Mortgage - First time buyer
Discussion
I'm a first time buyer and I'm expecting to borrow around 160k LTV will be either 85 or 90%. I've spoken to a mortgage advisor from a well known estate agents but frankly they were very pushy and said to get a mortgage in pricipale as soon as possible. Will this affect my credit history if I don't buy somewhere within a fairly short period? My other concern is I earn 27k a year but have an average bonus of 6k will the mortgage companies be difficult when It comes to proof of income? Any advice would be appreciated.
I had 2 agreements in principle as the first one ran out, I think they last 90 days, they can start to affect credit rating but I think 2 or 3 is fine before they have any impact.
Thats what they told me anyway,
The estate agents I went with were pushy as well, w****rs, and now I know better I wouldn't even bother with one until you have found the right house, my agreement was arranged within 12 hours and as far as I could tell the only real benefit (apart from the reassurance you may get the money you want) was it makes you seem a bit more serious if they mention it to the sellers when you put an offer in.
Also, I earn a bit more (not much!) and couldn't borrow half as much as that and put down a third of the total price as a deposit. That was feb 2011 so not too sure how willing they will be to lend with those kind of figures,
But good luck any way, hope it all goes well for you.
Thats what they told me anyway,
The estate agents I went with were pushy as well, w****rs, and now I know better I wouldn't even bother with one until you have found the right house, my agreement was arranged within 12 hours and as far as I could tell the only real benefit (apart from the reassurance you may get the money you want) was it makes you seem a bit more serious if they mention it to the sellers when you put an offer in.
Also, I earn a bit more (not much!) and couldn't borrow half as much as that and put down a third of the total price as a deposit. That was feb 2011 so not too sure how willing they will be to lend with those kind of figures,
But good luck any way, hope it all goes well for you.
Thanks for your feedback. I am concerned that when it comes down to it I won't be able to borrow that figure, would I be right in saying the accepted figure for a first time buyer is around 4.5 times your sallary? Which makes my loan limit 148500. I won't be wanting more than 144k at 90% LTV. I'm sure there are many good estate agents out there but from experience they only seem interested when your buying tomorrow.
Not sure what it is now but back I got the house in feb, took about 3 months to go through so say around nov 2010, the best I could do was 3.5 times my wage.
Since the financial troubles know one is willing to lend, even to people with solid finances and good credit its still a ball ache getting the money.
It helps if you have a large deposit, bigger the better and also bigger the deposit in relation to the total price, you can normally get cheaper interest rates for the mortgage.
Like I said, my deposit was 1/3 of total price.
Since the financial troubles know one is willing to lend, even to people with solid finances and good credit its still a ball ache getting the money.
It helps if you have a large deposit, bigger the better and also bigger the deposit in relation to the total price, you can normally get cheaper interest rates for the mortgage.
Like I said, my deposit was 1/3 of total price.
Back when I was buying in mid 2009 and apparently the agreements in principle didn't involve a credit check at all. I got two myself (and then a mortgage with the second) and there was no record of the first on my credit records.
I think the estate agents are pushy because they would get a lot of people who aren't aware of how much (or little!) they can borrow, so it shows they have the numbers down on paper and know where to look. Also (perhaps more importantly) it shows them your borrowing limit and how far they can push you.
I think the estate agents are pushy because they would get a lot of people who aren't aware of how much (or little!) they can borrow, so it shows they have the numbers down on paper and know where to look. Also (perhaps more importantly) it shows them your borrowing limit and how far they can push you.
AlfaSpider said:
I'm a first time buyer and I'm expecting to borrow around 160k LTV will be either 85 or 90%.I've spoken to a mortgage advisor from a well known estate agents but frankly they were very pushy and said to get a mortgage in pricipale as soon as possible.
Old trick. Get the client to do an AIP and they will then feel they are tied to you. Personally I'm not a massive believer in AIP's. Its better to have done your homework know roughly how much you can borrow then when you find a property move fast to get the best deal at the time. AlfaSpider said:
Will this affect my credit history if I don't buy somewhere within a fairly short period?
If you just do one AIP, it wont matter to you, however do multiple AIP's and it will knock your credit score. AlfaSpider said:
My other concern is I earn 27k a year but have an average bonus of 6k will the mortgage companies be difficult when It comes to proof of income? Any advice would be appreciated.
Is the bonus paid as one lump? How often have you received it? Can you back it up with P60's. Most lenders will take it into consideration, some won't. One will take it into account if it was paid in the last 3 months.You''re going to be right at the top of your affordability, if you have any other debt (c/c's, personal loans etc) it could stop you getting to £160k.
I'm still very much in the early stages of looking for a property, I can understand why from the agents perspective its good to have an AIP as it proves you have the funds available. I suppose this would also clear up whether there maybe any issues arising from the way my pay is structured.
The extra 6k a year is from overtime the only potential issue I could see is that it varies through out the year (considerably more in the summer than winter), I can provide proof of this through P60's. I don't have any personal loans, I do have a credit card with 13months interest free which I am using, should I pay this back in full before attempting a mortgage?
The extra 6k a year is from overtime the only potential issue I could see is that it varies through out the year (considerably more in the summer than winter), I can provide proof of this through P60's. I don't have any personal loans, I do have a credit card with 13months interest free which I am using, should I pay this back in full before attempting a mortgage?
Non of my buisness, but I hope your on a clear and guaranteed career path or are about to marry into/inherit a wedge. Earning 33k a year and spending 900 quid a month on the mortgage isn't going to be that much fun is it? Add on the insurances, council tax, bills and the fact most areas are sufferisng falling prices and it sounds like "goodbye disposable income" and "hello negative equity".
Also if you look at the average base rate from the last 25 years it would be around 7.5%
Now I'm guessing you are being offered mortgages at around 5% ?
If your rate went up to 7.5% at 160k your looking at finding another £250 a month.
Just sayin.
Also if you look at the average base rate from the last 25 years it would be around 7.5%
Now I'm guessing you are being offered mortgages at around 5% ?
If your rate went up to 7.5% at 160k your looking at finding another £250 a month.
Just sayin.
rufusgti said:
Non of my buisness, but I hope your on a clear and guaranteed career path or are about to marry into/inherit a wedge. Earning 33k a year and spending 900 quid a month on the mortgage isn't going to be that much fun is it? Add on the insurances, council tax, bills and the fact most areas are sufferisng falling prices and it sounds like "goodbye disposable income" and "hello negative equity".
Also if you look at the average base rate from the last 25 years it would be around 7.5%
Now I'm guessing you are being offered mortgages at around 5% ?
If your rate went up to 7.5% at 160k your looking at finding another £250 a month.
Just sayin.
+1.... This looks like a disaster waiting to happen. Moreso given you are factoring overtime payments into your calculations. From the limited info you've given you seem to be getting in over your head here...Also if you look at the average base rate from the last 25 years it would be around 7.5%
Now I'm guessing you are being offered mortgages at around 5% ?
If your rate went up to 7.5% at 160k your looking at finding another £250 a month.
Just sayin.
Edited by Tyrion on Tuesday 3rd January 22:33
It's very interesting to hear different opinions, I understand there is a certain amount of risk envolved with any loan. I would be looking at repayments far lower than £900pm and less than 5% and frankly would not be something I would consider but I would agree living within your means is a must! Can I ask how you have calculated these figures? Thanks for your help.
Certainly.
Make this tool your new best friend.
http://www.drcalculator.com/mortgage/uk/
Play with all the functions. Like the overpayments, to see what massive savings can be made by overpaying slightly each month.
Make this tool your new best friend.
http://www.drcalculator.com/mortgage/uk/
Play with all the functions. Like the overpayments, to see what massive savings can be made by overpaying slightly each month.
rufusgti said:
Certainly.
Make this tool your new best friend.
http://www.drcalculator.com/mortgage/uk/
Play with all the functions. Like the overpayments, to see what massive savings can be made by overpaying slightly each month.
That is an excellent toolMake this tool your new best friend.
http://www.drcalculator.com/mortgage/uk/
Play with all the functions. Like the overpayments, to see what massive savings can be made by overpaying slightly each month.
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