Working out where to start

NWOIHTS

Hi

I am currently looking at applying to see if I can get a mortgage. I have a good deposit saved up and have a regular income as well. Looking at all the mortgage info is quite daunting and so no idea where to start.

What I have gathered is that the more deposit I have for a certain house value then the less percentage my mortgage repayments will be and at what I am looking at it seems to say I can borrow up to £84k

If I am looking at a property that is more than that maximum value I can borrow but I use my deposit to make up the remainder will I then be paying back a huge % for my repayments?

I can't seem to work out how much that would be. My deposit is about £22k

Thanks

N

Thrugelmir

Let us know the price of the property you are considering buying. then a more detailed reply can be given.

kingstreet

If you put down a £22k deposit and have an £84k mortgage, you'll be able to buy a property for an agreed price of £106,000.

The £84k mortgage will have a monthly payment which is based on the rate you can achieve for a loan to value of 79% and the term over which you wish to borrow.

Typically, those new to homebuying choose a 25 year term.

If you borrow £84k over 25 years at a rate of say 4%, you'll be paying £443 per month for the mortgage.

If that is too much, you need to see what you can do to alter that. Better rate, lower amount, longer term or a combination of the three. Be careful that in finding a lower rate you don't simply add fees to the cost instead. Often, the better the rate, the higher the set up costs and vice versa. At your likely level of borrowing, you may be better with a higher rate and no/low set-up costs.

NWOIHTS

Thrugelmir wrote: »

Let us know the price of the property you are considering buying. then a more detailed reply can be given.

Price is £115,000, and the remainder would come from my folks who agreed to help me out if I need some extra to make up the balance.

I might be able to haggle though and bring it down to closer to the balance I can put up myself.

N

originalmiscellany

What is your interest rate going to be? You will have to consider what will happen if interest rates go up by several percent from their record lows, can you afford that?

bigadaj

Don't forget fees, no stamp duty at that level but conveyancing costs and disbursement s could be what £1500?

NWOIHTS

originalmiscellany wrote: »

What is your interest rate going to be? You will have to consider what will happen if interest rates go up by several percent from their record lows, can you afford that?

Hmm I have no idea, is that not determined by your individual circumstances etc?

If you mean fixed or variable probably go for fixed, that's what a few people have told me so that it holds in case the rates go up.

amnblog

NWOIHTS wrote: »

Hmm I have no idea, is that not determined by your individual circumstances etc?

If you mean fixed or variable probably go for fixed, that's what a few people have told me so that it holds in case the rates go up.

This is all new to you and you need some clear guidance. Patching together bits of 'advice' from friends, family and websites is not the way to go.

Go and get some advice one to one from an experienced mortgage broker.

NWOIHTS

amnblog wrote: »

This is all new to you and you need some clear guidance. Patching together bits of 'advice' from friends, family and websites is not the way to go.

Go and get some advice one to one from an experienced mortgage broker.

I don't know what 'patching together bits of advice' means, is this not what the forums, and speaking to people who already have mortgages are for - so you have a fair idea of what you are even looking for before going to see a MA?

mrluke

amnblog wrote: »

This is all new to you and you need some clear guidance. Patching together bits of 'advice' from friends, family and websites is not the way to go.

Go and get some advice one to one from an experienced mortgage broker.

What a knobber . Hes asking for advice on a public forum , best getting information before he meets a mortgage broker ( and thats even if he needs one ! ) .

NWOIHTS

I came to the conclusion the house I was looking at was probably stretching out of my range a bit so have continued looking. I have now located a house for offers over 85K (I'm in Scotland btw) although it needs some modernisation inside but outside looks ok so far.

Going to go have a viewing of it first and decide if it is what I want then look into getting a quote for a mortgage.

Andrew