Mortgage advice needed for a first time buyer

christoff07

Hi,

I'd be grateful for any advice that you can give me about mortgages for first time buyers.

Here are the basic details:

My partner and I are currently looking to buy our first property.

She earns £18100 per year and I earn £15500. I have student loan to pay off but apart from that we don't have any other outstanding debts.

We have about £5000 for a deposit (which is being lent to us by my parents) and very minimal amounts for the rest of the start up costs (fees, stamp duty, etc).

We have seen a flat for £99,950 that we may be interested in purchasing and would like to know what the best choice of mortgage may be.

Ideally we'd like to keep the re-payments at no more than £600. (is this possible?) I've seen a few good deals with Northern Rock but their arrangement fees are high - seeing as we don';t have much money for costs like these this may not be ideal.

What would anyone recommend?

Many thanks.

Robert_Sterling_3

Try to get a first time buyers discounted rate but be aware of what the monthly payment might be when the discount ends.

payless

important to consider deals with

1. no mig ( or such a great deal to make up for this )
2. Can you really afford a very low rate with an extended tie - many people regret it afterwards
3. Consider fixing if budget is tight/ concerned about rate rises

- and before Lisyloo says - also consider is better to wait to see if house prices drop.

read up on some info

see http://forum.moneysavingexpert.com/cgi-bin/yabb/YaBB.cgi?board=Mortgages;action=display;num=1096617811 for some links

christoff07

Thanks for the advice.

The price of this flat has already been put down so we wouldn't be paying over the odds for it.

Will check out the links that you've attached

BenL

Christoff

Hope you don't mind but I did a little digging for you as work is quiet.

I got my first house last year and went to Nationwide so thats where I have started.

They will lend £117500, based on 3.5 times joint salary. This would be reduced if you have debts like your student loan so put the repayments into their calculator.

I then went to the quick quote function and added mortgage £94500 for a house worth £99500, 5% deposit.

The payments are hovering around the £600 mark you wanted.

2 Year Fixed

years 1 & 2 - £577, year 3 onwards £606

3 year fixed

years 1-3 £596, after £606

5 year fixed

years 1-5 £608 after £607

trackers are also available.

BenL

oh yeah, stampt duty will be approx £1000 and the conveyance fees, product reservation fees & survey for the bank will take about another £1000 off you.

Anything else just give me a shout as its still pretty fesh in my head.

Top tip, if you know anyone who is a surveyor give them a shout, my girlfriends god father is and he saved us loads by looking at houses before we mentioned things to the mortgage company.

A bottle of whiskey covered that.

christoff07

Thanks for the help BenL.

Will have a look into what Nationwide are offering.