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First Time Buyer's Guide To Mortgages

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Comments

  • 1sttimefrustration
    1sttimefrustration Posts: 4 Newbie
    Currently hunting for my first mortgage as a first time buyer. Have very solid salary and 30% deposit, good credit rating, can move shortly etc.

    My financial footprint is at my parents' home address as I've had a number of different rental properties over the years.

    This has been the basis of rejecting my mortgage application. This is bizarre! The reason I've kept my credit and bank details at parents house is because I've had to move around every 6 months. The fact that this should be the sole basis of rejecting my application is in my mind (and yes I'm biased!) ridiculous.

    Any advice or other similar experiences?

    I'm concerned all the best deals for a 2 year fixed mortgage I'm going with are going to be off limits due to this. Please help!
  • izzyreppin
    izzyreppin Posts: 4 Newbie
    Hi, i shall apologise in advance if this is not the right forum for my question but here goes....
    We have booked an appointment with the mortgage advisor - we are ftb and are self employed, the mortgage advisor has told us (over the phone) what we need to bring with us - one thing being one years 'set of accounts' - what does this mean exactly - sorry if that sounds silly! We are a retail business and obviously we keep a cash book and VAT records and all bank statements, invoices etc. So will we need to pay our accountant to do it - (in the way that he does our tax return? Or is this something we can do ourselves? With the return of stamp duty in our price range we are looking to save money where ever we can and our accountant can be a little pricey!!
    Thankyou very much for any advice offered!
  • EagerLearner
    EagerLearner Posts: 4,976 Forumite
    Hi izzyreppin,
    Essentially it's the data that was used to submit your previous tax return.
    To save cash, take it all with you first, then see if that's enough for him, before you spend money with the accountant.
    Normally the advisor will want to know how much came in, how much went out re running the business.
    Then from what is left over, he will see what you paid yourselves as salary and use this for income multiples re mortgage.
    He will also need to see what all your home costs are - ie: rent, car, shopping, bills, schooling fees - etc.
    Many mortgage companies are very strict now on self employed people, I was told I needed 3 years records when I looked into it a while back.
    Hope this helps and good luck.
    MFW #185
    Mortgage slowly being offset! £86,987 /58,742 virtual balance
    Original mortgage free date 2037/ Now Nov 2034 and counting :T
    YNAB lover :D
  • Mr.Mulla
    Mr.Mulla Posts: 448 Forumite
    Thats A good tip there....thanks..
    Mr. Mulla
  • Kate_1
    Kate_1 Posts: 1 Newbie
    Hi all,

    I've read through a lot of the information and advice on the forums so i hope i'm not asking a question that's already been answered elsewhere.

    I'm looking to buy my first home. I have more than £50k in savings and my salary is about £28k. I'm aware that mortgage lenders are generally lending 3-4 times salary but would my savings play a part at all in how much i could borrow? I'm looking to buy on the outskirts of London/heading into Surrey.
  • likklegem
    likklegem Posts: 33 Forumite
    First Anniversary Combo Breaker
    liggins wrote: »
    Yeah i would have thought it would effect the mortgage, the mortgage company might (i would have thought) insist on there own survey and if they think you're over paying they wont pay out.

    I would renegociate based on the survey with the EA/vendor

    Liggins - Sorry I never got round to thanking you!!! 've just done it now. Seller accepted £150k for it, so although we are now having to pay stamp duty(£1500) I'm looking at saving £3.5k on the house.:j

    Exchange in 9 days and counting can't wait!!!Thanks for your help!
  • COOKIES
    COOKIES Posts: 22 Forumite
    Hi there, my boyfriend and I are first time buyers. We will be relocating due to his work commitments towards the end of the year. He is in a stable career and unfortunately I have been unemployed for a month and am actively seeking employment. Once I am in a job we want to look at getting a joint mortgage application approved. However, because of relocation i will have to leave whatever employment i am in and search for something in a new area. How does this affect our mortgage application?

    Is there a certain length of time a person has to be in employment before their wage can be considered to contirbute to a mortgage application?

    any advice would be great :D
  • wessexw
    wessexw Posts: 224 Forumite
    On the subject of 3 months worth of bank statements, in January for account went £90 overdrawn for 2 days due to christmas bills coming in, this is something that doesn't happen very often to me. Would I be better off to wait for the January statement to dissappear from the 3 month list or would the lender not mind that too much?
  • vl2588
    vl2588 Posts: 1,352 Forumite
    Photogenic First Post First Anniversary Combo Breaker
    Hi, sorry to add to such a long thread but as it's a small question I didn't think it was worth a new thread.

    I am 28 with only about £3k in savings due to my rent being so high compared to my income. I am on £21k a year and have no-one to help me. I want to think a mortgage isn't totally impossible but it seems so right now.

    Am I looking at saving up at least 10% deposit at the moment? I am worried that getting on the property ladder needs to be done soon or I will be paying off the mortgage after I am retired/won't be able to retire.

    Thoughts?
    Weight loss: Start weight: 80kg; Current Weight: 77kg; Target weight: 55kg
  • SelenaLouise
    SelenaLouise Posts: 144 Forumite
    First Anniversary Combo Breaker
    Hi, Im also trying to save up to get to 10% and am wondering if anyone knows of any places who are still willing to do 5% or 10% mortgages.

    Am desperate to buy my own place!
    vl2588 wrote: »
    Hi, sorry to add to such a long thread but as it's a small question I didn't think it was worth a new thread.

    I am 28 with only about £3k in savings due to my rent being so high compared to my income. I am on £21k a year and have no-one to help me. I want to think a mortgage isn't totally impossible but it seems so right now.

    Am I looking at saving up at least 10% deposit at the moment? I am worried that getting on the property ladder needs to be done soon or I will be paying off the mortgage after I am retired/won't be able to retire.

    Thoughts?
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