A few questions from a newbie :)

AceCobra1

Hey all,

Well, i just recently graduated and like most people, i'd like to eventually own a property. So I was just wondering if you guys could give me a few hints and tips:money::money::money:

Just wondering, see when you go for a mortgage and buy a flat say 100k, do you need to have £10k i.e. 10% for the flat? I know most people can borrow upto 3x thier salary but when i consulted my bank manager, he told me that because we are professionals, we can get upto 10x our salary without a gurantor - can anyone in a similar position confirm this? Also, if i do not have the 10% amount for the flat, would i need to save up until i can afford that? If not, how do you guys get the cash? Finally, how many years do most people take to pay back thier mortgage? I won't be buying anything for now - no cash anyway at least but also with the subprime mortgage and all that kinda problems, i recon property prices will get cheaper:T:T

A few people in my class actually bought properties this year although I am puzzled as to how they can afford the 10% deposit without help from mum or dad

Thanks in advance for the replies

Witsend_2

Hi AceCobra1 congratulations on your graduation I am not in a position to advise you just wanted to wish you well, good luck.

_Andy_

No lender on the market will lend you 10x your income. Besides which you wouldn't be able to afford the payments.

Deposit-wise you could get away with a 5% deposit albeit expect higher rates/fees.

AceCobra1

_Andy_ wrote: »

No lender on the market will lend you 10x your income. Besides which you wouldn't be able to afford the payments.

Deposit-wise you could get away with a 5% deposit albeit expect higher rates/fees.

So what did you think my bank manager was talking about? I definately did remember him saying something 10x coz i asked him if most people can borrow 3x normal income and he said it is slightly different for us?

_Andy_

AceCobra1 wrote: »

So what did you think my bank manager was talking about? I definately did remember him saying something 10x coz i asked him if most people can borrow 3x normal income and he said it is slightly different for us?

I think something's been mis-communicated somewhere along the line. For example, if you were to borrow 10x your income, that would pretty much be your net income gone just on the mortgage payment.

Some lenders will go to 5x income if your credit score is good.

AceCobra1

_Andy_ wrote: »

I think something's been mis-communicated somewhere along the line. For example, if you were to borrow 10x your income, that would pretty much be your net income gone just on the mortgage payment.

Some lenders will go to 5x income if your credit score is good.

Any ideas about my other question regarding the 10% deposit and all that ?:money:

_Andy_

Yep as I said you can go up to 95% (how long 95% mortgages will be around is another matter) but having a 10% deposit means better rates and more product choice.