First Time Buyer - Few questions before seeing broker/bank

jstw

Hi,

I was hoping for a bit of advice, firstly on whether it is worth seeing a broker in my situation:

• First time buyer with £27,000 of own money with potential for £30-40k gifted from parents
• Currently have an outstanding 0% 4 year £7,000 loan (4 months in, 32 remaining).
• Salary of £20,000 - due to go up next June and each year there after.

I was also wondering whether it is worth paying of the loan, I have no need for it apart from it was offered to me at start of new job and decided to take the opportunity to snag the interest on it.


In terms of affordability I am hoping to borrow £100,000 (property value around £160,000). This is 5x income which I understand is at the edge, if not over, standard lending. I am a single guy with no commitments and therefore outgoings are pretty low. I will also take on a lodger for the 2nd bedroom and rent out for (£4-500pcm) but I understand this has no bearing on a mortgage application?


In terms of credit situation, I checked experian recently and I have nothing detrimental. Never missed payments or taken a pay day loan etc.



I have an appointment set up next week with my bank (Santander) but was thinking I might be best to speak to broker instead?


Any advice on my situation would be appreciated (just wanting to get out of the rental market asap!).

ACG

All sounds fine, the loan will not be an issue for most lenders as it only has 4 months remaining.

Check Santanders or any other lenders affordability calculator - no point sitting in on an appointment if its never going to pass affordability.

jstw

ACG wrote: »

All sounds fine, the loan will not be an issue for most lenders as it only has 4 months remaining.

Check Santanders or any other lenders affordability calculator - no point sitting in on an appointment if its never going to pass affordability.

Sorry should have been that clearer, the loan is only 4 months in, still have 32 months remaining. But can be settled early, and is with Santander too.

ACG

Ah gotcha.
I would still say put it through the calculator.

It appears there is only the affordability which is a slight issue, thats something you can check yourself. You can get a broker on it but I dont think I would go and see Santander unless you can make it fit on their calculator first.

https://www.santanderforintermediaries.co.uk/calculators/affordability.aspx

jstw

ACG wrote: »

Ah gotcha.
I would still say put it through the calculator.

It appears there is only the affordability which is a slight issue, thats something you can check yourself. You can get a broker on it but I dont think I would go and see Santander unless you can make it fit on their calculator first.
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Useful calculator, with loan included max borrow £79, without £100k. Looks like I'm paying off that loan! Should I do this before I arrive at the appointment next week or will it not matter if I do it after speaking to the adviser?

Thanks for your help.

ACG

No you can do it when you like.
I have never used Santander myself so Idont know their criteria fully but usually it would just be a condition of any offer that it is repaid - youcan usually pay it off after you have the mortgage offer.