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Original poster

Mortgage assistance/advice needed

30 replies

MotherFunk · 04/02/2008 20:31

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tiredemma · 04/02/2008 20:33

Where are you looking to buy? How much are you looking to borrow??

scanner · 04/02/2008 20:35

I'd suggest you contact John Charcol, you may have to pay, but they are great. When dh and I bought our first place we didn't think any mortgage company would touch us, but they found us a mortgage with no problems.

NorthernLurker · 04/02/2008 20:36

If your credit rating isn't good then I think you will find a mortgage will cost you more than someone with a good rating. Also - have you anything put aside for expenses - valuations etc? If not then I would suggest you forget the mortgage for now and try to save up a bit. The good thing about that is hopefully prices will stabilise/drop whilst your credit rating improves.

Original poster
MotherFunk · 04/02/2008 20:37

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MotherFunk · 04/02/2008 20:39

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NorthernLurker · 04/02/2008 20:49

You can get your credit rating from an agency such as Experian - that should tell you what the problem is.

Expenses - you need stanp duty - 1% if your house costs over 120,000. You have to pay the bank to value your purchase for mortgage - although you can often get that refunded - but you need to pay the valuer on your own behalf for your survey or report - I think that starts at around £300? And you need to pay the solicitor - just buying is around £500 in fees as I recall. And that's all before you've moved in

NorthernLurker · 04/02/2008 20:49

stamp duty!

tiredemma · 04/02/2008 20:51

MF- I have a shite credit rating and our mortgage is just in DP's name as I was only being offered mortgages with extortinate interest rates.
We had a 'homestart' mortgage form HSBC where basically you pay 'interest only' for the first 3 years of the mortgage ( so you pay nothingoff the mortgage during this time) This was the only way that we could get on the property ladder.- not ideal

Even with this mortgage we still needed a deposit and together with our soliciters fees, valuation etc this all came to 10k ( on a mortgage of 110k)

Edinburgh is one of the most expensive places in the UK to buy. Have you thought about 'part rent, part buy' options?
The mortgage is smaller, you own 50% of property and 'rent' the other 50%. Worth looking at if funds are limited.

Original poster
MotherFunk · 04/02/2008 20:52

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tiredemma · 04/02/2008 20:53

And how much you can get is based on your yearly income (you are self employed I think i recall?)- Dont know how it works with self employed

Original poster
MotherFunk · 04/02/2008 20:55

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tiredemma · 04/02/2008 20:59

start a thread on here asking for an Independant financial Advisor, they will be able to explore all options for you.

Worth getting your credit report also- sometimes having no credit affects your credit rating! ( how stupid)

gomez · 04/02/2008 21:02

Motherfunk - have you looked at any houses in Edinburgh? You won't get much for 150k.

Anyway, you will generally need a minimum of a 5% deposit so for this 150K house you would need 7.5K deposit plus stamp duty at 1% 1500 plus around £800 for fees/searches/deed fees etc. with your solicitor plus around 150/200 for a valuation or nearer 400 if you get a homebuyers survey. So about 10,000 for deposit plus upfront costs.

You will struggle to get a 100 or 105% mortgage in the current climate, particulary if you have a less than good credit rating.

Also bear in mind the offers over system in Scotland may mean that you are paying 150K for a house valued at 140K but your mortgage is based on the valuation not the purchase price so you will also need extra money up front to cover that difference.

2.5 or 3 xincome is what you will generally be offered from high street lenders so you and your partner (it varies and depends if joint or single application) but as a rought idea you (plus any partner) will need an annual income of around 50K to buy at the price you mentioned above.

HTH

gomez · 04/02/2008 21:04

Also you might like to look at Parc Life in Edinburgh - this is the regenration of bits of Craigmillar, affordable quality housing with lots of facilities being developed. Have a look here www.parclife.co.uk/Home.aspx

lostandlonely · 04/02/2008 21:05

someone's dh was a morgage advisor, think advert is in business ad's

i didnt realise someone with bad credit could get a morgage... i would love to buy somewhere.... but i work partime, i guess with tax credit i get about 18,000 a year... not enough i suppose? although i could look into the keyworker places..
i guess i should just try all they can say is no?

gomez · 04/02/2008 21:08

Sorry promise finished now - didn't mean to sound so negative. An IFA will always be able to get you a mortgage. Don't use a broker that will cost - an IFA will get commission from your eventual lender.

As self-employed you could consider a self-certification mortgage which is not based on mutilples of income but in essence what you say you can afford.Can be very expensive.

You can always get what you need somewhere in the market but you will pay through the nose for it - particularly at the moment.

Right I will stop boring you now. Good luck

Original poster
MotherFunk · 04/02/2008 21:09

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MotherFunk · 04/02/2008 21:10

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gomez · 04/02/2008 21:18

Ah well a flat would be do-able then.

Think property market in edinburgh will stagger along a bit this year so hold your nerve and you might pick up a wee bargain later on in the year. Worth considering saving like billy-oh for most of this year to improve your ready cash situation and then move in for the kill on a fixed price job at the tail-end of the year when nothing moves and sellers are desperate.

Spring is when the market would normally start moving up and competition, particularly where you are looking in the market is fierce.

Not surprised you ain't too keen on Parc Life - but it all looks shiny on the web does it not

tiredemma · 04/02/2008 21:18

Edinburgh is lovely. I saw a property programe where someone brought the most beautiful property on The Royal Mile, it was the same size as my coffee table and cost megabucks, but it was lovely.

have a good mooch around on the interbet MF- im sure you will find tonnes of info.

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MotherFunk · 04/02/2008 21:26

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tiredemma · 04/02/2008 21:31

I would avoid renting like the plague. We rented for 3 years before buying here and I worked out that we payed 28k off someone elses mortgage. Sickening.

Why are you in such a rush- are you renting currently and have to move on?

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MotherFunk · 04/02/2008 21:48

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tiredemma · 04/02/2008 21:51

Oh no- dont do that then. Dont want any paranoia here!
Good luck- keep us posted how its going.

GrinningSoul · 04/02/2008 23:17

we used a really good mortage broker recently and she didn't charge us - in fact she got us some cash back. she's been v thorough. the website is here. i promise she's not a relative!