First Time Mortgage
Discussion
When you say no real debt, what do you mean by that?
My girlfriend and I got a mortgage for £117,250 with no problems. Joint income of £42,000(ish).
Have a bit of debt though (£500 a month for me, £120 for her).
There are some mortgage calculators out there than can give you an idea.
Oh and Sarnie on here!
My girlfriend and I got a mortgage for £117,250 with no problems. Joint income of £42,000(ish).
Have a bit of debt though (£500 a month for me, £120 for her).
There are some mortgage calculators out there than can give you an idea.
Oh and Sarnie on here!
Firstly you’re doing a great thing, enjoy the process.
However you may struggle with £8k savings, you typically need 10% of the property value as a deposit, unless you go down the HTB route (then you only need 5%). Your earnings may be little shy of where you need to be for a 90% mortgage too.
Speak to a broker as a first step. Best of luck.
However you may struggle with £8k savings, you typically need 10% of the property value as a deposit, unless you go down the HTB route (then you only need 5%). Your earnings may be little shy of where you need to be for a 90% mortgage too.
Speak to a broker as a first step. Best of luck.
As a rough guide, banks will lend approx x4.5 you salary, so for you, that's £162k.
If you borrowed £162k on a 90% of value mortgage, then you'll need an £18k deposit, and could get yourself an £180k house.
My advice, clear any debts, save another £10k.
Or consider shared ownership to get on the ladder, but read up on it first to see if it's for you.
If you borrowed £162k on a 90% of value mortgage, then you'll need an £18k deposit, and could get yourself an £180k house.
My advice, clear any debts, save another £10k.
Or consider shared ownership to get on the ladder, but read up on it first to see if it's for you.
You should consider putting your savings into a Lifetime Cash ISA if the cash is to be used towards a house purchase.
If you put in £4k a year (the max) then the Government put in another £1k to make it up to £5k.
If you were to buy in (say) late May next year that gives you time to put in this years allowance and next years (after 6th April) and so turn your £8k into £10k.
There are some rules.
If you end up not using the money for a house purchase (or retirement) then you lose the extract Gov contributions.
You need to be below 40 years old.
https://www.gov.uk/lifetime-isa
ETA I hadn't seen the age of the original post but I'll leave my response up in case it helps.
If you put in £4k a year (the max) then the Government put in another £1k to make it up to £5k.
If you were to buy in (say) late May next year that gives you time to put in this years allowance and next years (after 6th April) and so turn your £8k into £10k.
There are some rules.
If you end up not using the money for a house purchase (or retirement) then you lose the extract Gov contributions.
You need to be below 40 years old.
https://www.gov.uk/lifetime-isa
ETA I hadn't seen the age of the original post but I'll leave my response up in case it helps.
NordicCrankShaft said:
I am currently putting the maximum amount of money into a help to buy Isa so not sure if that limits what else I can do?
It does. I believe you can hold both but you can only get the government bonus through one of them when you buy. The LISA has larger limits though so you can get more tax free. I'm not sure but I think HTB ISA you can only get £600 a year free as opposed to the £1k on LISA. You'd need to confirm that though.NordicCrankShaft said:
I remembered yesterday that I made this.
Where am I likely to stand now with all of this post Covid.
Mortgage criteria is a little volatile at the moment, but hoping and expecting it to calm down soon.Where am I likely to stand now with all of this post Covid.
Currently no 95% LTV mortgages available and very little in the way of 90% LTV. Although the availability of 90% LTV is changing each week. Most brokers expect 90% LTV to return to being easily available.
It does appear that the lack of 90% LTV is not due to lender confidence in the marker, but their ability to process mortgages with reduced staff due to social distancing measures. Although it could become an issue for the market if there less first-time buyers able to enter the market.
The problem is that the lenders that have brought back 90% LTV have been swamped and then had to withdraw due to capacity.
As for 95%, not expecting them to be available again anytime soon.
NordicCrankShaft said:
I remembered yesterday that I made this.
Where am I likely to stand now with all of this post Covid, job is safe after initial talks of possible redundancy.
Now have £11k in savings, with 2 credit cards with a 0 balance (will close one of them over the next week or so) and a loan that cost's me £200 a month that I used for a car. Other than that standard phone contract which I've just renewed and is less per month.
Have given the Help to buy serious consideration too.
Just a little thing outside of mortgage advice itself. Don't bother closing a credit card down as credit card utilisation alogthirims it's always good to have a high amount of available credit and not utilising any of it.Where am I likely to stand now with all of this post Covid, job is safe after initial talks of possible redundancy.
Now have £11k in savings, with 2 credit cards with a 0 balance (will close one of them over the next week or so) and a loan that cost's me £200 a month that I used for a car. Other than that standard phone contract which I've just renewed and is less per month.
Have given the Help to buy serious consideration too.
For the mortgage, my biggest concern would be banks wanting larger than normal deposits currently. I believe 85% LTV in the current max LTV (could stand to be corrected as only read in passing). Not sure if help to buy 20% negates this if you were looking at new builds.
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