Mortgages....

[Dappa D]

me and the mrs will be seeing a financial advisor next month to see what our options are, however in the meantime I thought id ask the .org on their views..so here goes...

current position is my mrs has the mortgage all in her name and i juat pay her half of it each month.

we are looking to sell current property shortly, get a joint mortgage and buy our next home.

I have never had a mortgage.

would it be better to get me onto her existing mortgage now and then go for the next one as both existing customers...or wait and get the next mortgage together and then adding me as a sort of first time buyer....

we have 10% deposit on a £150k house.

any views? experience?? much appreciated as always

Dappa

[gettin2dizzy]

Providing you have a decent credit record, I'd definitely get a joint mortgage. A 10% deposit will get you an alright interest rate, but Saving for 15% could make all the difference.

I'm waiting another 6 months to see how the market plays out. If you can sell now, and rent whilst you save for a larger deposit whilst watching the market I think you'd be better off.

Being a FTB makes no difference when you have a solid credit history and a safe job.

[Thingus]

No chain would be a huge bonus too as people who wanna sell can't wait to get rid and selling your home within a month or so if you see a nice one could be tricky.
I don't know from experience but i have a few friends who are getting a lot of interest as chain free buyers. (and yeah the deposit makes the difference)

[kwak zzr]

its a buyers market just ask Ed he deals with house sales me thinks.

[Biker Biggles]

First question must be can you sell your current place for anything like as much as you thought?All calculations will have to be based on that figure.

[MR UKI (1)]

You might struggle with the 10% deposit, it's 15% at places now and most want 20%. Our lending policy changes on Monday and our minimum is 20%, but the lower rate products require 40%.

[mattSV]

You might struggle with the 10% deposit, it's 15% at places now and most want 20%. Our lending policy changes on Monday and our minimum is 20%, but the lower rate products require 40%.

This is what has stuffed the market a bit. 90% LTV used to be 'normal', and would get a good rate, these days there are far few lenders offering 90% - and those that are, are charging a higher rate.

As a mortgage company, we deal with a lot of intermediaries (i.e. mortgage brokers), some who have been almost in tears as they just cannot get the deals any more.

[MR UKI (1)]

This is what has stuffed the market a bit. 90% LTV used to be 'normal', and would get a good rate, these days there are far few lenders offering 90% - and those that are, are charging a higher rate.

As a mortgage company, we deal with a lot of intermediaries (i.e. mortgage brokers), some who have been almost in tears as they just cannot get the deals any more.

Agree there. Spoken to a couple of friends this week who are relatively young so had to borrow at 90-95% when they got their first mortgages and whose schemes have ended recently. They are now unable to get a new product as the maximum loan to value figures have been reduced. Their only saving grace is that the SVR is lower than any product rates.

[gettin2dizzy]

I know of people who have got 10% deposit deals, but they're not great (although not terrible), and you do need to be in a reliable career.

[Biker Biggles]

Yes but------
One of the big reasons we are in such economic **** is that lenders did not insist on healthy LTVs and now have "toxic" losses on their books.A hefty deposit requirement may be a PIA but should be a regulatory requirement IMO.

[454697819]

makes little odds but just a wording of warning there are only 10 companies still doing 90% mortgages...

Just been screwed myself...

[Jools'SV Now]

re your original question: is it worth going on the current mtg?

probably not. it won't make much if any difference when you try to move and it'll cost about £300 in legal fees to sort the transfer of equity paperwork.

and as others have said, try to get 15% or you'll be paying circa 7%.

good luck with the sale

[Ed]

re your original question: is it worth going on the current mtg?

probably not. it won't make much if any difference when you try to move and it'll cost about £300 in legal fees to sort the transfer of equity paperwork.

and as others have said, try to get 15% or you'll be paying circa 7%.

good luck with the sale

Unless the broker advises that it's sensible because of a saving on the loan rate then Jools is right - £300 in fees is about right, plus the VAT, plus the Land Registry fee - £40. Unless there's a pressing reason, you'd be better off saving your £££ for when you buy - in joint names.

[Dappa D]

thanks for your views all, much appreciated, as it transpires from digging a little deeper, you have to have had a mortgage with nationwide for 3 years to be classed as an existing customer and get their preferencial rates...as the mortgage is only 2 yrs old theres no point in putting me on it anyway, as even my mrs isnt classed as an "existing customer" (madness!)

so upshot is gonna wait and get a joint mortgage, put flat on the market, if it sells then rent a while.

as for the 15%, anyone got a spare 5k? :-)....ooo unless my insurance hurries up and pays out grrrrrrrr

[Baph]

I can agree with the deposit comments. We managed to put a 40% deposit down, 3 years ago.

In recent times my mortgage payments have fallen through the floor. I'm literally paying 1/3rd what I was at the start of the mortgage! Part of that was because were lucky enough to renew the mortgage just before the credit crunch/recsession.