slowpoke

me and the missus are thinking of buying our first house, weve been looking at renting somewhere for say 240 each PCM

we doubt we will get a mortgage that cheap for say 90k even over 35 yrs

how do they work out how much they will lend you ? is it annual joint income minus your outgoings ?

or is it just annual joint earnings ?

we reckon we will have about 900 to 1k spare a month to pay for everything

matt

Cawood

just go in n ask them

slowpoke

i would do but i dont want them to tell me to fook off cos im skint lol

i dont take rejection well pmsl

©hatter Box

you always get fucked on the deal with them

PaulCossie

try this and put in some details, might give you a better idea


http://www.moneysupermarket.com/

stonehavencossie

If you dont have a big or any deposit then northern rock are excellent for first time buyer. You can get up to 125%.

A 90k mortgage your prob looking at circa £600 a month for the mortgage alone

slowpoke

what even over 35 yrs ????

Martinshuter

matt,

me and the mrs have just brought a house together. the mortgage we have is a 90% mortgage. We used a 10% deposit. Our mortgage is with C&G and is over 25 years. we pay, £325 each a month for the mortgage. we have budjeted 600 a month for everything including food.

dojj

iTrader: (3)

25 years

they will gives you (or they usd to) 3 times your salalary before overtiems or 2/5 times combined salalry of you and your other half, agan before ovetrtime because thats not garnateed

so, if you eern £15k and your mrs eerns £15k you can get a mortaeg of £75 but if you were do to it on your own it would only reah to £45

some places will ofeer you a full £90 if you say you will have a combined income of more and it's onlt 15 k you would be short so go fo r the 25 year one

if you area a first timerer you can get betetr rates, i'm on a 4,29 rate which will go up to 6.5 after 2 years in thne i will hacnge companies to get a bttere rate

get a long fied rate at lowest prices ecause then you will be better off in the short term

Smiggy

If you can buy, I know it's getting harder down englandshire for first time buyers to get on the ladder, but all you'll be doing by renting will be paying someone elses mortgage.

One of my mates does a bit of financial advising and he says that house prices are rising more per month than what the average person can save. Therefore the longer you leave it the more expensive it will work out for you.

90k will cost around £600 over 25 years. A lot of these providers will give you whatever you need but be wary as to what you can actually afford.

Either that or move up here where houses don't cost as much.

slowpoke

any idea what 90k is over 35 yrs ?

its not looking good this lol

matt

Mr Brannen

Mine on £112,000, is £634.00 per month

dojj

iTrader: (3)

2011 hourses in londond average will be 400k

alistairolsen

my 25 year 90% lend mortgage on a 90k property (11k deposit) is £520 a month. The interest rate they charge you goes up if you want to borrow 100% of property value, or more.

The problem up here is finding a property where the final sale price accurately reflects the valuation, offering 20% over valuation isnt abnormal, with associated rise in necessary deposit.

Christian and Beccy

iTrader: (14)

Our first-time-buyers mortgage was £128,000, interest only over 25 years and was costing us £600 per month. We paid 5% deposit (£6k).

It's not easy, we jumped from £280 per month rent to that mortgage. You really have got to do it sooner or later and the longer you leave it the worse it will get.

3 Years down the line, our bungalow is worth considerably more, meaning that we only have to borrow 70% of its value, which makes lenders more keen on you. We left behind a rate of 6% on our old C&G mortgage and are currently paying 4.47%!!!

Toe Knee

iTrader: (2)

You need proper advice mate as it'll vary from every lender!!!


Me and the gf have taken out a 153k mortgage (house is £171.500 and ive put down a 17k deposit roughly) and its a bout £650 PM interest only fixed for 2yrs but goes up to £900 after then, but by then we will shop about and re-mortgage to repayment and try to get a better deal!!

We got ours thru RBS with a silly rate x our saleries, something like 5 1/2 times!!

Clare

It now varys so much between lenders, I think some were advertising lending 5 x salary last month which is crazy imo.

Pop into your local estate agents and ask for an appointment with their Mortgage Advisor. They will sit you down and talk you through everything you need to know.

It´ll seem like a minefield to start with but dont panic, it does all become much easier to understand in time.

I use Countrywide Mortgage Brokers (based in most Taylors Estate Agents) as they are independant and have a good range of products to offer from all different types of Lenders.

dvid

Our first mortgage is £157,000 over 35 years which is about £758 a month and that was with a £20K deposit

RichardPON

If banks weren't lending that much, most people wouldn't be able to buy a property in London.

Clare

I appreciate that Rich, but my honest opinion is that increasing borrowing does not solve the long term problem.
But starting that discussion would be opening a big can of worms for debate and argument................ and I´ve got work to do (for a change) lol

danneth

i got my first mortgage this year

was for 115k from nothern rock no deposit and thats £720 a month over 35 years

Doh

a 90k mortgage at 5.5% over 35 years will work out at £487.31 per month (repayment)

then there could be fees to arrange the loan, but you might get a better deal on the interest rate i just choose an average figure

i'm currently on 6.55% interest in a 125k loan over 17 years (u do the math)

Thrush

iTrader: (1)

I'm just about to get into all this myself Scary shit....

I don't know a lot, but for what it's worth, here's what I found out.

I wanted to borrow £80k, over 30yrs. My mortgage bloke found me a deal with Nationwide, that on an £80k lend, would see me paying £427 per month on a repayment mortgage (I want repayment, don't wanna string it out paying interest only)

Cos the gaff is sharewd ownership (part rent, part buy) I can't get 100% mortgage on it, so have to kick in £4k of my own as deposit, so am now borrowing £76k. Same deal via Nationwide sees repayment per month being £406 per month. 30yr term fixed for 2yrs @ 4.97%

Don't forget tho, that you will need life insurance and/or critical illness insurance in order to get the mortgage (or if you want neither, you have to have a named guarantor(sp) in case you peg it, someone has to pay it back.

Cos I am on my own, no dependants and no other person buying with me, I don't need life cover, so just went with critical illness and personal payment protection (in case I get involved in a car accident or whatever and can't work) This adds another £40 per month on that mortgage figure. Then you have home + contents insurance (bare minimum you need home only, incase your house falls down). I have contents only as the rent portion of my (soon to be) house covers the buildings insurance. But it's about £30 a month or something for both, or about £20 for building only (obviously depends on the property)

All in all, I am looking at £455 per month for mortgage, insurance and critical illness, and for me another £154 p/m on rent = £609. plus council tax (for me, £90), water (£20) gas n leccy (guestimate about £50 p/m for both, and all the other shit (phone = £11, net = £15, mobile = £30, TV lisence = £10, total = £226, call it £250 for allowance) I got about £850/£900 there per month, before food, smokes, going out for a beer, shit for house etc.....

Alongside that, you need money behind you for fee's (they all vary, so below are what mine is outlaid at)

Mortgage arrangement fee - can be anything from £0 (they add it to your interest) to £600! Mines £399
Survey (for mortgage lender - £325
Solictors - my solicitors fee (for them) is £525, and on top of that you will have a mortgage set up fee (£25) Stamp Duty Land Tax fee (£50), Searches (£223), Land Registery Fee (£150), Money Transmission Fee (£39.95), Archive Fee (£32.95), Addional Searches (£15), VAT on their fee's (£105) comes to £1168!!!!

Depending on house price, you might have to pay stamp duty (1% on property over £120,000, so for a £125,000 house, the government will take £1250 off you!!!! )

Dan Cossie

So your Paying back £302000 WTF??????

dojj

iTrader: (3)

i'm borrowing £180k over 25 years and paying back just over 400k

and don't talk to me about stamp duty, i had to fork out almost £16k in fees, and with the fiddly git in the tresury wanting 3% of the 280k the hwouse was worth, it was over £8k in stamp duty alone

dojj

iTrader: (3)

top explanation thush

Thrush

iTrader: (1)

Was that about right then? Still all a bit new to me

danneth

nah it was 200 and summert k not in the 300's could be 30 years dunno i let the girlfriend sort it will be changing it after 2 years anyway just to get us started

dojj

iTrader: (3)

you hit it spot on mate
a lot of people get carried away with just the figure they have to pay back without taking into account how long it's going to be paid for and all the other things that need to be factored into the costing

it all soon adds up and if you are only thinking you are going to be paying a few hundred quid for the mortgage, the other fees come as a bit of a shock

Thrush

iTrader: (1)

And it's scaring the shit out of me too Dojj - I, for the past number of years, have been paying my old dear £200 a month for "rent" and £30 to T-mobile for my phonebill. Other than that, my money is mine to do with as a choose. Buy a car? No worries. Go out on the lash? Sure....

Now tho, I have to spend out minimum £900-£1000 per month and thats BEFORE food n shit!!!!!!

Scary stuff!!!!!

dojj

iTrader: (3)

it's not that bad
just remember that you'll be doning the same for the next part of your life (ie most of the remaining bit) and it's a simple thing to not go out, not spend any money, eat cheap food, smoke cheep fags, stay in with a can rather than go to the pub etc etc

save a few quid and go out once a month and that way you can still hook up with your mates without loosing touch either

MWF

The banks have recently started to take mortgages more seriously and there are some competative deals out there.

Firstly if you are a graduate a 100% mortgage is no problem with no HLCs or MIGs that used to penalise people.

Secondly better mortgage lenders are now looking at peoples overall income and outgoings and the attiquated old sallary multiplier is rightfully dieing out. With HSBC we could make payments up to 60% of our disposable income. So if you have £1000 left over a month you can make payments up to £600 a month.

Thirdly some lenders now offer home start mortgages on which you pay interest only for a few years and therefore lower initial payments which works out good for those paying off debt or still in part time education. You can also overpay on these up to 25% if you can afford to, so you can start repaying the capital early.

Last of all be aware that mortgage payments are just part of the cost, you will have to pay your soliceters conveyencing charge, plus any stamp duty and you'll need building and life insurance and it's wise to get contents insurance. Be aware there are some good deals out there.

Don't believe the BS that's out there, if you are sensible with your money you can do it. House prices are a problem for first time buyers but not as big a problem as the amount of debt most first time buyers have, this is one of the real issues people have getting on the ladder.

Thrush

iTrader: (1)

It may be a simple thing, but thats no real quality of life is it? Stay in, don't drink, don't eat, don't smoke, don't do anything - just to pay for a house......

Cos if it gets that bad, I will sell it and either downsize (if poss) or simply move back home - I would rather have a better quality of life than suffer for it but have my own house......

dojj

iTrader: (3)

but you have to get cost cutting in the first years to be able to know what you can and can't afford, if you were to carry on as you were and be £300 short of your payments for the moneht the bank would soon have you out on your arse

as time goes one you will be able to see what you can and can't afford, and, in my case, it's meant cutting back on what i spend on my cars and my comics, not a rgeat deal but other things like going shopping and buying cheaper food or because it's on offer means that the ew quid i save i can spend on my son rather than ploughing it back in into the car, which is never going to make it's money back

the other great thing is that with the dawn of the internet era you can buy stuff online much cheaper than you would on the highstreet, and ebay, for all it's faults, it still a good place to pick up bargains

once tyou have wieghed up your disposabale income you can then see what you can save a few quid from, i know my disposable has gone down a bit but i still have the thick end of about £1800 a month after paying the mortgage to play with and most of that get's banked because everything is budgeted, right down to the penny if i can be because i'm like that

if you consider that your disposable income is £1000 a month after the mortage and you factor in that the rest of the cost of living is going to be £200 a week, you have £200 left over and so you save that for one month, then, the next month you know what you've had left over and if it's more or less you can budget accordingly

i never spend more than the last months disposable income after everything has been paid for so even if i found myself with no money this month i'd still have last months to fall back on and a month worth of saving for the next month

balancing the books is easy if you have plenty to start with, but you've also got to put money aside for a rainy day and the what if moments, i may be preching to the converted becaus you seem to have your figures all worked out, but you should always live within your means as borrowing from other people is only going to leave you skint

i can only speak for myself in this instance but i've learnt by the mistakes of others, i still kick myself for not buying a house almost 12 years ago which has now almost quadrupled in vaule

Thrush

iTrader: (1)

Well you're lucky then Dojj - cos the mortgage/rent/insurances, plus council tax, water rates, phone line, TV lisence, mobile phone, internet etc is gonna cost roughly £800 per month, and thats BEFORE any shopping, smokes, and more importantly; leccy and gas.... And since I am only guaranteed a basic (net) of £1100 (not including any bonus I earn) that cuts it VERY fine for living now doesn't it.....

dojj

iTrader: (3)

all that means is that you will have to work harder for your bonus, and make that count

it's not as bad as it sounds first off, if you are getting a 2 bed place you can always rent one out to help you

Thrush

iTrader: (1)

Yeah I know I do, but I was just thinking out loud that it seems a bit daft to move out and take on a property, if life is gonna become complete shite (ie, become a hermit and not eat, drink, smoke or regulary see people kinda thing)

And I can't rent anything out, as one of the main rules from the housing company that I am buying through. And even if that wasn't a rule I wouldn't rent out anyway as it defeats the whole purpous of trying to buy a place on my own : cos I really want to LIVE on my own! (well, maybe get a cat or something)

dojj

iTrader: (3)

getting a pet costs money

but based on what you are saying, you have £300 to survive the month after the mortgage, so now you need to make that £300 last the longest you can, and any extra money you have you can spend as free money

it's all about how you manage your money and if you are living beyond your means you'll son start to feel the pinch

while we are discussing all of this, have you actually moved in or are you having second thoughts about the matter?

if you are having second thoughts then don't, go for it and see what you can make of it, if it doesn't work out you can always sell up and tr later on, but at least you'll have the basics worked out and know what you want to go for next time

it's a good little investment at the moment and if it all falls apart around your ankles you can always move back in with the folks can't you

graham c

iTrader: (5)

i,ve just got one 4 125,000 and its 703 an mounth

COMEDY DAN

Abbey National are lending using this criteria.


Lenders usually lend against multiples of your income minus your current debt, cards, loans based over a 12 month period.

If your salary is 25k and your current debt outlay for a year is £3000 then their base figure for your salary will be £22K!

At the end of the day its all about affordabilty.

Watch out for low interest rates as many incur high arrangement fees of as much as 1.5% of the total loan amount.

So in 2 years when you can remortgage and change the criteria of the lend, then you wont really have saved any money in the majority of cases.