Advice for first time buyer?

matthew2456

Looking at buying a house for ~£125k and can just about afford a 10% deposit.

What are the best options for a mortgage? Planning to live in the house for a couple of years and then continue to rent it out when we move on.

Thanks

Matthew

matthew2456

bump..........

herbiesjp

The best options for YOU will depend on your own individual circumstances.

What is is that you would want from the mortgage? Variable or fixed rates? Interest only or repayment mortgage? Offset facility? Overpayment facility? Borrow back facility?

Also, the lenders available will depend on your income, your current debts, your credit history to name a few things

If you could give a little more information it would help

Lipstick_2

What is/are your income/s?
Do you have any adverse history?

matthew2456

Income is aprrox £20k at the moment but in two years time will be double that, my father will be a guarantor for the mortgage.

Not sure on fixed or variable rate? what do people recommend.

So probably looking at interest only for the first two years, then rent it out indefinately afterwards and buy another house to live in.

A Quick trip into halifax said:

£125 000 home
£12 500 deposit
£570pm interest only

herbiesjp

So you would need a mortgage of £112500, based on earning £20k pa

So you are looking at 5.6times your income

Now while it is probaly possible to do this, I would just question whether in the current climate it is actually wise to do this

I would seriously look at the figures very closely and talk to a professional about what options you potentially have available, that way you will be able to look at what interest rate increases will do your mortgage repayments

As usual make sure they are whole of market advisers

maninthestreet

Please let me know what job you do, as doubling your income in 2 years is something I would like to do.

matthew2456

Paying the mortgage and bills etc will not be a problem with my current income.

In two years time I will be graduating hence the pay increase and suspected move leaving this potential house empty to let.

As for interest rates the inital quote I had from Halifax was @ a fixed rate so them fluctuating and crippling me is not an issue.

So any recommendations on the best plce to get a mortgage?

£121 000 House
10% deposit
£108 900 mortgage
interest only
fixed rate

Thanks