k, taking into considering I have a 5% deposit plus using the new governement newbuild scheme where they contribute 20 percent too?

Mmm, Few things to consider here from what you have said,

How do you know if your getting a good mortgage deal if you don't ring your own bank or choose a mortgage yourself?
How long have you had a fulltime position as this will also be a factor.
Also make sure they do a soft search when getting a MIP.

Good luck.

hamster2013

rule of thumb is that lenders tend not to go over the 3.5-4x your annual package
so if you are at the top end of 28k/annum (they will take this into aco!!!! only if you are no longer in your probation period) - the most generous lender will lend you up to 28x4 = £112k
which still keeps you short of £38k - your 5% deposit, i.e £30.5k
the figures would end up matching if the government provides the full 20% - but then you will have a further debt - which will play in your affordability of 4x your annual gross.

considering the low LTV, i wouldnt expect a great mortgage offer being offered to you via that broker - i would walk into a branch and have a chat with a bank manager - if you go to the bank you currently bank with, they will have all history in their accounts and will require (you would think!!!!) less paperwork.
if you want to walk into hsbc and check what they have on offer can be a good indication too (they dont work with brokers....)

kinh

puregeordie wrote: »

Mmm, Few things to consider here from what you have said,

How do you know if your getting a good mortgage deal if you don't ring your own bank or choose a mortgage yourself?
How long have you had a fulltime position as this will also be a factor.
Also make sure they do a soft search when getting a MIP.

Good luck.

That is true, hmm, so when I hand over £1 to reserve the house, do I need to follow through with the credit application? I will make sure it is a soft search also. Don't want to be rushed into things.

Ideally, I want to shop around and get the best possible deal.

kingstreet

If you are a FTB doing Help To Buy, you have no choice at the moment, it's Halifax or no-one.

Direct, or via a broker, it's the same product. Affordable housing fixed at 3.19% for two years with the 1% stamp duty payment if buying for 125 - 250.

ChopperST

Crunch the numbers on money supermarket yourself to get an idea what you will be looking at as a monthly payment then speak to a broker.

That way you aren't going in blind.

GL and congrats!