General Discussion: mortgage help


smegy9
smegy9 avatar

277 posts since 3/5/05

9 Feb 2007 22:08
Looking at buying a flat.

At the moment I have about 8 grand for a deposit. Flat I quite like is offers over 96 grand . Question is would I be able to get a mortgage to offer around 103-105 thousand?

My current income is as follows

19000 per anum +
10% profit share bonus



I get a 5% wage rise in march aswell and my profit share in april.

My girlfriend would also be moving in so that would help with the bills.


Currently work at a bank in finance , and studying CIMA examinations.


any one help me in what to do next and what i can afford
misled
misled avatar

4250 posts since 3/1/02

9 Feb 2007 22:22
are you in scotland (judging by the offers over comment?). mortgage at 96 grand minus 8 grand deposit would come in around £500 a month. would your girlfriend put money towards it?
smegy9
smegy9 avatar

277 posts since 3/5/05

9 Feb 2007 22:24
is that interest only?

not really keen interest only


and yes she would put money towards it
Homer
Homer avatar

23926 posts since 8/5/03

9 Feb 2007 22:26
could you afford it alone if she fucks off ?
misled
misled avatar

4250 posts since 3/1/02

9 Feb 2007 22:27
that would be interest and repayment if you get a fixed rate deal. not sure on the exact figures but would be roundabout that. here's a mortgage calculator. some other useful calculators on the site

http://money.guardian.co.uk/calculator/form/0,,603156,00.html
misled
misled avatar

4250 posts since 3/1/02

9 Feb 2007 22:28
Homer wrote: could you afford it alone if she fucks off ?

good point
San
San avatar

10493 posts since 14/11/05

9 Feb 2007 22:30
misled youth wrote:
Homer wrote: could you afford it alone if she fucks off ?

good point
On a £19k salary your take-home amount is around £1150.
£500 on a mortgage plus bills in top wont leave you with much 'self' money so consider carefully.
El Bongo
El Bongo avatar

2994 posts since 15/8/06

9 Feb 2007 22:30
Could someone quickly explain; What is an interest only mortgage? Puzzled Cheers
misled
misled avatar

4250 posts since 3/1/02

9 Feb 2007 22:31
El Bongo wrote: Could someone quickly explain; What is an interest only mortgage? Puzzled Cheers

you don't pay off any of the value of the house - only the interest on the loan. useful way to get on the property ladder if, say, you expect a pay rise in a year or two
El Bongo
El Bongo avatar

2994 posts since 15/8/06

9 Feb 2007 22:32
misled youth wrote:
El Bongo wrote: Could someone quickly explain; What is an interest only mortgage? Puzzled Cheers

you don't pay off any of the value of the house - only the interest on the loan
Whats the point in that? Does'nt that mean you dont own anything of the house? Puzzled
smegy9
smegy9 avatar

277 posts since 3/5/05

9 Feb 2007 22:34
whats your thoughts then acceptable or not?

misled
misled avatar

4250 posts since 3/1/02

9 Feb 2007 22:34
El Bongo wrote:
misled youth wrote:
El Bongo wrote: Could someone quickly explain; What is an interest only mortgage? Puzzled Cheers

you don't pay off any of the value of the house - only the interest on the loan
Whats the point in that? Does'nt that mean you dont own anything of the house? Puzzled

the idea is you start paying off the house in a couple of years when you can start making higher payments. alternatively, you can gamble on the fact that the house will rise in value enough to pay off the loan and any other costs (v. risky IMO)
Essence
Essence avatar

3108 posts since 10/1/05

9 Feb 2007 22:35
El Bongo wrote:
misled youth wrote:
El Bongo wrote: Could someone quickly explain; What is an interest only mortgage? Puzzled Cheers

you don't pay off any of the value of the house - only the interest on the loan
Whats the point in that? Does'nt that mean you dont own anything of the house? Puzzled

Kinda I guess but if it goes it in value, thats yours I guess.
misled
misled avatar

4250 posts since 3/1/02

9 Feb 2007 22:36
smegy9 wrote: whats your thoughts then acceptable or not?

think you'd be pushing it. depends how much your girlfriend puts in but if she isn't a signatory to the mortgage then you could be fucked if she leaves
Essence
Essence avatar

3108 posts since 10/1/05

9 Feb 2007 22:38
If shes living there anyway? without signing? cant she claim anyway if it all goes tits up?
San
San avatar

10493 posts since 14/11/05

9 Feb 2007 22:38
smegy9 wrote: whats your thoughts then acceptable or not?

If she fucks off then you will be struggling.
Around 75% of your salary will be towards living costs and that is a bit too much for a first timer
misled
misled avatar

4250 posts since 3/1/02

9 Feb 2007 22:40
Essence wrote: If shes living there anyway? without signing? cant she claim anyway if it all goes tits up?

yeah after a certain length of time but more to the point, she could just leave without having any legal responsibility and leave him with the full mortgage. either way you wouldn't want to take any chances
SuchAgoodFeeling
SuchAgoodFeeling avatar

434 posts since 8/12/01

9 Feb 2007 22:48
From my experience mortgages can be a bit of a headache but like with everything do your research as different banks offer slightly different deals. In the % they offer, set up fees, fixed/variable rates, close down fees etc etc. I ended up getting the best deal with the bank i have my current account with. As we are planning on moving on in a couple of years the best option for us was a 2 year fixed interest only keeping the payments as low as possible at the moment. As the house needed alot of work and the capital growth should be enough for us to move on to a better property and get another mortgage.

I think generally you should have aprox 10% deposit but obviously the more capital you can raise the better. Contact a few different lenders and they should be able to give you the best advise regarding your income and repayments.

Check out sites such as : https://www.moneysupermarket.com/Mortgages/secure/DoctorLeads.asp?p=0&bbcam;=Adwds%5FMortgages&bbkid;=mortgages&x;
Sure they should be more help! Good luck with it!
El Bongo
El Bongo avatar

2994 posts since 15/8/06

9 Feb 2007 22:50
Thanks, misled youth and Essence.
smegy9
smegy9 avatar

277 posts since 3/5/05

9 Feb 2007 22:56
any ideas on lenders?

and what bid i should put in? its offers over 96