Boring Mortgage Question for the experts

[See-Goals]

I know you're out there somewhere!

Two questions I would be very grateful for answers for. I'm planning on seeing the banks mortgage advisors at a later date but for now:

1) About 2 years ago I 'bought out' my father in law of the share of the house he shared with my mother in law. Basically it was a great big place and they were getting divorced.

I got a small mortgage which effectively paid the father in law off and landed me with a 100k mortgage. We have sinse sold up and moved on to a rented property. In the eyes of banks, If I want to get another mortgage now, Am i seen as a 'first time buyer' or if not, what am I classified as?

2) Mortgages in general at the moment - Is it fact that you haven't got a chance in hell of getting one unless you have a 15% - 20% deposit! I'm only after a 200k mortgage and have 10k ish deposit. Am I wasting my time in even looking? (If it makes a difference I have no debt whatsoever).

Thank you in advance to the mortgage experts, apologies in advance for boring everyone who isn't.

 

[tedebear]

No you're not a first time buyer..

What is the value of the property?

 

[See-Goals]

The properties I'm looking at are between 180k - 200k. I have about 12k in savings so I would be lookign to borrow the rest.

I have a feeling I haven't a chance in hell.

 

[Springal]

Yea, for any kind of decent deal at the moment you need atleast 10%, ideally 15%!

 

[See-Goals]

Excuse my ignorance (clearly I'm not an expert on these things) but how on earth is the housing market going to pick up when on one hand you've got property prices at an all time low and on the other you have banks demanding deposits which many many people will not have?!

 

[tedebear]

You'll have a chance but it will also probably depend on your income....

 

[See-Goals]

Do you know a ball park joint income that would give you a chance?

 

[tedebear]

Well the Nationwide as a guide line on their website won't lend more than £130k on a £30k pa.a salary....but I know for a fact that they will if you have a greater percentage of deposit...

Go and talk to your bank of choice - they won't be falling over themselves to give you a mortgage but at least you'll get it from the horses mouth...

 

[See-Goals]

Thank you for your advice - much appreciated.

 

[Hiney]

Many lenders will treat you as a first time buyer if you have not had a mortgage for 12 months. If you have been renting they may or may not want a landlord reference - ultimately it will depend on your credit profile.

Regarding a deposit, if you are after more than 90% on a mortgage, forget it.

There are 90% deals available but the lenders are doing their best to persuade borrowers not to take them out. For example, bearing in mind the Base Rate has just been cut to 0.5%:

Abbey will lend 90% at a generous 7.09% fixed for FIVE years, the £2,499 lender arrangement fee CANNOT be added to the loan and they will not give you any of their benefit packages, such as a free valuation or free legals.

The best rate from Halifax at 90% is 7.49%, again fixed for FIVE years.

Tip up to Abbey with a 40% deposit however and they will throw money at you at 3.89%

It's bloody SHIT

 

[Hiney]

Well the Nationwide as a guide line on their website won't lend more than £130k on a £30k pa.a salary....but I know for a fact that they will if you have a greater percentage of deposit...

Go and talk to your bank of choice - they won't be falling over themselves to give you a mortgage but at least you'll get it from the horses mouth...

15% minimum deposit for Nationwide

 

[See-Goals]

Many lenders will treat you as a first time buyer if you have not had a mortgage for 12 months. If you have been renting they may or may not want a landlord reference - ultimately it will depend on your credit profile.

Regarding a deposit, if you are after more than 90% on a mortgage, forget it.

There are 90% deals available but the lenders are doing their best to persuade borrowers not to take them out. For example, bearing in mind the Base Rate has just been cut to 0.5%:

Abbey will lend 90% at a generous 7.09% fixed for FIVE years, the £2,499 lender arrangement fee CANNOT be added to the loan and they will not give you any of their benefit packages, such as a free valuation or free legals.

The best rate from Halifax at 90% is 7.49%, again fixed for FIVE years.

Tip up to Abbey with a 40% deposit however and they will throw money at you at 3.89%

It's bloody SHIT

Thank you for that, very useful.

As I said I have about 12k savings, no debt and a desire to buy a property between 180 - 200k. So I need to top up my savings to at least 20k to have a chance? Our joint income is 53k.

 

[Hiney]

Thank you for that, very useful.

As I said I have about 12k savings, no debt and a desire to buy a property between 180 - 200k. So I need to top up my savings to at least 20k to have a chance? Our joint income is 53k.

In a nutshell, yes.

Income-wise that's fine - that will fit most lenders affordability criteria.

Ultimately, it's how badly you want to be home-owners again. The good news about that Abbey deal is that they are willing to lend at 90%, the bad news is they are doing it on shit terms for the borrower.

All depends how badly you want to be home-owners again I guess.

PM me if you want any more info.

 

[John Dorian]

I am an estate agent and I work with an independent mortgage advisor. We are currently telling people that they need at least a 10% deposit and have a good income/funds that the lenders will need to see to be qualified to go for a mortgage. Also, as estate agents, we will not proceed with offers on properties unless the purchasers have been qualified by our mortgage advisor. Finally, it is worth getting a quote from a bank and then also an independent mortgage company as then you will get the best quote on the market. I can get my mortgage guy to give you a call if you would like plus his fee is only £300+VAT.

Let me know if you need his number,

David

 

[beorhthelm]

I am an estate agent and I work with an independent mortgage advisor. ... Also, as estate agents, we will not proceed with offers on properties unless the purchasers have been qualified by our mortgage advisor.

so you'd refuse an offer if someone comes along who doesnt want to pay the mortgage advisor fee and sorts out their own mortgage (hardly Quantitive Analysis )? i wouldnt have thought you where in a position to dictate such terms.

 

[Uncle Spielberg]

Hiney beat me to it !. Darn day out. I am normally the first to offer my wares. PM me if you want figures but I would be delighted if you used him , not as much if you used me obviously however .

95% - No chnace
90% - yes but truly shit rates
85% - A&L are bext
80% - Woolwich Plc have a reasonable 5.29%, 4 year fixed rate
75% - great choice
60% - the world is your oyster

 

[Uncle Spielberg]

I am an estate agent and I work with an independent mortgage advisor. We are currently telling people that they need at least a 10% deposit and have a good income/funds that the lenders will need to see to be qualified to go for a mortgage. Also, as estate agents, we will not proceed with offers on properties unless the purchasers have been qualified by our mortgage advisor. Finally, it is worth getting a quote from a bank and then also an independent mortgage company as then you will get the best quote on the market. I can get my mortgage guy to give you a call if you would like plus his fee is only £300+VAT.

Let me know if you need his number,

David

I have made a policy of NOT charging a broker fee as I work for myself. Charging £ 345 is a piss take.

 

[seagullsovergrimsby]

I have made a policy of NOT charging a broker fee as I work for myself. Charging £ 345 is a piss take.

Does that mean he is getting a commission payment from the mortgage company and an additional £345 for doing the same paperwork ?

 

[Hiney]

Does that mean he is getting a commission payment from the mortgage company and an additional £345 for doing the same paperwork ?

Yes.

Nothing wrong with charging a fee, just as long as brokers don't take the piss. He would have to disclose the lender commission as well.

 

[Emily's Mum]

I am an estate agent and I work with an independent mortgage advisor. We are currently telling people that they need at least a 10% deposit and have a good income/funds that the lenders will need to see to be qualified to go for a mortgage. Also, as estate agents, we will not proceed with offers on properties unless the purchasers have been qualified by our mortgage advisor. Finally, it is worth getting a quote from a bank and then also an independent mortgage company as then you will get the best quote on the market. I can get my mortgage guy to give you a call if you would like plus his fee is only £300+VAT.

Let me know if you need his number,

David

And that sort of thing really makes it difficult for bank employees to buy houses. Well, it used to when staff mortgages were offered. I've seen so many people not get the house they were after because they worked for the bank & the estate agent wouldn't pass on the offer because they wouldn't get any mortgage comission from it.