mortgage guidance please

TracCap

Hi
I am new to this so please be gentle. I have recently sold my house and hope to exchange contracts in the next 3 weeks. I was thinking that I would move into my parents home and in effect become a first time buyer. This is still the main objective but yesterday I viewed a fab house and am thinking of maybe putting an offer in. I will have approx £74000 proceeds from my house sale and would be looking for a mortgage of £60000 on a sole income of £16500. I am thinking that I would take the mortgage over 24 years initially on a fixed term rate.
This is now the tricky part - do i trawl my local high street building societies or scan the net. I realise that the net cannot give you the bigger picture so i need some advice and need it quickly. If i am to put an offer in on this house i would need to get her to reduce it and so need to give her assurances that i am keen and have a good deposit and can move swiftly so need to have a mortgage in principle quite quickly. Can anyone out there help - i have sold the house myself so an quite savvy but mortgages are a little more tricky and I cannot afford to make a mistake.
Would be grateful for any advice
Thanks in anticipation

LouLouHelen

Hi

I suggest you go to https://www.unbiased.co.uk there you will be able to search for an Independent Adviser in your area that offers mortgage advice. Since mortgages have been regulated by Financial Services Authority there are rules around the mortgage advice process. Call them/e-mail them and they are obliged to explain how they get paid, what you want is an adviser who will search the 'whole of the market' and who will not charge you a fee but offer the option of being paid a 'procuration fee' by the lender. This will mean that you will get their advice at no cost to you.

They can then search the whole market place and obtain you an Agreement in Principle with a lender online in a matter of minutes/hours. This Agreement will be the thing that will give everyone the assurance that you can obtain a mortgage to buy the house. The adviser should also be happy for you to give their name to the estate agent and this will also show the estate agent that you are serious.

The adviser will need to get some further info from you to undertake this process so be ready with info about your income, outgoings etc. If you have held a mortgage in last 12 months you probably won't be considered a First Time Buyer though.

Hope this helps! Good luck!

Ian_W

LouLouHelen wrote: If you have held a mortgage in last 12 months you probably won't be considered a First Time Buyer though.

Im not sure that's terribly important in terms of your mortgage in that you have a clear history of paying a mortgage for x amount of time. With your seller it's a big advantage as is the size of the deposit you're able to put down.

I'd also have a look at the moneynet/moneysupermarket links in the Morgage section of this site and perhaps try calling one of the brokers listed there.

I've just tried running your income with no outstanding debts thro' NATIONWIDE's calc and it comes up a bit short at £57,700 - so income may be your problem. Other lenders are more generous but quite often that's reflected in slightly higher interest rates.

Also you may get postings from some of the helpful brokers who lurk on these threads pointing you towards lenders with better income multipliers etc - so keep checking back.

Good luck.

LouLouHelen

As someone with no house to sell you are in a strong position as far as any sellor is concerned.

Standard Life Bank and Northern Rock offer high income multiples, take a look at their websites.

Good luck!

meanmachine_2

There's no advantage mortgage wise, in being a FTBer.

Your advantage comes from not being in a chain and having a subtantial deposit.

With property prices on the slide, your short term plan of living with the oldies is v sensible. Give it six months (if you can both bear it), keeping a close watch on your localmarket, and then you might find you've saved yourself an extra 10K!

roversbabe

LouLouHelen wrote:

Hi

I suggest you go to https://www.unbiased.co.uk there you will be able to search for an Independent Adviser in your area that offers mortgage advice. Since mortgages have been regulated by Financial Services Authority there are rules around the mortgage advice process. Call them/e-mail them and they are obliged to explain how they get paid, what you want is an adviser who will search the 'whole of the market' and who will not charge you a fee but offer the option of being paid a 'procuration fee' by the lender. This will mean that you will get their advice at no cost to you.

They can then search the whole market place and obtain you an Agreement in Principle with a lender online in a matter of minutes/hours. This Agreement will be the thing that will give everyone the assurance that you can obtain a mortgage to buy the house. The adviser should also be happy for you to give their name to the estate agent and this will also show the estate agent that you are serious.

The adviser will need to get some further info from you to undertake this process so be ready with info about your income, outgoings etc. If you have held a mortgage in last 12 months you probably won't be considered a First Time Buyer though.

Hope this helps! Good luck!

Hi there

I was having a read of this board as I'm looking into changing my mortgage and was hoping to find a local independant advisor.

Thank you so much for this link

:A

rb

EDIT: I've just had a look at the site - so useful

Thanks again

:dance: