Mortgage advise needed?

[chedinho]

A 100k mortgage will cost you around £700 a month,plus your council tax of say £100 and utility bills. These equate to the region of £900 per month.

Stay in and in six months time you'll have more than your £10k deposit saved.

I pay £584 for a £121k mortgage. How, you ask? Well I had no choice but to pay it over 40 years. Fuck that, you'll be thinking! Box clever though, (OP), and understand your circumstances will change. Get a 40 year mortgage on a 2 or 3 year package, then keep doing that until circumstances change where you can get it over less years. Some might think its madness to get a house over 40 years however I looked at it like this.. 25 years or 40 years from the date you sign, they're both a lifetime away and so for the initial part of getting onto the ladder, it would be worth looking at it and then changing it as each package comes to a close. You could have a £10k a year change in job in the next 10 years, which is then when you change it to lesser years. You're never going to actually own it for at least 25 years anyway so another 15 years on top at the start of the mortgage is no big deal.

im not a money expert but say you had a £100 morgage due on the 30th of the month.you could pay £50 two weeks early,say on the 15th of the month,and the £50 on the 30th which is the actual due date.by doing this you will save a lot of interest and knock years off your morgage over its full term without paying a penny more.

 

[red 2 hats]

Quite a few lenders doing 90% LTV for 1st time buyers.

Check out the following lenders, Abbey (Santander ), Halifax, C & G ( Lloyds ), Nat West.

Good luck, PM me if you need any assistance.

 

[Pigeonho]

I pay £584 for a £121k mortgage. How, you ask? Well I had no choice but to pay it over 40 years. Fuck that, you'll be thinking! Box clever though, (OP), and understand your circumstances will change. Get a 40 year mortgage on a 2 or 3 year package, then keep doing that until circumstances change where you can get it over less years. Some might think its madness to get a house over 40 years however I looked at it like this.. 25 years or 40 years from the date you sign, they're both a lifetime away and so for the initial part of getting onto the ladder, it would be worth looking at it and then changing it as each package comes to a close. You could have a £10k a year change in job in the next 10 years, which is then when you change it to lesser years. You're never going to actually own it for at least 25 years anyway so another 15 years on top at the start of the mortgage is no big deal.

im not a money expert but say you had a £100 morgage due on the 30th of the month.you could pay £50 two weeks early,say on the 15th of the month,and the £50 on the 30th which is the actual due date.by doing this you will save a lot of interest and knock years off your morgage over its full term without paying a penny more.

Sorry mate, are you asking me if thats possible or advising me to look into it? As far as i'm aware a mortgage is a fixed payment each month, fixed as in a direct debit I mean. I have never heard you can split payments throughout the month....

 

[r.soleofsalford]

I am looking to buy my first house and have found a lovely place listed at £110k I reckon they would take £100-£105k for it. My only problem is that I have only got about £5k saved up for the deposit. Most mortgage's require 10% minimum deposit!

Can anyone advise if they know of anywhere offering less than 10% or when the deposit thresholds will drop?

i`ve read that some forecasters expect house prices to drop again. if possible it might be worth trying to save up the extra 5,000 and see where the market is when you have the 10,000

 

[IFeedGoats]

A 100k mortgage will cost you around £700 a month,plus your council tax of say £100 and utility bills. These equate to the region of £900 per month.

Stay in and in six months time you'll have more than your £10k deposit saved.

I pay £584 for a £121k mortgage. How, you ask? Well I had no choice but to pay it over 40 years. Fuck that, you'll be thinking! Box clever though, (OP), and understand your circumstances will change. Get a 40 year mortgage on a 2 or 3 year package, then keep doing that until circumstances change where you can get it over less years. Some might think its madness to get a house over 40 years however I looked at it like this.. 25 years or 40 years from the date you sign, they're both a lifetime away and so for the initial part of getting onto the ladder, it would be worth looking at it and then changing it as each package comes to a close. You could have a £10k a year change in job in the next 10 years, which is then when you change it to lesser years. You're never going to actually own it for at least 25 years anyway so another 15 years on top at the start of the mortgage is no big deal.

Something to point out though is that doing it this way is that you will pay more interest in the long run. Your capital will only be reduced by a small amount in the first 10-15 years or so when you come to reduce the years you will still have a mortgage to repay not far off what the original was, an online calculator will give you the figures.

Saying this, circumstances are circumstances and sometimes you need to take this hit to get where you want to be. And if you are not paying too much more than what you would pay rent for a similar property there is no great loss.

 

[Pigeonho]

I pay £584 for a £121k mortgage. How, you ask? Well I had no choice but to pay it over 40 years. Fuck that, you'll be thinking! Box clever though, (OP), and understand your circumstances will change. Get a 40 year mortgage on a 2 or 3 year package, then keep doing that until circumstances change where you can get it over less years. Some might think its madness to get a house over 40 years however I looked at it like this.. 25 years or 40 years from the date you sign, they're both a lifetime away and so for the initial part of getting onto the ladder, it would be worth looking at it and then changing it as each package comes to a close. You could have a £10k a year change in job in the next 10 years, which is then when you change it to lesser years. You're never going to actually own it for at least 25 years anyway so another 15 years on top at the start of the mortgage is no big deal.

Something to point out though is that doing it this way is that you will pay more interest in the long run. Your capital will only be reduced by a small amount in the first 10-15 years or so when you come to reduce the years you will still have a mortgage to repay not far off what the original was, an online calculator will give you the figures.

Saying this, circumstances are circumstances and sometimes you need to take this hit to get where you want to be. And if you are not paying too much more than what you would pay rent for a similar property there is no great loss.

Precisely this mate. I live in a regular 3 bed Semi in North Manc. Got a good sized garden and front driveway, nothing spectacular, but not bobbins either. To rent a similar property would be a good £150 more each month. We, (me and the ex), bought it because my bro owned it and was moving down south so offered it us with £15k knocked off for a quick sale. Whilst skinting us it was too much of an opportunity to turn down, what with us having a couple of bin lids who needed a room each. 40 years was our only option in the short term. Its all good though cos i'm banking on a lotto win. :-)

 

[chedinho]

im not a money expert but say you had a £100 morgage due on the 30th of the month.you could pay £50 two weeks early,say on the 15th of the month,and the £50 on the 30th which is the actual due date.by doing this you will save a lot of interest and knock years off your morgage over its full term without paying a penny more.

Sorry mate, are you asking me if thats possible or advising me to look into it? As far as i'm aware a mortgage is a fixed payment each month, fixed as in a direct debit I mean. I have never heard you can split payments throughout the month....

it is possible.you would have to make an appointment with the bank and come to an arrangement of how it will be paid.on a 25yr morgage you would pay it off in about 20yrs i think.

 

[Pigeonho]

Sorry mate, are you asking me if thats possible or advising me to look into it? As far as i'm aware a mortgage is a fixed payment each month, fixed as in a direct debit I mean. I have never heard you can split payments throughout the month....

it is possible.you would have to make an appointment with the bank and come to an arrangement of how it will be paid.on a 25yr morgage you would pay it off in about 20yrs i think.

Hmmm, will be remortgaging with enough for an extension within the next 2 years with my mrs, (mad bastard), so will defo look into this. Nice one mate.

 

[IFeedGoats]

Something to point out though is that doing it this way is that you will pay more interest in the long run. Your capital will only be reduced by a small amount in the first 10-15 years or so when you come to reduce the years you will still have a mortgage to repay not far off what the original was, an online calculator will give you the figures.

Saying this, circumstances are circumstances and sometimes you need to take this hit to get where you want to be. And if you are not paying too much more than what you would pay rent for a similar property there is no great loss.

Precisely this mate. I live in a regular 3 bed Semi in North Manc. Got a good sized garden and front driveway, nothing spectacular, but not bobbins either. To rent a similar property would be a good £150 more each month. We, (me and the ex), bought it because my bro owned it and was moving down south so offered it us with £15k knocked off for a quick sale. Whilst skinting us it was too much of an opportunity to turn down, what with us having a couple of bin lids who needed a room each. 40 years was our only option in the short term. Its all good though cos i'm banking on a lotto win. :-)

Sounds like you got a pretty good deal there mate, like you say this is a perfect example where taking a hit in the short term will pay dividends in the future. Lets not forget also you get a home for your family and not just a stepping stone to the home which is the most important thing.<br /><br />-- Wed Mar 24, 2010 11:08 am --<br /><br />

Sorry mate, are you asking me if thats possible or advising me to look into it? As far as i'm aware a mortgage is a fixed payment each month, fixed as in a direct debit I mean. I have never heard you can split payments throughout the month....

it is possible.you would have to make an appointment with the bank and come to an arrangement of how it will be paid.on a 25yr morgage you would pay it off in about 20yrs i think.

Depends how the interest is calculated It's been a long time (14yrs) since I was giving mortgage advise and at the time there were only a few mortgage companies that calculated their interest on a daily basis (it was called the australian calculation or something at the RBS and they probably all do it now) which is where you would reap the most reward paying split payments.

 

[chedinho]

Precisely this mate. I live in a regular 3 bed Semi in North Manc. Got a good sized garden and front driveway, nothing spectacular, but not bobbins either. To rent a similar property would be a good £150 more each month. We, (me and the ex), bought it because my bro owned it and was moving down south so offered it us with £15k knocked off for a quick sale. Whilst skinting us it was too much of an opportunity to turn down, what with us having a couple of bin lids who needed a room each. 40 years was our only option in the short term. Its all good though cos i'm banking on a lotto win. :-)

Sounds like you got a pretty good deal there mate, like you say this is a perfect example where taking a hit in the short term will pay dividends in the future. Lets not forget also you get a home for your family and not just a stepping stone to the home which is the most important thing.

-- Wed Mar 24, 2010 11:08 am --

it is possible.you would have to make an appointment with the bank and come to an arrangement of how it will be paid.on a 25yr morgage you would pay it off in about 20yrs i think.

Depends how the interest is calculated It's been a long time (14yrs) since I was giving mortgage advise and at the time there were only a few mortgage companies that calculated their interest on a daily basis (it was called the australian calculation or something at the RBS and they probably all do it now) which is where you would reap the most reward paying split payments.

this is what i mean.as far as im aware,an aussie bank took control of yorkshire bank and brought this option to england.before there was only 1 or 2 ways to pay for your morgage,capital or endowment and they were set in stone,suited to the banks and not to the customer.im out of my depth now so,hopefully,ifeedthegoats can point you in the right direction.

 

[IFeedGoats]

Sounds like you got a pretty good deal there mate, like you say this is a perfect example where taking a hit in the short term will pay dividends in the future. Lets not forget also you get a home for your family and not just a stepping stone to the home which is the most important thing.

-- Wed Mar 24, 2010 11:08 am --




Depends how the interest is calculated It's been a long time (14yrs) since I was giving mortgage advise and at the time there were only a few mortgage companies that calculated their interest on a daily basis (it was called the australian calculation or something at the RBS and they probably all do it now) which is where you would reap the most reward paying split payments.

this is what i mean.as far as im aware,an aussie bank took control of yorkshire bank and brought this option to england.before there was only 1 or 2 ways to pay for your morgage,capital or endowment and they were set in stone,suited to the banks and not to the customer.im out of my depth now so,hopefully,ifeedthegoats can point you in the right direction.

Probably best getting professional advice, there is is a IFA on here I'll PM the OP his username I've already let the IFA know about this thread though.

 

[The Fat el Hombre]

I'd defo sit tight and save up if I were you, well actually I'm in a similar situation to you and that's what I'm doing.

Might be worth a look at this bank account if you're saving:

http://www.santander.co.uk/csgs/Sat..._GB&pagename=Abbeycom/Page/WC_ACOM_TemplateB2

It's got 5% which is about as good as you'll get and no minimum term so if you wanna buy a house in 6 months you can take it out and get your interest. You have to put between 100 and 300 in evry month but you can initially deposit up to 5k, so you can put your current 5k deposit in and earn 5% on that straight away

You have to be under 36 and a FTB to qualify (which as far as I'm aware you are) and the only real catch is that you have to have a mortgage interview with them before you close the account - you don't have to take a mortgage out with them, just go for the interview which can be pretty trivial (some people get away with not having one apparently)

Be careful though with buying a gaff as the state of the country and housing market is precarious at the moment and it's the biggest purchase you'll probably ever make so make sure you get it right.

 

[Ja Salford Blue]

Just a quick update, I have found a few 10% depost Mortages with the following all for FTB

Natwest 4.69%, Santander 4.49% (2 year tracker) with £0 arrangement fee, this would give me monthy repayments of about £470

I have found 1 Mortgage which only requires a 5% deposit with the Yorkshire Bank but they want an eye watering 6.99% fixed for 3 years with a £599 arrangement fee, this would give monthly repayments of about £640 (I obviously wont be touching that with a barge pole!)

Thanks again for all the advice guys, I will respond to the PM's later today when I get a bit of time.

 

[Scrabster Six]

The first thing you have to weigh up is , would it be possible to pay the monthly payments if a mortgage product is out there considering that interest rates will eventually rise at some point. Whether to go Capital and interest or interest only but obviously with interest only you would need another repayment vehicle behind you like an endowment policy, ISA or even stocks and shares. Dont get it tied in to some silly fixed rate is there a possibility you could offer a collateral charge by way of another property to lever your negotiation?

 

[salfordtrueblue]

This new government initiative regarding the stamp duty should help you out mate.

 

[law74]

As the OP is currently living at home, what sort of a household does he currently live in, i.e. can he have his mates round for a session when he wants, or do his parents object to drinking in the house?
How often does he go out on the town, on the beer, clubbing etc? Is he willing to give this up to be able to sit in his own pad relaxing with a few mates (or entertaining a female with a home cooked meal and a glass of red)?
I bought my own pad about 11 - 12 years ago and it needed a hell of a lot of work done to it, stayed at home while i got the major works carried out (new bathroom, kitchen, rewired top to bottom etc), once they were done I started decorating and got the kitchen finished, bathroom finished, siting room and my bedroom done and moved in, gradually then getting the rest of the house and gardens front and back sorted out. But while before i had the house i would have been down the boozer 2 or 3 nights per week and over to watch the blues 15 - 20 times a season, i am lucky to get three or four times a season now, and almost all my drinking is done at home due to cost restraints.
Buying your first house is a very big step but can be the best thing you ever do on your own, but make sure you are aware of the efect it can have on your social life.

 

[tweetstreet]

I'm in a similar position but will have closer to 15% for a £110k house by the end of June.

What i'm wandering though is this: The house i'm interested in isn't finished. The inside still needs flooring, stairs and some wiring done. I'm unsure though whether a bank will give a mortgage on an unfinished house though. Are they reluctant to do this?

 

[yayas trusty right foot]

If you are desperate to buy DO NOT go for any of those trackers rates you mentioned, when base rate increase to normal levels you will end up paying a bomb in monthly payments..

Why not be patient, stay at home and save up a bigger deposit..

House prices will not be going up for a long long time..<br /><br />-- Wed Mar 24, 2010 11:58 pm --<br /><br />

I'm in a similar position but will have closer to 15% for a £110k house by the end of June.

What i'm wandering though is this: The house i'm interested in isn't finished. The inside still needs flooring, stairs and some wiring done. I'm unsure though whether a bank will give a mortgage on an unfinished house though. Are they reluctant to do this?

It will probabily need stairs and a kitchen to make it mortgageable..

 

[Blue Streak]

Just to get a feel I have my eye on a three bedroom end terrace property thats in a half decent area for offers over £59,950, also a similar two bedroom mid terrace for the same price. I'm assuming the reason the three bedroom is the same price is that it has part of the West Coast Railway line between Warrington & Wigan running past the back of it?

Anyway before I explore the options any further can anyone give me an idea of what sort of resonable deposit may be required on such a priced property in order to have a resonably sustainble/lowish mortgage?

Just some basic figures would be appreciated first and foremost if anyone has any idea?

 

[KpxSte]

This new government initiative regarding the stamp duty should help you out mate.

Trying to score political points?

In fact, for houses up to £125,000 the rate was already zero so the new government initiative is irrelevant in this case. A decent fair "working class" government would have raised the threshold years ago when average house prices doubled.