Advice please!

skizz_b

Foxy-Stoat wrote: »

Don't be too hard on the lad, he is probably on the "spend as you earn" scheme, as am I and a lot of other peoples I know....if the joint income was £35,000 then they would still have no savings.

At least the debts have reduced and on track.

Either drop your target purchase price to say £275,000-£300,000 tops or save for a year and reduce your LTV, ideally you'll want 75% LTV to make it easier on your wallet and for the lender to accept you....also if the interest rates go up in a year or 2 you won't be over stretching yourselves.

That's good advice.

To be honest most of my excess income has gone into the upcoming wedding but once that is done it won't be difficult to filter that into the deposit pot.

skizz_b

silvercar wrote: »

Stick the £50k in a savings account that you have already had open. That way you can say the £50k has come from savings.

I've had a savings account open with the coop for about 5 years (groan) and that has had a constant flow of money into it for some time - good idea as it will check out! thanks!

skizz_b

I think the good thing for my situation is that there is about 11 months before this purchase is made so plenty of time to evaluate etc. I won't over stretch as I know how much we are paying in rent now and want to match that if possible.

Apart from stamp duty what other costs should I factor in? Solicitor fees? And what % of the cost should I put on one side? I'm aware stamp duty will be just over 10k.

Foxy-Stoat_3

You can call solicitors in your area and they will quote you. My first time mortgage legal fees where around £1300 but the purchase price was a lot less than yours so may be more.

Good luck.

Dave_Ham

skizz_b wrote: »

My line of work also suggests I have an awareness of value for money and credit etc (I work in finance for the government)

This is my single, favourite post of the day (already)

On a serious note, you need to assess that you can afford the mortgage and associated costs. Based upon your incomes, chances are the banks will lend, but if and when you start a family; how does this affect your joint incomes?

All the best

ch3101

Do you know how much the payments on a mortgage of 350k are? You won't get much change from 2k a month depending on your interest rate.

If your wife were to give up work for kids, can you really afford that as well as the extra costs that kids bring?

Brighty

There's no way i'd want to have a 350-400k mortgage costing about £2000 a month over my head on that sort of salary, that's scary. Also, what happens to the 75k combined income once you start a family? If she gives up work then you're potentialy down to just your 40k, or she could stay at work but be paying for full time childcare which wouldn't be that much better.
Brighty

Brock_and_Roll

skizz_b wrote: »

!My line of work also suggests I have an awareness of value for money and credit etc (I work in finance for the government)

Hmmm given the level of our national debt and the fact that the printing presses are working overtime, you could argue quite the opposite!

On the other hand, if the OP works in finance for the government they may be confident that loose monetary policy is likely to continue indefinitely and so are confident to borrow as much as possible safe n the knowledge that inflation will erode the mortgage debt!

:rotfl::rotfl:

skizz_b

Dave_Ham wrote: »

This is my single, favourite post of the day (already)

On a serious note, you need to assess that you can afford the mortgage and associated costs. Based upon your incomes, chances are the banks will lend, but if and when you start a family; how does this affect your joint incomes?

All the best

The income isn't a problem, it will remain the same when we start a family.

Thrugelmir

skizz_b wrote: »

Ah, much like a lender you are playing the presumption card

I merely reply to what I read.

Our genes determine our personalities for life. At a base level whether we are optimistic or pessimistic, risk takers or cautious in nature. When it comes to handling of personal finance more often or not this is reflected in the data that CRA's compile. Statistically defaulters are likely to reoffend in the future, that's a fact.