Which mortgage provider for FTB

jayjay21

Looking to take out first mortgage with my partner in the new year.

Have had a quick look around online at mortgage calculators which give some really varied results, I thought the MMR would make everything more consistent...

We have no debts and do not have any financial dependants and no other commitments.

Lloyds seem to offer roughly £200k via their calculator where as nationwide offer £220k...

As we are both so young we feel we may as well take the maximum, have done the sums etc so no fear over repayments.

Don't really want to contact so many mortgage providers to find out the full extent of all of them, however the extra £20k would open another door or two...

Have any other FTB found that some lenders offer more than others? And how accurate are the calculators?

[Deleted User]

Get a broker. They will do all this work for you, and they're invaluable when you're a FTB and haven't done it all before.

looknohands

I'd go speak to a broker, I got an MIP from Halifax and it said I could get a mortgage for £238k (with 10%), max £260k property value. However i spoke to a broker and her figure was slightly lower at 200k (with 10%) so max £220k value. Then it depends on what you think to, I've actually set my sights even lower £210k max total value, so £189k mortgage, as the repayments at those upper levels seem quite high considering interest rates are the lowest they've ever been.

jayjay21

Thanks for the replies.

Might approach Nationwide due to the amount the calculator has offered.

How adversely will an AIP effect our credit files?

looknohands

Our broker advised us not to AIP until we had found, we have now been looking 4 months so glad we didn't, broker mentioned that having the credit check with Nationwide might effect us as we have a small deposit (10%). You can get an MIP with Halifax which doesn't credit check and the calculation tends to be quite high.

GoldenShadow

Our maximum from Natwest was 225K. I would never have asked to borrow that and grudgingly went as high as borrowing 190K. In my line of work my salary will virtually double in the next two years when I qualify and I still stayed on the more cautious side. I'm 23, I figure I've got plenty more time to borrow more and still pay it off early. I would be more inclined to borrow the max if I knew I didn't want to move and this house was 'the' forever house, but not for a first one. Personal choice.

I think other's suggestions of a broker are a good one. Some lenders AIPs are a hard search others are not.

csgohan4

Why do you need an AIP now when you haven't even found a place, they also have an expiry date of about 1- 3 months or so depending on lender.




If EA ask if you have proof of funds or AIP, give them evidence by passing your broker's contacts to them to confirm affordability.. of the offer price. I never gave them my bank statements or an AIP, in fact the AIP was done AFTER offer. Don't let EA dictate what you must do, that's what brokers are there for.


In addition giving an estate agent your AIP gives them more power over you. They know how much you can afford and can push you to offer more through 'mystery buyers'.


A broker is highly recommended, fee or fee free that is up to you. We cannot recommend one due to forum rules. go to Unbiased.co.uk and find one near you.

Going direct wouldn't be the end of the world, don't expect any hand holding or help during the process, whereas a broker would do most of the work for you, all you need to do is sign some papers and scan some documents.

Whatever you do, do not use estate agent services such as brokers, conveyancer, due to the poor quality of service and rip off potential.


What are your combined salary. I wouldn't try and get a mortgage at the top end as you run the risk of rejection.


Mortgages now a days are awarded based on affordability and to a lesser extent your salary. If you earn 60k a year but you have 20k of debt that seriously puts a dent into what you can afford and it won't be 270k.




Have you checked your credit file files with all three agencies and note down any inaccuracies or missed payments. Ignore the credit score, lenders do not use them it's a red herring. The key is the history.


Check out the sticky on house buying if you haven't yet/
https://forums.moneysavingexpert.com/discussion/4930313


Too many credit searches in a short period will increase the likelihood of rejection as lenders see you trying to get credit and desperate for it in a short period of time. Meaning you are bad with money.

amnblog

jayjay21 wrote: »

Thanks for the replies.

Don't ignore them.


Engage an independent broker before you shoot yourself in the foot.