Mortgage & Financial Advice Needed.

[Richie]

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

[Skip]

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]

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]

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

to work out repayments, use a mortgage calculator such as this one

Calculator

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

they've got all sorts of advice & figures

good luck

Originally Posted by Daimo

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.