Looking for a Mortgage

rakesh_2

Hi everyone

I have already given a £300 reservation fee for a new house. I am now looking for a mortgage. The house is part of a housing association which means i only need to get a mortgage which is half its value.

The figures are as follows:

Property Value: £170,000
Mortgage required: £85,000
Rent and service charge per month: £250

My Income and savings:

Annual income: £21,000
Savings: £26,000 in Cash Isa
Other savings: £9,000
Bond: £30,000 [matures in 2012]

I do have £11,000 in debt on credit cards. However, like with most people on this site i have done a SBT to my current account - thus i can give that money back ASAP......

Can anyone let me know which is the best mortgage to take?

Thanks in advance

poppy10_2

Don't take an £85,000 mortgage. That is a 100% mortgage for your half of the house, meaning the mortgage deals available to you will be limited and will be more expensive. Utilize your £9000 savings as a deposit so that you only need a £76,000 (90%) mortgage.

Dan_Collins_2

Why have you got credit cards of that amount with all those savings, or have you got the money interest free and invested it??

I would put a deposit down or you will only have two lenders to pick from and around .5-.8% higher in rate. Leeds and Woolwich (Avoid woolwich at all costs at the mo due to service) will lend 100%. Nationwide will lend up to 95% and I imagine you will be hard pushed to beat them and their srvice.

The thing you have to remember is, can you afford to pay the credit card payment and a mortgage? If not get rid of them and if you can put 5-10% you will pay a lower rate.

poppy10_2

Dan_Collins wrote: »

Why have you got credit cards of that amount with all those savings, or have you got the money interest free and invested it??.

I think he is stoozing

Mortgagehero

If the credit cards are at 0% then that's fine although the only problem there could be later when you can't switch to another 0% free deal without paying fees to the new card company for the privilege.
Best advice would be to pay them off and go into the new property debt free.
In addition using further savings to create a deposit at 5 or 10% of the £85,000 share will improve the deal you will receive.
As the office is closing I can research some deals for you tomorrow that are specific to these deposits.

homer_j_3

how can you research deals on so little details. There are many things that could affect a deal which have not been discussed.

rakesh_2

Hi guys

Thanks for the replies so far. Spent most of yesterday looking at mortgages and its such a nightmare.

Anyway just some clarification. The £11,000 on credit cards is on 0% and i transfered that amount to my current account last week [i was stoozing!]. I have been advised that i should pay that back to help my mortgage application. Once that is completed i intend to stooze again

The best deal i have found is with Nationwide. They are offering a mortgage of £80,000. I will be putting a 5% deposit on the house. The good thing about this deal is that i don't pay any fees! The mortgage is @ 5.99% for a two year tracker. Is this good? Or are there any better offers around?

Thanks once again - i really do appreciate your advise.....:)

Dan_Collins_2

homer_j wrote: »

how can you research deals on so little details. There are many things that could affect a deal which have not been discussed.

No body has given any deals, just general advice. I would not go researching deals for anybody anyway, its to close to touting for me, so dont worry you can have a go now!

homer_j_3

Dan_Collins wrote: »

No body has given any deals, just general advice. I would not go researching deals for anybody anyway, its to close to touting for me, so dont worry you can have a go now!

I was referring to MortgageHero...

As the office is closing I can research some deals for you tomorrow that are specific to these deposits.

Mortgagehero

In answering your first and latest requests:

Can anyone let me know which is the best mortgage to take? and The best deal i have found is with Nationwide. They are offering a mortgage of £80,000. I will be putting a 5% deposit on the house. The good thing about this deal is that i don't pay any fees! The mortgage is @ 5.99% for a two year tracker. Is this good? Or are there any better offers around?

That deal sounds fair as often the arrangement fees can be very expensive in return for a slightly lower interest rate. In your case the loan would be at a size that would make this deal more sense.

Of course there are many factors regarding giving deals to you. You understand that without knowing your full circumstances any deals given are purely for guidance and cannot be interpreted as you being acceptable to every lender.

Dan_Collins_2

Well I would be careful Hero, if it went wrong and the FSA were involved have you got a KFI, Research and an R4R lol!!

Am joking but you do have to be careful, I tend to push ppl in the direction of a few lenders rather than specific products but you cant go that wrong with Nationwide!