Looking for some mortgage advice

Rick62

I'm amazed he suggested a one year from One account. Bristol & West are much better generally. 2 years is far too short, you should probably be looking at 5 to 7 years to give yourselves a chance to reduce the balance. The likelyhood is that prices will fall and on a 2 year deal you will have difficulty remortgaging.

BMcN

I think we will see another mortgage adviser. I am thinking that we should maybe try and raise another £5000, leaving £3000 for fees and the like. Might mean the sale of my car though.

If we were to go for a 5 year fixed, would that also mean we were tied to that mortgage for 5 years?

UK007BullDog

Yes that is correct. Would you want to sell before the 5 years are over?

firesidemaid

re. fees

there will be your arrangement fee for mortgage approx £5-600.

solicitors/conveyancers fees, which if you are just buying will be approx. £5-600.

sometimes maybe also a small booking fee for mortgage, but hopefully not - so the rest can go towards your deposit (no stamp duty below 125k either).

if you do have other debts, pay them off before you buy and then save towards your deposit - all the other bills that go with life, utilities, cars, food etc etc come in at approx £6-700 a month.

BMcN

UK007BullDog wrote: »

Yes that is correct. Would you want to sell before the 5 years are over?

Quite possibly mate yes.

Re the stamp duty, I thought that it was £125,000? Is it different in Scotland to the rest of the UK? (We are in Scotland).

Gorgeous_George

A One Account is absolutely pants in your situation IMHO.

Firstly, you need to decide if house-purchase is the right thing to do. Can you not rent more cheaply? This will give you time to learn about all the other expenses of adult life. It will also allow you time to develop your relationship with your gf. Find out if the stresses of new jobs, financial management is difficult with limited finances. It is one thing having enough money to pay the mortgage etc., but what happens when the boiler breaks down or the car is trashed? Or the gf finds someone new? Or gets pregnant? Buying a one bedroom flat right now would be extremely stupid in most cases. You need to buy something that will meet your needs in 3 - 5 years' time. More importanty than ever in a stagnant/falling market.

So, if you still think a mortgage is for you, decide how much you can afford. Compare the different deals that are available. There are plenty of online calculators ti use or try this one that I put together at the weekend. I'm not an IFA or mortgage broker and therefore any comments are just my opinion.

Once you know how much you could borrow, have a look at houses marketed at prices upto 110% of what you can afford. If there are some that seem suitable (at least one bedroom more than minimum needed), go to the mortgage lender or broker and tell them what you think you want. Listen to their advice and decide which mortagge best suits your needs. Fill in the application form and keep your fingers crossed that it is successful.

If you are serious about buying, I'd stay at home (if possible) and save a substantial profit. You may find that saving £500 per month saves you £1,000 per month ormore if prices fall and I see no reason why they shouldn't.

GG

kezzamc

I just got the subscription email from MSE and it was explaining some things about Northern Rock...

I am very concerned about the paragraph where Martin mentions people who borrowed 125% mortgage..and their options for when they want to move to avoid Northern Rocks uncompetitive rates (a result from the recent events).

My partner and i have been with NRock for a year...on a 5 year fixed rate mortgage. So 4 years to go...

We borrowed £128K and bought our home for £108K....

i am a teacher, he is an electrician ..our salaries will increase over the next 5 years by several grand..but...what should i be investigating and considering...what mortgage options are out there now? HELP ME!..i wont sleep tonight worrying...and then i have to teach hyper and cheeky 11-16 year olds tomorrow all day : (

HELPPPPPPPPPPPPPPPPPPPPP!

Gorgeous_George

You have 4 years before you need to start worrying. By then, things will be different (better hopefully). You are in a much better position than most.

Overpay if possible or max out your ISAs for the next 4 years.

Don't worry. Be happy now.

GG

Rick62

Kezzamc, You will not have a mortgage for £128k, you will have a mortgage for about £103k and an unsecured loan for £25k. if I were in your position I would concentrate on reducing the mortgage over the next 4 years, giving you the greatest flexibility to then switch your mortgage even if prices are down a bit.

Rick62

BMcN wrote: »

Quite possibly mate yes.

quote]

Why are you wanting to buy now if you are expecting to sell within the next 5 years? The expectation is that house prices (and flat prices even more) will drop for the next 4 years.

You should only, IMO, be buying now if you have found a must have home that you are expecting to stay in for 10 years plus. Particularly if you are needing to borrow anything close to 100%.