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First time buyer, no deposit question...
pj57_2
Posts: 7 Forumite
Hi,
I will be contacting a 'Whole of Market' advisor next week, but I wanted to ask here for some opinions of my situation.
Hopeful first time buyer, single, no bad credit but no deposit or savings...
Good pay rises in the last two years mean my financial situation is a lot more stable, I'm not using credit cards, have transfered the balances onto a single "life of balance" card at a low rate with a minimum payment direct debit setup and the cards all cut up to prevent temptation
I'm looking at a property of around 125,000-130,000 which for a 100% mortgage would give me a repayment figure of about 800-850 per month. This is comfortably affordable if it wasn't for the loan I've been trying to pay off as quickly as possible (10,000 over 2 years - hence the rather high 450 per month).
I'm wondering if any mortgage company would consider giving me a 105% mortgage so that I can pay off the 6400 loan and get the house?
The other possibility I was thinking about would be to extend the loan duration and amount (to say 12,000 over 5 years - bringing the monthly payment down around 250 per month) and allowing me to use 6,000 for a deposit.
The third option is to simply wait the remaining 14 months (perhaps less if I push some more money into paying it off sooner) until I have fully repaid the loan before attempting to purchase my first house. I worry though about '10%' growth in house prices each year could make this a more expensive option in the long run.
All comments and opinions gratefully received
I will be contacting a 'Whole of Market' advisor next week, but I wanted to ask here for some opinions of my situation.
Hopeful first time buyer, single, no bad credit but no deposit or savings...
- 31,000 / year income, stable employment.
- 6,400 left on unsecured loan @ 7% paying 450 per month
- 3,000 on credit card, 4.9% life of balance (cards all destroyed so no more adding to that).
Good pay rises in the last two years mean my financial situation is a lot more stable, I'm not using credit cards, have transfered the balances onto a single "life of balance" card at a low rate with a minimum payment direct debit setup and the cards all cut up to prevent temptation
I'm looking at a property of around 125,000-130,000 which for a 100% mortgage would give me a repayment figure of about 800-850 per month. This is comfortably affordable if it wasn't for the loan I've been trying to pay off as quickly as possible (10,000 over 2 years - hence the rather high 450 per month).
I'm wondering if any mortgage company would consider giving me a 105% mortgage so that I can pay off the 6400 loan and get the house?
The other possibility I was thinking about would be to extend the loan duration and amount (to say 12,000 over 5 years - bringing the monthly payment down around 250 per month) and allowing me to use 6,000 for a deposit.
The third option is to simply wait the remaining 14 months (perhaps less if I push some more money into paying it off sooner) until I have fully repaid the loan before attempting to purchase my first house. I worry though about '10%' growth in house prices each year could make this a more expensive option in the long run.
All comments and opinions gratefully received
0
Comments
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There are companies out there that will go up to 125% of the property value and based on your income, you would have no problems qualifying for the 105% that you require.
Your whole of market mortgage adviser shouuld be able to help.
Regards
JoeKI am an Independent Financial Adviser.Anything posted on this forum is for discussion purposes only. It should not be considered financial advice. Different people have different needs and what is right for one person may be different for another. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser who can advise you after finding out more about your situation.0 -
Thanks for your reply JoeK, good to know 0
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