Offer/morgage?

[Carcake]

Hello lovely people,

I am posting in AIBU to get some traction with help/experience of the above

I am a 1st time buyer

Found a lovely flat for £270k that’s been on the market for a while and has already been refunded once.

Id like to go a view it but don’t want to waste anyone’s time. The max I’d offer is £260k but also probably go in cheeky at £250k first as who knows

I will also speak to a mortgage advisor. Any advice on which companies are best?
Also, are online mortgage calculators accurate or usually go under?

If it matters I’m young (32) with a secure mid pay job (think 50k)

I have a fair bit of money saved and could put down 10% although if I didn’t need than I’d like to do 5% and benefit of any first time offers that are might be out there.

any thoughts would be so appreciated!

Go and view it, what looks good on paper might not give you the feels. If you like it, you can then decide on what to offer. If it’s too low you can negotiate up. Try talking to your bank first, see what they will offwr then you have something to compare it with.

good luck, it’s going to be exciting

I think London and Country are great for mortgages, well worth a call. I think £10k under is perfectly reasonable and a look could make you think I'd stretch a bit or actually this isn't for me, unless you think it's grossly overvalued I may be more inclined to go £15k under than £20k as that's quite a big percentage. If you are earning £50k you should get £250k which should cover you with a deposit for mortgage and other costs (so long as the repayment is affordable and you haven't got childcare etc). Go for it. We looked at a couple of houses we didn't think we'd buy but sort of fitted to understand the market. We wouldn't have wasted someone's time if there was no chance, but it helps inform you. I think I've looked at 12 places in my life and bought 2 in case anyone thinks I'm an awful person! Good luck.

You might find you need a mortgage in principle before you can view, we found a couple of estate agents asked about it, but others didn't!. You'd also have a good indication of what you could borrow

First you need to find what you can borrow at what LTV.

I use an independent broker. Yes they are paid a commission by the mortgage company but I’ve always found that they get me better than high street bank deals, and as long as I’m not paying them they do all the legwork.

Have you actually looked into the finances? A 5% deposit and borrow almost £250k on a 50k salary is nuts.

thanks all ☺️

@Sofiewoo , I have done minimal research so far but if you are thinking it’s nuts cause I can’t afford it then just as an insight my current rent is £1,700/month. This is rent only… and I have been renting like this for 2years. From what I can see if I borrowed £250k, the repayments would be £1,400 tops/ month 🫣 so I can definitely afford the mortgage it’s just whether I can get it 😅

Just remember that even though people have been talking about mortgage rates rising they are still comparatively low. I think mine in 2010 was around 7% from memory. You can afford the repayments comfortably now. Just have a plan for what may happens after the fix.

Another vote for London and Country, or L&C as they are called now. A lot of brokers will charge you a fee, but this company doesn't. I also think they provide a very good service. I've spent most of my career working for various mortgage lenders but still use L&C for advice when I'm taking out a mortgage.
In terms of viewing, do it, don't worry about wasting people's time, if you were buying a car, you'd test drive a few, buying property is a massive step, you need to view different properties to get a feel before you commit, it can be very different standing in there to viewing online, this is literally what estate agents are paid for.
Good luck!

Don’t even look at houses until you have a mortgage in principle. Until you get one, you have no idea how much a lender will offer you. Make sure it is an independent advisor that will search across the market as lenders vary a lot in how much they will lend.

Go and view it first. I would recommend using an independent mortgage broker, not your bank, not one recommended by the estate agent. Apply for a mortgage in principle. That can happen very quickly, within days.

Personally, I found the online calculators were way off. We do have complicated finances (I’m employed but Dh is director of a Ltd company as sole shareholder). We got a much, much better rate through an independent broker than any of the banks online and technically they would have lent us about £200k more than the online calculators (we didn’t need or want that much!). But you really do need expert guidance for the right deal.

Also you don’t need to borrow your max. If you speak to a broker and they say you can borrow 275 it doesn’t mean you need to up your budget and start looking at more expensive properties. Use the online calculators but so many people hear what they can borrow any then just max out

Unfortunately, this isn't how lenders view the world. They will give you a multiple of your salary, less any debt you have. It used to be 3.5 times salary, but some lenders are lending 4+ times salary. On 50k, you should work on the basis of 4 x salary, so they'd lend you 200k, less any credit card balances etc.if you can get 4.5 times salary, it would be your only reasonable hope. They also work on affordability at standard interest rate,not necessarily discounted rates. And they will take into consideration how much you are putting down. The more you put down, the better the interest rate you'll get.

Speak to a lender. I have used L&C, but I could find my own deal just as easily.

Unfortunately, mortgage lenders don't look at what you can afford to pay in rent. They stress test your ability to pay at a much higher interest rate. I doubt you'd be able to borrow 225k on a 50k salary, but it's worth trying.

Thank you all for the recommendations on L&C. I’ve just filled out their online mortgage calculator - it was a lot more complex than any other ones I’ve tried so far. Took commissions, private pension, etc into account and also details about my job. I’ve got at the end that I can borrow £247k… I appreciate that it’s based on an online questionnaire though so will reach out to them next week to speak to an actual human and she what is realistic 😊

Try Habito, online free broker who I've used a few times and really rate

Yes, I know that, thank you! @HappiestSleeping and @SoSoLong

I was just referring Sophie’s comment, as I took that she indicated that I could pay the mortgage based on my salary even if I got the mortgage for the amount I need for this property. Which is not the case, but I understand that doesn’t matter to the mortgage lender what I previously paid in rent

Thank you, will give that a try too