First time mortgage

Abbiejade96

Hi everyone! 

Not sure if this is the right place (I’m new). I’m just looking for some advice really. 

Me and my partner are looking to move out, I’m 23 and he’s 22, I have been very fortunate to have around £30,000 given to me from my Nan when she passed. My boyfriend has only recently over the last year taken out a help to buy isa, I would ideally like to use around 20,000 and keep the rest for savings/furniture. 

I live in the south west, my boyfriend earns around 15,000 and I earn around 12,000 a year. Not much I know! 

Does anyone know how we start the ball rolling? Who we speak to, what we do? How do we start? And is there anything else we can do to help? I have no idea what to do in this situation! 

Thankyou

spadoosh

Realistically the very most youre getting is 5 times salary, they dont really use that any more but its a rough benchmark to use. 
So youre looking at a maximum mortgage of around £135,000, so maximum property price with your budgeted deposit would be £155,000. 

Id use 4-4.5 x income to be on the conservative side, your incomes are pretty low, which will impact your affordability so id be looking more along the lines of £128,000 maximum property price. 

Id start with whoever provides your current account and ask for an agreement in principle. Not suggesting using them for your mortgage but theyll know you better than most. Once you have an AIP you can start house hunting. An agreement in principle is a lender soft checking your financial position and basically giving you a rough guide how much they will be willing to lend you. Its not set in stone, later on they will carry out further checks but for themost part, AIP in place and you should be able to get a mortgage. 

Once youve found the house, id suggest using an independent mortgage broker to apply for your mortgage. You can do it yourself quite easily, but the advisors have much better understanding and knowledge of lenders lending criteria so can make things a lot smoother and probably save you a few quid too. 

Before you start all this both of you check your credit reports with the 3 main agencies and have a good look through to see if theres anything that might cause issues. 

I dont know what you can buy in the south west for £128k - £155k but good luck. Itll be a nerve wracking time, youll feel clueless, then youll fel like you know what youre doing and then youll feel clueless again. Overall getting a mortgage and buying houses is pretty straight forward, its just a fairly lengthy process where youll spend a lot of time apprehensive and waiting on decisions. 

Abbiejade96

spadoosh said:

Realistically the very most youre getting is 5 times salary, they dont really use that any more but its a rough benchmark to use. 
So youre looking at a maximum mortgage of around £135,000, so maximum property price with your budgeted deposit would be £155,000. 

Id use 4-4.5 x income to be on the conservative side, your incomes are pretty low, which will impact your affordability so id be looking more along the lines of £128,000 maximum property price. 

Id start with whoever provides your current account and ask for an agreement in principle. Not suggesting using them for your mortgage but theyll know you better than most. Once you have an AIP you can start house hunting. An agreement in principle is a lender soft checking your financial position and basically giving you a rough guide how much they will be willing to lend you. Its not set in stone, later on they will carry out further checks but for themost part, AIP in place and you should be able to get a mortgage. 

Once youve found the house, id suggest using an independent mortgage broker to apply for your mortgage. You can do it yourself quite easily, but the advisors have much better understanding and knowledge of lenders lending criteria so can make things a lot smoother and probably save you a few quid too. 

Before you start all this both of you check your credit reports with the 3 main agencies and have a good look through to see if theres anything that might cause issues. 

I dont know what you can buy in the south west for £128k - £155k but good luck. Itll be a nerve wracking time, youll feel clueless, then youll fel like you know what youre doing and then youll feel clueless again. Overall getting a mortgage and buying houses is pretty straight forward, its just a fairly lengthy process where youll spend a lot of time apprehensive and waiting on decisions. 

Thankyou for the reply! 

120-150 is pretty good in my area, a 3 bed house is probably around 160 depending on which area of the south west, obviously I don’t need a 3 bed at this moment in time. 

I’ll look into that and speak to a few people, I’ll try my bank too! 

Such a lot of detail and it’s made it a lot more clear! Thankyou!