First time buyer mortgage question...

djkav

Hi, I'm a first time buyer and looking for a mortgage.

I have my eye on a house for £100k.

I have a deposit of about 60k, and would like to borrow £40k over 5 or 10 years.

Would my best bet be to find a reputable broker?

Thanks.

djkav

Nobody wanna offer any advice.

I have now done some recalculations.

I'll have a deposit of around £65k and looking to borrow £35k over 5 or 10 years.

lee111s

If you tell me how you made 5 grand in two hours I'll offer some advice!

djkav

lee111s wrote: »

If you tell me how you made 5 grand in two hours I'll offer some advice!

I never made £5k in 2 hours O.o I take it you never checked the post dates ?!?

I'm a self employed computer programmer / systems analyst / ethical hacker. As well as having a regular part time job with an employer.

Anyways, my financial sources are not the discussion here.

Lomcevak

I'll have a deposit of around £65k and looking to borrow £35k over 5 or 10 years.

Why do you want a broker? Given that you're looking at 35% LTV and 1x salary, quite probably less for IT, I can't see much difficulty. Assuming you have no credit issues lurking, is your concern the split freelance/employed income? If so your current bank might be the best option as they'll be able to assess your previous income.

Keekles

If your situation is as simple as it seems, you can probably go into most high street lenders (your own bank would be a good start) and be offered a genuinely good deal.

If you're concerned about the absolute best price or have reservations with regards to how processing your income(s) will be, then by all means see a reputable broker.

kingstreet

A broker isn't going to be cost effective.

On a whole market basis, the commission on £40k will be about £125. The broker fee which will be needed just to make the case profitable will make the advice completely top-heavy when smaller mortgages are best suited to no/low fees, cashback and higher rates.

The OP should do their own research and choose a product which provides best overall value over the product term, not the lowest rate at all costs...

djkav

I was more concerned about getting a good mortgage deal for 5 or 10 year max. I wasn't sure if the high street gave mortgages for that short of duration. When typical mortgages tend to be 20+ years.

Am I correct in guessing that repayment duration is not an issue?

kingstreet

The mortgage term affects affordability, so yes, it is an issue. This does not normally affect the products you are offered though.

However, the usual suggestion would be to select a product with no early repayment penalties and take it over a longer and more affordable term, then make voluntary overpayments of your choice to repay it within your preferred timescale.

dimbo61

You could look at OFFSET mortgages if you do not get regular income every month?
Most lenders have a minimum term of 5 years and minimum loan of £25K
If you have an offset mortgage you could put savings into the offset account and reduce the Interest you pay