Mortgage Advice Please

pappuyogs

Not sure is this is the right thread, as I saw one for House Buying as well.

We are looking to buy a house on mortgage early next year and would like some advice on this. We are Indian nationals (My girlfriend and I), living and working in the UK for the last two year. We were students in the UK two years prior to that. I have the following questions with regard to buying a house as am a complete newbie.

Is there any chance for us to get a mortgage?
What will the minimum deposit we will need to buy a house?
What are the other charges?
Is is possible to get a 100% mortgage as we don't have much savings?
What will be interest rates be and who offers the best?
What are the next steps?

Please could you help me out with these queries?

I earn about £25, 000 per annum and my GF earns £33, 000. Both of us expecting a raise in April.

Many thanks in advance!

Jonbvn

Hi,

I think you may find it very difficult to get any mortgage, and even if you do, most lenders will only consider a max mortgage of 75%LTV, given your circumtances.

However, suugest you consider using a fee free mortgage broker, who may know something I do not.

loksat

Hi,

Property buying process depends upon which region you live. Scotland is different from the rest. With regards to the mortgage, i dont see any reason why you dont qualify for a mortgage. Scottish widows provide 100% mortgage for certain professions. Check out their website. HSBC provides 95% for those who graduated in the last 3 years. Halifax provides 95% too. You can try getting a quote online and see if you qualify.

with regards to other charges it depends on the property price. Around £3000 for conveyancing, valuation and survey another £1000, etc,

The following websites should give you a fair picture.

http://www.bbc.co.uk/homes/property/
http://www.home.co.uk/guides/buying/

There are many more if you search in google.

pappuyogs

Many thanks for the replies. That's helpful, I will have a look around. Both of us have done masters and graduated in the last two years and we live in London.

payless

Do you have perm rights to reside or how long left on work permit

pappuyogs

My girlfriend's visa is valid till 2011 February after which she can apply for permanent residency. I have my visa valid until 2009 Jan.

herbiesjp

On that basis you should be fine.

Your one year visa may cause problems for some lenders, but others are more sympathetic.

What area of london are you looking at, and what prices are you looking at?

I would suggest looking at 100% may be more difficult due to the residency issue, however 95% should be ok and open up a few more doors

pappuyogs

Many thanks herbiesjp,

Not sure about the areas since buying in London is really expensive. We were thinking a bit on the outskirts with a budget not exceeding £300, 000. We may be able to arrange 5 %

herbiesjp

Personally I would look lower than that - if the areas permit.

As at that level (£300k) you would be looking towards 5 times your income - not impossible, but limits the choices available to you

I would again make sure that a mortgage at that level is indeed affordable to you not only now, but if rates increased in the future - get some real life quotes and figures to see how it would impact on you