Any chance of a mortgage?

elder1

Hi All,


I'm viewing a property on Saturday worth £55000, but am not sure if I'm going to be able to get a mortgage. I spoke to my bank and they gave me a mortgage in principal at the moment. I currently have about £3650.00 in savings which would cover the 5% HTB as First time buyer. A friend said she would lend me £500 if I need it, and at the end of June and July when I get paid I will be able to put £700 per month into the savings pot, for an additional £1400 to my current savings....is this going to be enough? I know it can take several months for a mortgage approval.


I want to add the fee's and valuation, etc. onto the mortgage(which I know costs more, but with a smaller deposit it makes it a bit more affordable) as well. Mortgage calculators put the mortgage repayments just a bit more than what I pay in rent at the moment, and usually have at least £500 extra each month after all outgoings.


It was mentioned from the Estate Agents about speaking to their mortgage broker as well after the viewing for some "Free Advice". Though am not sure if I can afford a broker, or would be best going straight to the bank?


Any advice would be greatly appreciated.


Thanks all.

stephenni1971

If you go through your bank you will only hear wht they have to offer you - even if there are other lenders with much better offers in the market.

A whole of market broker will be able to do research on your behalf and find the most appropriate deal. many will charge a fee whether you complete on a mortgage or not but there are some who will only operate on the fee from the lender. However at the level you are talking about that might be hard to do as the fee from a lender would be no more than about £180.

If you have a decision in principle you have been credit checked and scored and its up to you to back up the information you gave for the DIP with proof, payslips, bank statements etc As long as you can do that you SHOULD be fine...

amnblog

At that price you need to check first which lenders minimum loan and price levels fit for you.

Thrugelmir

Build up your savings to increase your deposit and cover the purchase costs. While the mortgage may only be slightly more than you are currently paying for rent. With home ownership comes maintenance costs etc. Something your LL covers at the moment.

Also interest rates are going to rise. That's a fact. So you need to be able to afford higher repayments without issue.

elder1

Thanks for the information.


Proof of income, etc. is not a problem and I earn around £19233 per year working full time in a School as an IT Technician, and have worked there for almost 8 years.