First Time Buyer's Guide To Mortgages

SusanCarter · 23 June 2006 at 10:15AM

Will pm you income figures as don't think my husband would appreciate my posting them publicly but I'm happy for you to reply in the forum. We'd probably be looking for something aroung 80k. We have alost 10k in savings but we'd oviously need to keep some in reserve as a back up and use some for all the costs assosciated with buying house so not sure how much we'd have left for a deposit. We currently pay £420/month in rent and our total expenditure is equal to our current income.

Lychee · 14 July 2006 at 4:50PM

I want to buy a flat to be rented out - I'll have to let the mortgage lender know I am planning to do this, dont I? How will this affect the mortgage I can get?

Thanks

MortgageMamma · 9 August 2006 at 10:49PM

This all depends on whether it is your first purchase deemed to be your residential property which you live in, and then ask for permission to let from the lender. the lender has a right to say no. if you let it out without their permission you are in breach of the conditions of your mortgage and they can penalise you for this, by demanding full repayment of the mortgage. There are special rules if you plan to let it to a close member of your family which could also deem it as a residential mortgage, or if you let part of it out and you remain in residence. If you would like further clarification on these please ask.

You also have to be careful you have the correct buildings insurance in place with an extended unoccupancy clause, to perhaps 90 days in the event you end up tenantless. Most policies will only cover you for 30 days unoccupancy.

To take a buy to let mortgage, which is specifically designed for those wishing to rent out a property, you will need a larger deposit, perhaps 10-15% dependent upon the lender you approach. These mortgages will cost you marginally more than a conventional mortgage and most do not use your income to ascertain the lending amount available to you, but use the rental income to merit this.

Remember, if you rent out a property you have to declare it to the inland revenue.

dancingdandare · 15 August 2006 at 4:20PM

This is my first post after discovering this site 12 months ago when i was still a student, i must say its help put into action alot of money making schemes.
Anyway now i have saved enough money for a reasonable deposit and to pay the legal fees, stamp duty and all the rest of the over pirced rubbish we are meant to pay, i have decided that i would like to take the plunge to buy a place ( if possible, here's the catch).

I have been working for 9 months, since leaving uni, got a good job which pays enough. (25-26k), i am 24, always had good credit history, always paid on time.....i have enough for a 10 grand deposit and i am looking to get a morgage for another 140k. I have been told from a morgage adviser that i can get a morgage with the deposit that i have even though my wage does not come in line with high street requirements for a morgage of this size. I have been told it is done on a affordability basis and not just on your salary? Is this correct and what sort of morgage do you think i should be looking at? what are the options and possibilities....can anyone help.... do i need a bigger deposit???

please help wise people.

Thanks for you time

Victoria_Falls · 16 August 2006 at 11:21PM

Have a look at this website

http://www.firstrungnow.com/

SunnySusie · 6 September 2006 at 12:00PM

Also possibly of interest, this little FTB story from a friend who worked hard to get on the property ladder. It can be done, its not easy but he bought a three bed semi in London after saving a large deposit over a number of years, thanks to plenty of MSE tips!

tina35 · 3 October 2006 at 6:36PM

Reading this article on mortgages may help:

http://www.housebuying-guide.com/how-to-choose-the-right-mortgage/

tina

SHARONG_3 · 16 November 2006 at 9:10PM

I'm looking in to purchasing a part buy/ part rent property with my local Housing Association- Shared Horizons.

But before I go for it, I need some advice.

Does anyone know if I can put in a lower offer on the asking price (total property value £125,00- looking to buy 50%) or do I have to pay what they say?

I would also be grateful for any other advice relating to part buy/ part rent.

paulfitz · 9 January 2007 at 12:04AM

First Of All, hello to everyone on the site, read through a few of these posts and they have helped me quite a bit, but as an absolute novice just wanted a bit of "clarification".

Right I'm about to start looking for my first house with my girlfriend - been together 5 years pretty secure (my mates have tried to warn me off it!!!!). We have browsed a few that we like, at the moment just on t'internet and driving past those which took our fancy.

I am currently a teaching assistant earning 11k a year whilst my girlfriend is a manager in retail earning 17k. Within the next year she will be promoted and will be earning about 22k, and within the next 3 years I will be a qualified teacher (Im currently completing my degree with the OU) - will these payrises be considered?

Will the fact that I only work 30 hours a week and/or being a part-time student count against me???

I have a quite a bit of debt (student loans and a credit card or 2) Ive been late with a couple of card payments - but nothing drastic - will this count against me????

My mum and dad have mentioned mortgages at the moment are about "3 + 1" - does this mean "3 x our combined salaries + 1 of the highest earner"???

On our current salaries (17k & 11k) what would be a realistic mortgage - by my reckoning of the above "3 + 1" its about 100k-ish...Is this right?

And finally, I know I may be getting ahead of myself here, but one of the houses we have seen is priced at £92k (3 bed, semi, decent-ish area) however it is in need of "modernisation". From what I have seen basically it needs guttin' and starting again. However Ive always fancied a bit of devleopment, and have links with builders, plumbers, sparks and joiners so could get the work at "mates rates".
I think we could get the house for about 85k - no chain, bad condition and all that.

Does this sound like a decent investment, or is it too much of a gamble for a mortgage virgin????

Thanks in advance, you have been a great help already.

Paul

Tommo1952 · 1 February 2007 at 10:49AM

We have lived in our ex local authority house for the last 24 years and decided to buy it some 15 years ago.As these houses were built just after the war (WW11) as cheap alternative housing they were of steel framed construction and were given a life span of 50 or 60 years (So I am led to believe). On talking to a neighbour who is selling his steel house I now find out that in the next few years you will not be able to raise a mortgage on this type of property. Personally I love the simplicity of the house and every time I decorated (the very 1st time that is) I removed the either gyproc or upstairs hardboard interior wall cladding surveyed and painted the steel or as I am a welder replaced (under the window sill steels new one's) then lagged with rockwool insulation and dry lined and plastered all the interior walls.
I feel this house will outlast most other buildings. Should I place it on the market now or is someone scare mongering.
Cheers Dave

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First Time Buyer's Guide To Mortgages

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