Mortgages

[pds]

I have no idea about mortgages and seem to be going round in circles looking on the internet. (I have only started looking tonight).
If anyone could gve any tips or point in the right direction that would be great.
Basically I just want to know the likelihood of getting a house for the value of £100k, we have a deposit of around £15k. Our income is not the highest.

 

[Nottingham Fox]

I have no idea about mortgages and seem to be going round in circles looking on the internet. (I have only started looking tonight).
If anyone could gve any tips or point in the right direction that would be great.
Basically I just want to know the likelihood of getting a house for the value of £100k, we have a deposit of around £15k. Our income is not the highest.

I was in the same boat only 18 months ago.

Your deposit of around 15% will certainly be an advantage, and as long as you've not got any real bad credit problems then I think you'll be fine.

I wanted the security of knowing that I would be paying a certain amount for a fixed period, to help with other associated costs of buying a house. My mortgage is fixed for 3 years. As it stands the interest rate hasn't increased, and doesn't look like doing so anytime soon, but you do need to be aware that even a 1% increase at the end of your fixed period could hike up your repayment quite a lot.

I used a company called Meridian Mortgages to sort mine out. This was fee free. I think they're based Oadby way. A mortgage broker like a salesman could potentially try and steer towards a particular type of mortgage that will get him the biggest commission payment.

If it helps my mortgage is with Santander, and i'm more than happy with the deal that I got.

Also keep an eye out, as some will come with perks such as free valuations, and even £XXX amount towards solicitor fees etc.

I'm no expert, but hope you find my info of some help.

Edit: Just to add, I chose to go with Santander as at the time (not sure about now) they were the mortgage provider who were lending way more than the others.

 

[RHYDAL]

I have no idea about mortgages and seem to be going round in circles looking on the internet. (I have only started looking tonight).
If anyone could gve any tips or point in the right direction that would be great.
Basically I just want to know the likelihood of getting a house for the value of £100k, we have a deposit of around £15k. Our income is not the highest.

Money Supermarket suggests that a 15% deposit is OK but you'd need to be earning 25-30k joint per year (estimate) to be accepted. 4% per annum seems quite high against a 0.5% base rate but I'm on a tracker at 0.7% above that so seems to be as good as there is right now.

Shop around. Work out the cost of the mortgage over the 25 year period rather than the immediate cost would be my advice. Work out your repayments and how much tolerance you'd have for rate increases too.

What's available for 100k? In Cardiff that wouldn't go anywhere.

 

[Jeff]

Save yourself some money PDS, you don't need to spend that much.

Derrick Bird's house is being auctioned off soon - the guide price is £35,000 - £45,000. Similar properties in that area are £70,000 so you could get a bargain.

The commute to Leicester could be a problem though, it's 4.5 hours each way by car, or 5-6 hours by train.

 

[bocadillo]

What's available for 100k? In Cardiff that wouldn't go anywhere.

£98,500 in Cardiff

 

[Nottingham Fox]

Money Supermarket suggests that a 15% deposit is OK but you'd need to be earning 25k joint per year (estimate) to be accepted. 4% per annum seems quite high against a 0.5% base rate but I'm on a tracker at 0.7% above that so seems to be as good as there is right now.

Shop around. Work out the cost of the mortgage over the 25 year period rather than the immediate cost would be my advice.

What's available for 100k? In Cardiff that wouldn't go anywhere.

Over 100 properties on Right Move in Cardiff for £100k or under.

I bought a new build last May, 3 bed detached, garage, big rooms for a new build, decent garden too for £105k.

There are some bargains to be had :icon_razz

 

[RHYDAL]

£98,500 in Cardiff

About 500 yards from the Wilson Road riots of a few years back. I wouldn't send my dog to live there.

http://en.wikipedia.org/wiki/Cardiff_Ely_Bread_Riots

 

[pds]

Thanks for the help and suggestions,
Our income falls short of the amount mentioned by perhaps 2 or 3k, the girlfriend works variable part time hours so hard to say exactly.
There are some decent enough little houses for around 100k in this area.

I just want some security with a baby on the way. I'm currently renting but the landlady has advised she is selling in the near future and I really can't be arsed with having to move every couple of years.

 

[pds]

Thanks for the help and suggestions,
Our income falls short of the amount mentioned by perhaps 2 or 3k, the girlfriend works variable part time hours so hard to say exactly.
There are some decent enough little houses for around 100k in this area.

I just want some security with a baby on the way. I'm currently renting but the landlady has advised she is selling in the near future and I really can't be arsed with having to move every couple of years.

Plus we've got no issues with regard to payments. Neither of us have ever missed a payment on any direct debits etc.

 

[bocadillo]

About 500 yards from the Wilson Road riots of a few years back. I wouldn't send my dog to live there.

http://en.wikipedia.org/wiki/Cardiff_Ely_Bread_Riots

Not everybody can afford to be so choosy. I wouldn't send my dog to live anywhere in Cardiff but that's for different reasons.

 

[Nottingham Fox]

Thanks for the help and suggestions,
Our income falls short of the amount mentioned by perhaps 2 or 3k, the girlfriend works variable part time hours so hard to say exactly.
There are some decent enough little houses for around 100k in this area.

I just want some security with a baby on the way. I'm currently renting but the landlady has advised she is selling in the near future and I really can't be arsed with having to move every couple of years.

Just nip in to a few banks, or use their online calculators to see whats around. That way you're not wasting time applying left right and centre as mortgage knock backs will only reduce your chance of being accepted.

You could also try and get whats known as an 'Agreement in principle' - This is no way a firm mortgage offer, but it's a fairly decent indication the lender is prepared to do business. You are not tied in to anything should you wish to withdraw from taking the application any further.

The £25k joint income is only a guideline - if you can prove that you survive fairly hassle free on a slightly lower joint income (they'll see this from the bank statements you have to supply) then you should be fine.

 

[Durham Fox]

I think you might struggle with your deposit a little. Last time I heard, most high street lenders were wanting 25%+ deposit.

Mortgage lending is on the floor and they are being quite stringent.

 

[RHYDAL]

Not everybody can afford to be so choosy. I wouldn't send my dog to live anywhere in Cardiff but that's for different reasons.

Is he white and fluffy?:icon_wink

 

[pds]

From my uneducated trawl of the Internet a lot of people seem to be suggesting the post office as the best option for first time buyers?

 

[RHYDAL]

Not everybody can afford to be so choosy. I wouldn't send my dog to live anywhere in Cardiff but that's for different reasons.

Seriously though, I was concerned that buying a £100k house in a shitty areaa could prove to be a bad investment in the long term. The fact that one of you pointed at a house in a no go area where even the buses dont run from time to time due to bricks being thrown at them proves my point.

Do your research. It may be that renting in the short term may be a better option as house prices are going nowhere. I'm not familiar with the housing market in Leicester, get some advice. Under normal circumstances, getting on the housing ladder is the best advice. Right now, it may be better to sit tight.

As for Durham's advice, the first timer tab on Money Supermarket suggests otherwise with regard to deposits.

As I mentioned, work out your repayments, and then figure in rates, water, gas, electric, phone, tv, insurance, maintenance etc etc. It all adds up.

 

[bocadillo]

Seriously though, I was concerned that buying a £100k house in a shitty areaa could prove to be a bad investment in the long term. The fact that one of you pointed at a house in a no go area where even the buses dont run from time to time due to bricks being thrown at them proves my point.

No-go area? Did you even read your own link ?

For many residents of Ely, the disorder was only experienced via the news as it only affected a restricted area of the district.

 

[Jeff]

From my uneducated trawl of the Internet a lot of people seem to be suggesting the post office as the best option for first time buyers?

You shouldn't think of it like that, it could be that the best option for someone else would be the worst option for you. It will be down to your circumstances, and how much the lenders want your business. Shop around for the best deal.

And make sure you know how much having the baby will cost you. There's no point working out a budget on what your earnings and outgoings will be now, work it out based on what it will cost you when the baby's born.

Have you thought about buying via a housing association, one of the shared ownership schemes? It would be cheaper than buying outright, but you'd still have the long term stability of owning the house. Being first time buyers with a baby on the way should mean you qualify for one of these schemes.

 

[RHYDAL]

No-go area? Did you even read your own link ?

Are you seriously lecturing me on the areas of Cardiff? Most of the residents of Ely are high on one substance or another so wouldn't know if a nuclear bomb had gone off. Glyn will back me up on this (please).

Dont get me wrong, I used to play rugby for a team in that part of town and I have good friends who live there, but they would love to leave if they could sell up.

I would no more live there than live in Leicester.

 

[bocadillo]

Are you seriously lecturing me on the areas of Cardiff?

I'm not lecturing anybody on anything. It was you who said that you couldn't get a house in Cardiff for £100k when clearly there are more than several available.

 

[Dour]

Have you thought about buying via a housing association, one of the shared ownership schemes? It would be cheaper than buying outright, but you'd still have the long term stability of owning the house. Being first time buyers with a baby on the way should mean you qualify for one of these schemes.

Sound advice - especially if your main goal is stability.