Getting a mortgage [confused]

[lj0310]

Hi mummies, someone with a better idea would be great. My partner and I are looking at buying our own house august/September time. We are looking to move up to the north east/Northumberland area. But what is it exactly you need to know? I'm currently on benefits and my partner is in the army so the mortgage would be going in his name would I loose out on all my benefits? I want to go back to work anyway just childcare is crazy prices. If someone could shed some light on the need to knows be great. Thank you x

[Indith]

Well if you are going to be moving in together then yes your benefits will probably reduce because they will expect you to be a financial partnership and will consider the income level as a whole in your house.

You need to contact a mortgage adviser. Most estate agents will be able to put you in touch with one. They are independent and can go through everything with you and explain how the process works. Basically thye look at your income, look at your main outgoings and then see how much disposable income you have left. That gives them an idea of how mcuh you can afford to pay each month. The size of deposit you have will affect what mortgage you can get, usually a bigger deposit means a mortgage with a lower interest rate and smaller monthly payments.

A few of the banks have good calculators on their websites. Natwest has a good one, you can put in how much you would like to borrow (so value of the house you are looking at minus your deposit) and then it brings up the mortgages it has and how much your monthly payments would be. You can play around on it and see how much your payments would go up or down by depending on how much you borrow, deposit size etc. Use it to give you a good idea of your budget but then shop around for the mortgage.

Look at fees, all mortgages have fees. Mostly they get added to your mortgage but if you can pay up front then you save yourself paying interest on the fee. Some bank accounts come with special deals and can be transferred to someone else. Eg MIL has a posh HSBC account and was able to pass on her entitlement to a special mortgage deal on to us when we remortgaged so check with parents and inlaws!

Good luck, the NE is a great place to live.

[Indith]

Oh re benefits then look on entitled to online and put in the financial details for you and your partner living together, that will give you a good idea of what you will get as a couple.