Affordability query / Leeds building society

Liam999uk

Hi there.

Me and my wife have had an offer accepted on a property for 195k. We will be putting 37k down as deposit so would have a mortgage for 158k. We earn 47k basic between us but i can earn quite a bit more with overtime. Does this sound like a sensible lending amount. I've worked it out to be about 26% of our basic take home pay on the mortgage which will be around £765 a month.

Also we will be doing a 3yr fixed with the Leeds Building Society. What are your thoughts on them?

Many thanks.

Thrugelmir

Would your budget be stretched if you were paying interest at 7% ?

Liam999uk

I've worked out that after the 3yr fixed that £145k will be outstanding if I don't make any overpayments. So remortgaging at that amount in late 2017 and IF interest rates went to 7% then i'm reckoning £1085 a month which is 37% of total basic take home pay. A lot tighter but yes would have to live with it.


Now in reality I can't see interest rates being that high for a long time but never say never.

Nxa219

I wouldn't use these guys I have had a lot of problems and delays on a simple straightforward application

add http etc to use link below wont let me add links as new user

forums.moneysavingexpert.com/showthread.php?p=66353361&posted=1#post66353361

Redacted

Been lurking for a bit as we've been going through our application, but thought now was as good a time as any to join, when I saw your post.

To provide a bit of balance to some of the negative experiences about Leeds Building Society, our application seems to have gone through quite smoothly (not sure if our broker has had to do any fire fighting in the background though!!).

Full application submitted by broker on 06/08/14
Further documents requested on 08/08/14
Money taken for fee and survey on 11/08/14
Further documents requested on 18/08/14

Email from broker on 19/08/14 saying survey/valuation instructed. Email from Estate Agent on the same day saying they had taken place!! I assume we were told late that they had been instructed, rather than them being instructed and completed on the same day. However, it must have been a quick turnaround as we received the text giving our access details to download our survey before we received the posted letter from e.surv telling us they'd been instructed and explaining their service.

Text received from e.surv on 20/08/14 allowing us to download our HomeBuyer report.

Offer issued 27/08/14.

We applied for a 95% LTV, with a free valuation. We have credit card debts and a background CTL, so were limited on lender. Couldn't be more pleased with the outcome, all considering.

Hope this provides some assurance that they're not always bad.

Nxa219

I am in the midlands.. 3 months and counting.. complete numpties ask for extra bits and bobs one item at a time, then take a week and a half to look at it.. get confused and request more items.

Offer was submitted 12th May .. still pending as they are now getting confused with all the paperwork they requested additionally in dribs and drabs.. so we are having to send it all again as one package so ease their confused little minds and get the final checks ticked off and offer letter sent out..

no loans, debts, credit card debt, good credit history, 2 working professionals one with prev mortgage now transferred to her mum so mortgage free and moved from wales (bank statements not good enough to be used for income proof AND proof of address ..need seperate documents... wasn't on electoral roll at time of application.. but has been for 2 months now.. )


I could go on and on but hand on heart my expereince of them is as one of the most imcompetent companies I have ever had the mispleasure of dealing with

Liam999uk

Hi there. My full application has gone in today so there is no turning back now! I'm from Leeds myself so im hoping some hometown loyalty might go my way! Will report back in due course!

Redacted

Good luck. I hope your experience is more like ours, than like Nxa's.

Thrugelmir

liam999uk wrote: »

Now in reality I can't see interest rates being that high for a long time but never say never.

No one foresaw a base rate of 0.5% let alone it staying at this level for so long.

Liam999uk

Thrugelmir wrote: »

No one foresaw a base rate of 0.5% let alone it staying at this level for so long.

Agreed but i shall be very very suprised if rates went to anywhere near 7% in the next 3 years. We'd have a lot of repossessed houses in this country thats for sure!

Thrugelmir

liam999uk wrote: »

Agreed but i shall be very very suprised if rates went to anywhere near 7% in the next 3 years. We'd have a lot of repossessed houses in this country thats for sure!

Corrections aren't painless.