What do i need to get a morgage?

[crazymotorbik...]

Hey,

Just after a bit of advice.

I've just moved out of a flat with my GF and i'm now looking for a place on my own.

My dads mate is selling his flat for 75k, 2 bedrooms, nice area etc.

Now i have the 10% deposit but i'm not sure what else i need! My details are as follows:

I earn 19k a year.
I've only worked at my current place for 3 months.
Ive never been in any financial trouble and i have an excellent credit rating.

Any advice is gratefully received,
Cheers,
Shaun.

[technophobe]

In the current climate, you'll probably be needing more than 10%. Most mortgage companies want 20% or more!!

You'll need records of all your previous addresses for the last 3 years (I think - it could be 5 years), and proof of income for the same period.

Go see a financial advisor, most of them get paid by the mortgage company, not you. They're not free, it's just that the mortgage company adds a tiny bit to your mortgage to pay them. But what's £400 on top of £75k?

The advisor will be able to tell you about the different types of mortgage, and what would be achievable.

To give you some sort of idea, I have a mortgage for £64k ish. That's a repayment of around £300/month over the next 36years (it was a 40 year mortgage)!!! I think the interest rate was somewhere around 6%, on a 5 year fixed mortgage.

Remember when buying a house/flat, you'll need to find money for solicitors fees & surveys - though sometimes these can also be added to the mortgage.

Expensive, this property game!!
____________________
Riding isn't dangerous, crashing is. A 'good' ride is one from which you can walk away. A 'great' ride is one after which you can use the bike again.

[aaronb74]

I agree with technophobe, you'll certainly struggle with only 10%, and any rates would be terrible.

What makes you think you have an "excellent credit rating"? I don't mean that to sound cheeky, but I've heard people talk about having a great credit rating because they've never been in debt/had an overdraft/had to borrow money, which, tbh, is pretty much the opposite of a great credit rating.

This is a very useful site with loads of useful advice
____________________
Current bike - 2006 ZX6R

[crazymotorbik...]

Thanks for the advice so far

I guess i dont have the credit rating i think i have then!! Maybe i'll just say im very good with money lol I don't understand financial things, i just know how to look after my own money!!

Must admit this far you've managed to talk me out of buying somewhere lol Think i'll rent for now instead!!

Cheers,
Shaun.

[Villers]

Ive just been through this. Bought a house for £120k.

Im 27, My basic is £39k a year and I have a 10% deposit.

Based on my basic wage and the fact i am debt free they were willing to offer me about 145k against something like 160k's worth of house.

In order to get a mortgage you will have to go through quite a pain in the arse process. Ive been to a few banks and some independants. They were ALL willing to offer me a mortgage based on a 10% deposit. It is true however that the rates and deals get better with bigger deposits, typically they get better at around 20% so its a big difference from your 10% and you need to do the maths over the term of the mortgage Vs having the cash in your pocket.

I would personally reccomend Natwest as they are doing probably the best first time buyers rates with no set up fee's. They will want basically all of the above before they will give you a 'quote in principle' where they accept you subject to a few more investigations.

You will need to provide evidence of your identity, at least 3 months wage slips, the end of year statement thing (p60 or something like that), some bank statements and a deposit. You will be put through your credit checks and given your principle quote. Natwest do a fixed rate of 5.99% with a 10% deposit.

Once you have been accepted you will need to have the property valued to ensure its worth what the mortgage value will be. There are different levels of valuation, ranging from making sure its not subsiding to a very thorough inspection that involves drilling into walls etc. These cost anything from £250 upwards for the lowest form and big bucks for the rest. If the lender are then happy with you and the property you will get your offer.

You will then need to instruct a solicitor to act on your behalf. They will do the required searches, ensuring that the land is freehold and registered etc etc. They will negotiate everything and sort out the paperwork. This altogether can cost anything (local to me anyway) from £670 (my lowest quote) to £1100 (my highest).

Once all this is in place all you have to do is pay the fee that the lender has for transferring the cash over, and sort out paying for the mortgage. Then its council tax, water rates, electricity, tv licence etc etc etc plus your luxuries!

For a 75k mortgage minus the 10% deposit I would expect about £400 a month as an esitmated figure for the mortgage alone in the current climate.

Theres a lot to go through but good luck with everything
____________________
RS125 > CBR6 > SV650S > ZX636R > GSX1300RZ Hayabusa > 06 RSVR Mille > SV1000S > Street Triple 765 RS

[Mrs Kickstart]

Hi

Many banks still accept a 10% deposit for first time buyers. They also have online calculators so you can put the figures in and see what you come out with.
like HSBC the other banks website will have them too.

So for example someone earning 19K with no debts and a 10 grand deposit could borrow 66K over 25 years at 425 a month.
Although to get a quote for you you will need to go through the process.

However once you have bought a house you need the money to maintain it so make sure you look at your whole budget !

Regards
C
____________________
Help fight the safety camera partnerships -- www.pepipoo.com

[Villers]

Yeah and don't go with HSBC unless you got a whopping deposit. They have steep set up fee's too.

Looks like I wasnt too far out with my guestimate though
____________________
RS125 > CBR6 > SV650S > ZX636R > GSX1300RZ Hayabusa > 06 RSVR Mille > SV1000S > Street Triple 765 RS

[Sparks!]

I've just done a quote with HSBC, seems they will only lend me £95,000 Means for a £130k house I'd need £35k cash up front + legal fees, how the fuck am I meant to save £38/40k?

Fucking joke!
____________________
Current Toys: 06 Yamaha WR250F | Nissan 350Z GT | Tech 4 Homes

[Villers]

I went into the HSBC bank and had a meeting with them. They were offering me the highest of any bank I went to but their deal was something like 6.9% with a £600 set up fee.

People with a deposit like you mention sparks are either a couple where theres 2 of me (man/woman on a fairly good income living at home and can save oodles monthly) or people who have been paying a mortgage for a while. Its absolutely stupid to expect people to have such amounts of cash lying round.

I just wish i had started saving earlier, I only really started putting the effort in less than 12 months ago, before that I would just buy bikes and cars and piss it up the wall. If I'd started a year before I did I would be in a very pretty position. Easy to look back and say that now though

You can also factor in if you are getting the mortgage on your own or with your partner and if you can trust them as far as you can throw them. In my case its neither as she doesnt make enough cash to even make a dent on the mortgage payment. I do trust her though.
____________________
RS125 > CBR6 > SV650S > ZX636R > GSX1300RZ Hayabusa > 06 RSVR Mille > SV1000S > Street Triple 765 RS

[J0Al1]

In addition, have a Guarantor.

[Robby]

I'm somewhat surprised at people suggested you go direct to a bank straight away. I used London and Country mortgages ( https://www.lcplc.co.uk/ ) and found them pretty good.

I bought a flat about 2 months ago. A few notes:

It isn't just you that needs to be suitable for the mortgage, it's the property. I've been in the civil service for over 5 years, which makes me about as stable a person as you can imagine for lending to. The only company that offered me a mortgage were RBS, on a 5 year deal at 7.25%. This is because I bought an repossessed, ex council flat in a 10 storey block. 4 other people tried to buy that place and couldn't get a mortgage. I only had a 10% deposit too, against a flat worth £87k. This means a mortgage of about £78k, and repayments of £570/month for capital and interest.

Are you going to have anyone else living there, or just you? It may be difficult to get a mortgage given that short time with the current employer, and paying off ~£500 per month of mortgage on £19k could be tricky. Remember that council tax and bills will add half again.

Extend your overdraft as far as possible before getting your mortgage. If you decide to fit a new bathroom or kitchen, or do some significant redecorating, you'll need to have a safety net available. You will spend more than expected doing the place up.

[Kwaks]

Currently going through the remortgage scenario as I get the ex off the deeds.

Current lender U turned at last minute and refused me a mortgage on my own, even though I have payed it myself for the last 4 years

Seems they couldnt understand that when removing the ex my last financial link to her would be gone ( her credit is poor) and refused to lend me 1.5 times my annual salary

Looked elsewhere, and decided that as I plan to sell this house on in the near future that I would go for an interest only mortgage. Monthly payments dropping from £547 to only £236, and I have topped up another 10k in the amount

Now the current lender (RBS) is playing funny buggers trying to hold onto me, despite 2 letters and around 15 calls since 24/07 they STILL have not released my final settlement figure.
____________________
Fallen Angel "Nae sniffing my seat now!!!!! "
www.cliqueycuntsmcc.co.uk
I AM NOT A FAST RIDER!!!!!!!!!

[Harold_Shand]

I used a mortagage advisor who couldn't get us a mortgage after weeks of stress.

I was looking at moneysavingexpert.com and London & Country and reccomended, gave them a call and they got us sorted, despite our peculiar situation at the time.
____________________
BCF's 6th favourite poster 2009-2010

Harold_Shand's theory might be the best explanation.

[Villers]

[ash t]

Have you tried Britannia??

They offer free advice, and can take care of conveyancing, life cover, B&C insurance and all the rest of it. They even have an account which you can put your deposit into, and as long as its in there for 6 months you get £250 cashback and a free standard valuation on a property when you take a mortgage out with them

They also lend upto 90% LTV.

You wont find an IFA recommending Britannia because Britannia dont pay them commission!
____________________
When You're Starting To Choke, Take Some Pills With Your Coke, Its Hyserical