General Discussion: mortgage help


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Mckue
Mckue avatar

172 posts since 4/11/12

5 Mar 2013 09:49
sydneyking wrote: there's no talk of the base rate changing until 2016 - 2017 plus recent talk is of introducing a negative base.

How could they make the base rate negative, that would mean you owe less on money you lent, in that case everyone would take out money and let there debts decrease over time?
robii
robii avatar

18857 posts since 8/9/06

5 Mar 2013 10:01
You don't borrow the money direct from the Bank of England though. Lenders add a percentage on top
Mckue
Mckue avatar

172 posts since 4/11/12

5 Mar 2013 10:14
No I know that, but I thought there was a reason it wasn't negative, I'm sure that other banks lend from bank of england or something like that, bare in mind I was last in my economics lessons about 3 years ago so I'm probably making a fool of myself..
suck your mum
suck your mum avatar

2389 posts since 7/4/04

21 Jun 2013 14:51
Anyone on here had any experience with Homeowner Loans?

I'm looking to buy a property but need a loan to finance the refurbishment. Without the loan I couldn't afford to do the work. Are they easy to get?
Luke
Luke avatar

5711 posts since 21/1/03

21 Jun 2013 15:25
Do you mean just a secure loan? Its secured against a property, so shouldn't be too hard to get, just depends on how much.

This site is quite useful, particularly the section on 'How do I find a deposit?' as it has some other options too.

http://www.homebuilding.co.uk/advice/existing-homes/renovating/how-finance-renovation
suck your mum
suck your mum avatar

2389 posts since 7/4/04

21 Jun 2013 15:55
Yeah, the loan would be secured against a property but in the first two months of refurb the property wouldn't be habitable. After those two months the house would be re-wired and a new boiler/central heating installed.

That link is very helpful. Cheers Luke
velvet
velvet avatar

9518 posts since 12/6/06

1 Oct 2013 14:40
for people who have recently purchased - what are the usual fees estate agents charge?

is it 1-3%?

3% seems exessive ie if you buy a £223,000 property you are paying over £6000 in fees?
San
San avatar

10493 posts since 14/11/05

1 Oct 2013 14:41
Why is the estate agent charging you a fee for buying the property?
Shouldn't they be charging the seller??
EVERS
EVERS avatar

8580 posts since 2/7/06

1 Oct 2013 14:44
no fee as buyer
sydneyking
sydneyking avatar

4586 posts since 26/9/09

1 Oct 2013 14:55
Stamp duty to pay if you're buying, 1% on between 125k and 250k, 3% over 250k. Estate agent fee's for sellers are normally 1 - 1.5%
velvet
velvet avatar

9518 posts since 12/6/06

1 Oct 2013 15:00
they are not charging us

i read somewhere that they did charge 1-3% - i have misunderstood

Thanks for confirming
stoney
stoney avatar

17418 posts since 22/1/05

1 Oct 2013 15:42
Put this in another thread, this might be a better place :

Any mortgage advisors here ? Looking at making a purchase (next year) starting to look at finances etc. How much can i borrow ? Is it 4 or 5 times salary ? Also, how is a bonus treated if its not guaranteed ? If its consistent over a year showing on payslips every month, is it taken into account ?

Ta.

EVERS
EVERS avatar

8580 posts since 2/7/06

1 Oct 2013 15:51
4 or 5 x salary - surely not serious? Shocked

from my experience you obv declare bonus but discretional if taken into account depending on lender.
San
San avatar

10493 posts since 14/11/05

1 Oct 2013 16:17
You can get up to 5 times salary but then that is lol.
4 times should be the max.
Think they don't include bonuses but it depends on how your contract is written up.
I seem to remember that Snaye guided you on this matter a few months back (its probably in the life advice thread)
EVERS
EVERS avatar

8580 posts since 2/7/06

1 Oct 2013 16:36
just spoken to someone here and 4 seems to be the norm, however there is an "affordability" blend to the equation.
Hello World
Hello World avatar

12102 posts since 7/3/05

1 Oct 2013 16:36
4x
no bonus, payslips 3 months etc.
pops
pops avatar

4039 posts since 2/9/09

1 Oct 2013 16:43
4x. Fuck that !

I'm looking to remortgage as I've a huge amount of work to do to my house. The additional borrowing would mean our Equity to loan ratio would be a bit less so would mean we potentially get a less preferential rate. However the work we're doing will add a fair amount to the value of the property. Will the lenders take this into account with the mortgage rate offered ?
stoney
stoney avatar

17418 posts since 22/1/05

1 Oct 2013 19:30
EVERS wrote: 4 or 5 x salary - surely not serious? Shocked

from my experience you obv declare bonus but discretional if taken into account depending on lender.

cheers, will check back, position channged, , need to cleard debt though
Hello World
Hello World avatar

12102 posts since 7/3/05

2 Oct 2013 21:32
bonus needs P60's says on the HSBC checklist I am following.

debt is deadly for mortgage applications.
Hello World
Hello World avatar

12102 posts since 7/3/05

3 Oct 2013 12:30
Got unofficial approval today easy street 45% affordability, just to note the limit is 65%.

It is very tough they look at every outgoing through your bank statements DD, SD etc. Everything has to be included even things like netflix. food and transport estimates etc.

I am borrowing 80k less than my 4x ratio for reference, if you are trying to borrow at your 4x max you will struggle unless you can prove you spend no money.