View Full Version : Mortgage & Financial Advice Needed.
Hi again,
Trying to get my foot on the first rung of the property ladder here.
So what sort of Mortgage do you think I should get and where from, (ie Bank or Building societies)
Also how much roughly for an Survey.
Im living in rented quaters at the moment.
The property Im interested in is on the market @ £120,000 that I've seen so with a 100% mortgage how much do you think the repayments would be.
Thank you for any useful advise.
It's true what people say about being in the forces. "It's a hard life in Civi Street."
tbh i've jsut been through all this and you really need to go see a financial advisor as no-one on here really can help you with the specifics. Its not just about the mortgage repayment, theres a lot more too it than that.
You need to book a financial advisor to come over, go over your details then they can come back to you in a few weeks with the best route to go down.
For me, i got a 100% mortgage, but i saved and saved to fully kit the house, and I can now make over payments if I want.
surveys:
cost about 250-300 quid for the mortgage company survey (for this they just are looking to see if they get their money back if you default)
however if it's an older house i'd get a HomeBuyers report, usually about 450-500 quid and will highlight any major defects in the house that may not be obvious from a basic visual check (wall ties, etc)
i would not bother with a 100% mortgage- it is a headache, you will get hit for silly charges and insurance premiums and if property prices drop by just a minor fraction you will be in negative equity.
i would continue renting at the moment unless you can get an absolute bargain of a house at well under the asking price, the market is over inflated and cannot continue.. renting is the safest bet (in my opinion) as prices in the medium term will have to go down... the economy is based on false wealth (highest repos for decades, highest consumer borrowing, credit etc, coupled with low interest rates) - it has to come to an end sometime!
FYI a repayment mortage will be about 600-700 quid a month on that money
I so hope what you say is true there Gnan - but when? It could still be years yet... :(
it could be, but we are at the peak of the business cycle at the moment and it has started to flatten off.. the last trough was in 1993-95 when property prices plummeted after the 1989 boom - my house was almost 5x less than it is worth now back then
house prices are probably 30-40% over-valued - it makes me laugh when you see these 1st time buyer houses advertised "from only £185,000" and they're usually ****e things with wooden frames and paper thin walls.
to buy that you'd need a salary of about 60k-70k to be reasonably comfortable - how many FTBs get paid that much when the average salary is 14 grand? they are just encouraging people to get into ridiculous debts, taking out 40 year 100% mortgages so they can earn ridiculous amounts of interest and hopefully snatch the house back when they default.
Red ones
03-04-06, 03:57 PM
100% ?? Sounds a hard life mate!
take a peek at www.fool.co.uk a very helpful site - tehn find a good Independant Advisor - that means one that doesn't have a cosy relationship with an Esstate Agent - hard to find but worth the hunting!
BYW ex Council houses around here are c. £150 - 230k - ideal for 1st time buyers eh?
fizzwheel
03-04-06, 04:17 PM
I went to see a financial advisor as I was a first time buyer she advised me to.
1. Take out a fixed mortgage that way I knew exactly what my payments would be each month.
2. Take out life insurance.
3. Take out insurance in case I had an accident on the bike or got made redundant and had no income.
4. At the time the interest rates were lower than they are now so I was advised to take out a mortgage that was as fixed for as long as possible.
I borrowed £99K, my monthly payment is £523 + the life and unemployment insurance and also I had home contents insurance as well.
If I were you I would go and see a Financial Advisor and get them to go through all the options with you as I found it all a bit mind boggling to start with.
523 + insurances! i pay half that with everything in :)
Mr Toad
03-04-06, 04:31 PM
to work out repayments, use a mortgage calculator such as this one
Calculator (http://money.guardian.co.uk/calculator/form/0,,603156,00.html)
If you buy a copy of The Guardian on a Saturday, they have a league table with comparisons of mortgage rates in the Money section - it's a good place to start comparing lenders & rates.
You could also try Charcol Online
Charcol (http://mortgages.charcolonline.co.uk/)
they've got all sorts of advice & figures
good luck :wink:
kwak zzr
03-04-06, 04:32 PM
tbh i've jsut been through all this and you really need to go see a financial advisor as no-one on here really can help you with the specifics. Its not just about the mortgage repayment, theres a lot more too it than that.
You need to book a financial advisor to come over, go over your details then they can come back to you in a few weeks with the best route to go down.
For me, i got a 100% mortgage, but i saved and saved to fully kit the house, and I can now make over payments if I want.
a financial advisor is a good option if you hav'nt a clue what your doing, i used one on my first property purchace but after i found out how much profit they make off you i didnt do it on my second! your solicitor will take care of all the searches ect and your lender will take care of the property survey after all they are paying for the property. all you need to do is find the mortgage for you and that is quite simple really. low first time buyer %, fixed for a term your happy with,over how many years your happy with( the more years the less monthly ££)
a financial advisor is just another bill.
fizzwheel
03-04-06, 05:01 PM
523 + insurances! i pay half that with everything in :)
I bought my house in August 2004. I couldnt afford to buy it now. One next door to me just sold for £126K
kwak zzr
03-04-06, 05:09 PM
523 + insurances! i pay half that with everything in :)
could be a longer term of loan? or you could have a very good intrest rate.
kwak zzr
03-04-06, 05:11 PM
shop around for building and contence insurance, try not to take the lenders insurance's its normaly astronomical! northen rock are a good lender.
JediGoat
03-04-06, 05:59 PM
Richie
Give these guys a ring -
http://www.lcplc.co.uk/
They're an independent broker and they don't charge you a fee. They get money from the lender if you take a mortgage out via them - although they made it clear to me that I was completely within my rights to take their advice, then go direct to the lender for the same deal.
They'll go through the whole business of suitable types of mortgage, repayment term, and cost per month. Then they find you they best deal currently on the market.
HTH
Jo
Red ones
03-04-06, 06:24 PM
tbh i've jsut been through all this and you really need to go see a financial advisor as no-one on here really can help you with the specifics. Its not just about the mortgage repayment, theres a lot more too it than that.
You need to book a financial advisor to come over, go over your details then they can come back to you in a few weeks with the best route to go down.
For me, i got a 100% mortgage, but i saved and saved to fully kit the house, and I can now make over payments if I want.
a financial advisor is a good option if you hav'nt a clue what your doing, i used one on my first property purchace but after i found out how much profit they make off you i didnt do it on my second! your solicitor will take care of all the searches ect and your lender will take care of the property survey after all they are paying for the property. all you need to do is find the mortgage for you and that is quite simple really. low first time buyer %, fixed for a term your happy with,over how many years your happy with( the more years the less monthly ££)
a financial advisor is just another bill.
I have used 2 advisors. teh first cam ein with aprice close to one i could have arranged, teh other came in at £125 per MONTH less. Find a goog one, and keep them in beer!
mysteryjimbo
03-04-06, 06:40 PM
523 + insurances! i pay half that with everything in :)
could be a longer term of loan? or you could have a very good intrest rate.
Or he could be very old and owned his house for the past 15 - 20 years....... :wink:
Anonymous
03-04-06, 07:34 PM
i went to financial advisor after separating from hubby and having to sell house. on my wages i could get a mortgage of £21k even up here you cant buy anything for that. so i got a self employed mortgage you dont have to prove income just convince financial advisor you can afford repayments.
got a mortgage of £42K in the end and had to take out sickness insurance, unemployment insurance, life insurance etc. scary time.
rich just dont be pushed into anything they can be quite pushy these guys offering you loads of money.
all the best anyway. look foward to the house warming. remember accidental insurance :lol:
I honestly suggest you avoid financial advisors like the plague. They are trained to a minimum standard and are only really interested in making themselves a profit.
If you want a good idea of what sort of mortgage you can afford and how much it'll cost then visit Bradford & Bingley (http://www.bradford-bingley.co.uk/Mortgages/mortgages.asp) which searches products from a wide range of lenders.
If you want to PM me details then I'd be happy to give you some independent pointers. :wink:
... in the end and had to take out sickness insurance, unemployment insurance... scary time.
Case in point. The sale of insurance schemes directly benefit the independent advisors and I very much doubt these were compulsory for the mortgage you wanted. :x
hehe.. no i'm a savvy buyer and paid 50% of the house value :)
you are right about the financial advisors.. i remember when i went to look at a house in 2004, everything was good until they said i had to take insurance out (£94 a month for home insurance, £53 for redundancy and pay some ridiculous 'arrangement' fee which is just a con) - daylight robbery and i told them where to stick it
my home insurance is something like 200 quid a year including contents,they were trying to charge me over 5 times as much, robbing gits
Before buying wait a few months, very soon sellers will have to pay about £1000 to put together a "sellers pack" which will detail all work carried out weather DIY or prof. Will ask brother in law for more info & post it up.
timwilky
04-04-06, 06:30 AM
Numbers.
Perhaps I am in a fortunate position as I paid my mortgage off last year and therefore cannot properly comment on modern money lending techniques.
At the time I took out my repayment mortgage I put down a 15% deposit on the house and took a mortgage of twice my salary. Freinds said I was daft going with a traditional mortgage as an endowment would pay it off and leave me with a good few grand in the back pocket. I could not understand how an endowment policy could be a secure financial instrument and stayed well clear. Isn't hindsight a great teacher.
Going through the 80s, 90s recessions with redundancy every other week I always regretted not having a policy that would cover me should the worst happen. These policies never existed when I took out my mortgage but as redundancy never happened it was money saved.
When the interest rates went through the roof in the 80s I was fortunate enough that by then my salary had increased by 50% on what it was at the mortgage inception, so was able to bear the brunt and increase my payments, which I never reduced. Hence I was able to pay the damm thing off 7 years early.
To my simple mind I find modern practices suspicious in that. The building societies are falling all over themselves to lend money to to good risk applicants. Therefore why should you pay anyone huge sums simply to make the applications on your behalf. Shop around. Whilst rates are fairly low look at fixed rate stuff. At least you can then work out your budgets knowing your commitments for the next few years etc.
However. Please don't bite off more than you can chew. Remember you have to live, cars/bikes etc need replacing, kids want want want. I have seen a number of people overcommit and come croppers.
Good look with your purchase plans and I look forward to the house warming :lol:
tbh i've jsut been through all this and you really need to go see a financial advisor as no-one on here really can help you with the specifics. Its not just about the mortgage repayment, theres a lot more too it than that.
You need to book a financial advisor to come over, go over your details then they can come back to you in a few weeks with the best route to go down.
For me, i got a 100% mortgage, but i saved and saved to fully kit the house, and I can now make over payments if I want.
a financial advisor is a good option if you hav'nt a clue what your doing, i used one on my first property purchace but after i found out how much profit they make off you i didnt do it on my second! your solicitor will take care of all the searches ect and your lender will take care of the property survey after all they are paying for the property. all you need to do is find the mortgage for you and that is quite simple really. low first time buyer %, fixed for a term your happy with,over how many years your happy with( the more years the less monthly ££)
a financial advisor is just another bill.
You went to the wrong company lol
I didn't may my FA anything at all. In fact, she was superb and i'd recommend her to anyone down south....
She came over to my house, whenever i wanted, and done an initial meeting with my other half and I. What WE want, what she advises etc.
2 weeks later, she comes back over with about 5 different options and lenders and plans. We decide which one we want, she goes off and arranged. She even advised us a solicitor which we took.
Theres NO charge, no commision or anything. Her company gets the money from the lenders so theres no charges at all to us.
Anyone want more info, PM me..
Anonymous
04-04-06, 09:31 AM
... in the end and had to take out sickness insurance, unemployment insurance... scary time.
Case in point. The sale of insurance schemes directly benefit the independent advisors and I very much doubt these were compulsory for the mortgage you wanted. :x
oh buggar dont tell me that :cry:
they usually make commission from the insurance companies, are you paying a lot of money for insurances?
Red ones
04-04-06, 10:01 AM
You can usually find an advisor who gets their commission from the lender. Basically they work like insurance brokers - they buy the mortgages in bulk, therefore get a better deal (after all they are also acting as a filter for the lender, weeding out the stupid applications) - don't go to one who charges you.
They also have access to a much larger database of lenders than you can find on the web, therefore even if they did charge you say £200, they can recoup that for you on your repayments. Remember my earlier post? I had shopped around and found an OK deal according to my searches, then my IFA found a better one - even he charged £250 for his advise (which he didn't) I would still be £7,250 better off after 5 years! (That's almost a brand new 'Busa!!!!)
Again I repeat the reference to Motley Fool (http://www.fool.co.uk) for material about insurances - sometimes it pays to self insure!
Yeah, the lenders tried to give me a silly insurance quote, but we searched and found our own for nearly half the costs.
There was a £25 release fee, but this is from the lenders, not the FA.
She was superb, as I say, i'd recommend her to anyone. No charge, and she comes to see you when you want, where you want.
what sort of mortgage deal did you get? they must make money somewhere
Anonymous
04-04-06, 02:44 PM
they usually make commission from the insurance companies, are you paying a lot of money for insurances?
i dont think im paying much as its only £22 a month and that is life cover, critical illness and unemployment cover.
Ceri JC
04-04-06, 03:02 PM
Richie
Give these guys a ring -
http://www.lcplc.co.uk/
They're an independent broker and they don't charge you a fee. They get money from the lender if you take a mortgage out via them - although they made it clear to me that I was completely within my rights to take their advice, then go direct to the lender for the same deal.
They'll go through the whole business of suitable types of mortgage, repayment term, and cost per month. Then they find you they best deal currently on the market.
HTH
Jo
Seconded. They're the folks I'm using. Professional, truly independant and free (for you at least). What more do you want? :)
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