Any advice welcome

Heisenberg87_2

Me and my partner are currently saving to buy our first property and was wondering if anyone could give us some guidance on our current situation and how likely it is that we would be accepted for a mortgage.

Currently we have the following;

Joint Income: £42,000 (this could be £45,000 by the time we apply)
Current Monthly Joint expenditure: £815
Will have saved £15,000 (with NW save to buy)
Looking at a £190,000 property with a 7% deposit
Currently been with nationwide my whole life if that adds any benefit.

On the above has anyone been working with similar numbers and been accepted? I just constantly hear doom and gloom from relatives friends and just want a glimmer a hope that with what we have it can work. Any help would be great...

Sheesha

Hi, my Husband & I were/are in a similar situation.
Joint income - 45k
combined monthly outgoing - less than 800
deposit saved so far - 10k
offer accepted on a 137,500
our mortgage in prinicpal went up to 210k (but we didnt want to up that high, as 1st time buyers wanted a cheaper house)
halifax mortgage accepted on a 10% deposit, house purchase currently going through searches with solicitor.

You need to check both your credit ratings on Credit Expert or Exquifax (in my experience Equifax's rating is alot harsher)

hope this helps!

eviekins

It shouldn't take you long to save up the rest to make it up to a 10% deposit.
With a 10% deposit rather than 7% you have a much better chance. Also, the bigger the deposit you put down, better mortgage deals will be available to you with lower rates of interest.
If I were you, I'd wait a little longer and continue to save

Pixie5740

The credit ratings generated by Equifax and Experian are a load of tosh. Neither Equifax or Experian lend money so who gives a monkeys what score they give you?

Certainty check your credit files to make sure there the information on them is accurate by don't waste your money paying for the pointless credit scores.

Have you factored paying SDLT, solictors fees, mortgage fees etc into your calculations?

Iamdave

As above, speak to a mortgage adviser and see the comparisons in a 25 year mortgage with a 10% deposit and a 15% deposit.

You will likely find that ore the course of the loan it will cost you an extra 5 figure sum just in interest when saving an extra £5k over a few months will nullify this.

Also are u looking at a specific house listed at £190k or just in that price range?

As a point of reference I bought at the same price range as you with a 25% deposit. If I'd have had a 10% deposit I'd be about £50k worse off by the end of my mortgage, and paying the best part of £200 extra a month

Heisenberg87_2

Iamdave wrote: »

As above, speak to a mortgage adviser and see the comparisons in a 25 year mortgage with a 10% deposit and a 15% deposit.

You will likely find that ore the course of the loan it will cost you an extra 5 figure sum just in interest when saving an extra £5k over a few months will nullify this.

Also are u looking at a specific house listed at £190k or just in that price range?

As a point of reference I bought at the same price range as you with a 25% deposit. If I'd have had a 10% deposit I'd be about £50k worse off by the end of my mortgage, and paying the best part of £200 extra a month

We would love to save that extra 5% but it's case of we have to move out of my parents house within the next 6 months.

Heisenberg87_2

Pixie5740 wrote: »

The credit ratings generated by Equifax and Experian are a load of tosh. Neither Equifax or Experian lend money so who gives a monkeys what score they give you?

Certainty check your credit files to make sure there the information on them is accurate by don't waste your money paying for the pointless credit scores.

Have you factored paying SDLT, solictors fees, mortgage fees etc into your calculations?

We have but as first time buyers we don't know exactly how much we are looking at. We know that we get a few fee's paid for if we went with the save to buy as I would be entitled to the flex exclusive deals. We would also get an additional £1,000 as well from Nationwide. So we are hoping to have 2 to 3 thousand for fee's. Would this be sufficient in your experience?

Mattygroves2

You are going to need £1,900 for the SDLT, then you'll need solicitors fees including all the searches, transfer fees and then the valuation fee. How much you need will depend on what you are buying - a leasehold property will mean more solicitors fees than freehold - and what sort of survey you want done. It looks like you get a discount on your mortgage booking fee and £1,000 cashback after you've completed but you'll have to pay all the fees before you get that.

I've not bought a property for a while but last time the solicitors bill for a leasehold flat was approximately £1,500 incl VAT. You will find lots of threads here discussing conveyancing costs which will give you an idea of the separate elements.

To be safe I would have thought that £1,500 for solicitors, £500 for valuation and the £1,900 SDLT would be a reasonable budget so about £4k but safer to set aside £5k. On your income and declared outgoings that should be less than 5 months of savings and the stamp duty won't need to be paid until the end so you would be able to save for that whilst the rest of the process is happening.