First Time Buyer, advice please

studentchick1

Me and Boyfriend are looking to buy a house.

It is within our family so we are buying it cheaper.

It has been valued at £130,000. We have been offered it at £100k. We are looking to buy it now, from family for £50k and then pay the remaining £50k at the end of the summer.

This is due to me being a student and only working part time.

So boyfriends earns £15.5k, has excellent credit rating.
I earn £6k have, poor-average credit rating.

We have £4k debt, but paid monthly.

Is anyone likely to give us a mortgage for £50k? if so which places are best for a not fantastic credit rating.

We have been on some bank mortgage calculators, and they work out we could get £50k.

So which banks/building societys are best people like this.

I graduate this summer.

thanks in advance

homer_j_3

Firstly, the information you have provided is no where near enough for us to say who is good or bad for you.

You need to think about how you are going to borrow the additional amount and what provisions you will put in place to pay this. I.E will your family put a 2nd charge on the property stating that you owe them 50k?

You are looking at a scenario that will need a bit of information and consideration due to the number of factors involved. I would seek professional help on the basis that depending on your credit profile may complicate things further.

UK007BullDog

The bank calculators are not accurate on their websites. I dont see how you can get that much. Your loan will work against you and the poor credit record. Best would be to see a broker who can find you a most suitable product.

MortgageMamma

Hi there

I think you need to take some professional advice on this from an independent whole of market mortgage broker. By seeing a broker you will learn all the implications of a family sale under value purchase - not all lenders are happy to do it. You will also ensure you get the cheapest deal for your circumstances, and have support with the buying process and everything linked to it,

You won't get that from a bank, for a start you would only be told about their products and not anyone elses, and once your application is submitted they won't want to know - you'll be on your own - this is a horrible situation to be in and I often get clients coming to me after they have been direct to the banks quite traumatised.

Good luck whatever your decision

MM

studentchick1

Hi, thanks for the advice.

Please could anyone say where we might find a broker or advisor?

We are very confused at the moment, young with not much idea on mortgages.

many thanks

herbiesjp

Can you ask friends or family for any recommendations?

homer_j_3

recommendations are the best so ask friends and family. You can look in yellow pages or similar kind of directories.

The important thing to understand when you are looking for a broker is that they have access to as many lenders as possible so ask for the exact number of lenders that they deal with. Do not accept whole of market as an answer because whole of market means jack in the real world. I am whole of market and can access every lender that will take broker business but I have seen brokers claiming WOM status with 20 lenders they use.

You should not have to pay a fee for advice and there will be brokers that will do it for "nowt" but if you struggle to find anybody fee free due to the mortgage size, a small fee may be asked as some brokers may be put off because the fee they will get will be minimal and your case may not be straight forward.

HTH

dweeby

studentchick1 wrote: »

Please could anyone say where we might find a broker or advisor?

One recommended by this website is here, although we managed to find a better (cheaper) deal ourselves. If you give them a call, you need to be prepared to spend ~30 mins on the phone to them. You also need to have some idea of what you're looking for, so have a think about term (eg. 25 years), fixed or not (want to "fix" what your monthly payment will be), etc. They'll ask you all sorts of questions about your outgoings.

Brokers should be able to find you the best deal to suit your circumstances. The broker on the link above won't actually give you any quotes, unless your offer has been accepted (but they can't check on this...). Also be aware that they're sales guys as well as advisors, so once they've given you quotes - they'll keep calling you to ask if you're going ahead with the recommendation.

homer_j_3

dweeby wrote: »

One recommended by this website is here, although we managed to find a better (cheaper) deal ourselves. If you give them a call, you need to be prepared to spend ~30 mins on the phone to them. You also need to have some idea of what you're looking for, so have a think about term (eg. 25 years), fixed or not (want to "fix" what your monthly payment will be), etc. They'll ask you all sorts of questions about your outgoings.

Brokers should be able to find you the best deal to suit your circumstances. The broker on the link above won't actually give you any quotes, unless your offer has been accepted (but they can't check on this...). Also be aware that they're sales guys as well as advisors, so once they've given you quotes - they'll keep calling you to ask if you're going ahead with the recommendation.

I think as a FTB with no idea whatsoever, the best place would be a broker who can deal with you face to face. How you are to know what the best term, whether you want fixed, tracker, capped etc type deals.

Doing business over the phone where there are 2 people to give information to does worry me as it either takes the adviser 2 times as long to explain everything or the adviser relies on the first person explaining it right to the 2nd person. Recipe for disaster if you ask me.