first time buyer bigger - mortgage required - HotUKDeals
We use cookie files to improve site functionality and personalisation. By continuing to use HotUKDeals, you accept our cookie and privacy policy.
Get the HotUKDeals app free at Google Play

Search Error

An error occurred when searching, please try again!

Login / Sign UpSubmit

first time buyer bigger - mortgage required

£0.00 @
Hi all I want to get onto the property ladder. I am a first time buyer and I'm based in Northern Ireland. Wages in Northern Ireland are not great, I am full time employed and have a good deposit s… Read More
Ger73 Avatar
4m, 1w agoPosted 4 months, 1 week ago
Hi all

I want to get onto the property ladder. I am a first time buyer and I'm based in Northern Ireland.
Wages in Northern Ireland are not great, I am full time employed and have a good deposit saved up.

When I looked for a mortgage the amount I was offered was way below what I thought I could get.

Does anyone know if I contacted my bank whom I've been a customer with for nearly 15 years if they would offer me a better possible special rate and possibly more money as the bank can see exactly my incoming and outgoings for past 15 years?
I have been working on budget and saving every week.

I was told that the bank would have special rates available, has anyone been in the same position?

I'd be grateful for any advice, I would need at least 10-15k more on my first time buyer mortgage...

Any suggestion on how I could save this quickly, I've seen a house I would like to buy but just can't afford it..

Waiting in anticipation

Thanks
Tags:
Ger73 Avatar
4m, 1w agoPosted 4 months, 1 week ago
Options

All Responses

(15) Jump to unreadPost an answer
Responses/page:
#1
I think you might be better offer getting in touch with a mortgage adviser or broker who might be able to do a soft search for you with the best deal
#2
Interest rates are only going to go up. Whatever you do, don't overstretch yourself. Banks will generally lend approx 3-3.5 times your salary. If you are looking at borrowing more than this, think about how much your repayments may go up when interest rates rise. I always worked on the assumption of 10% interest and I'm old enough to remember when that was the norm. As a first time buyer you are not in a chain which may help you to negotiate the price down. If you have a mortgage agreed and can exchange quickly that puts you in a better position than those in a chain. The government has introduced first time buyer isa which would certainly help towards your deposit if you were prepared to save a bit longer. I appreciate you may well want to get on the property ladder as soon as you can and you have seen a house you like but be aware that perfect home could become a dreadful burden if you can't afford it. I don't want to put you off, just want to make sure you don't rush in to something you may regret.
#3
Try using a mortgage calculator. I just went on the Halifax website and they have one on there. Type in how much you earn a month, how much your outgoings are and what deposit you have and they give you an estimate on what they will lend you
#4
If you are a saver - go into First Direct website and have a play around - consider fixing - consider their offsetting option - you wont regret it. If push comes to shove you will have to lower your borrowing and buy a smaller place. Buy a smaller place in a great area (off Lisburn Rd) - save save save and lower your mortgage outgoings with an offset. Then think about buying your next home - one mortgage at a time Sweet Jesus :)
#5
Have u seen the Help to Buy Scheme? Borrow up to 20% of the value of your home and pay just £1 a month for the first 5 years. The figure u borrow counts towards your deposit. This can give u access to better rates and a bigger property. https://www.helptobuy.gov.uk/
#6
Short answer: no, banks and lenders don't work that way anymore.

As suggested, contact a no fee mortgage broker as they have access to special rates.
#7
Hi
I've purchased my first house 10 years ago. neither bank or broker could help me as the amount I needed was greater then 3-3.5 times of salary and we had only 5% deposite.
Ive decided to take things in my hands and went online.
At the time Aliance and Leister were given 5x salary. Ive done everything online and took 5 year fixed intrest only.
2 years ago we have earned 50£k on property and managed to move to bigger house thus time with Virgin 5 years repayment.
All Ive used was advice from Money Saving Expert website, which is brilliant.
I personally think its better to go on property ladder asap if you in rented property as with no difference you still have to pay similar money but may happily (which may change if market calapsed) generate profit on your property.
All the best deals for low income, low deposite borrowers will obe online mainly with building societies and not available online.
However a good broker could find you something similar and wih a small fee woild do a paper work for you which will give you better chance of getting your mortgage.
All the best.
#8
They'll ask you about your income and outgoings to see if you are able to afford the repayments.
Your core expenses (i.e. Bills, taxes) shouldn't be more than 35-40% of your total income.
They'd want to see that you'd have some surplus after you've paid for all your monthly expenses.

Best to speak to a mortgage advisor to get expert advice though. They can help you find the best deals and give better advice based on your individual circumstances.
#9
psychobitchfromhell
Interest rates are only going to go up. Whatever you do, don't overstretch yourself. Banks will generally lend approx 3-3.5 times your salary. If you are looking at borrowing more than this, think about how much your repayments may go up when interest rates rise. I always worked on the assumption of 10% interest and I'm old enough to remember when that was the norm. As a first time buyer you are not in a chain which may help you to negotiate the price down. If you have a mortgage agreed and can exchange quickly that puts you in a better position than those in a chain. The government has introduced first time buyer isa which would certainly help towards your deposit if you were prepared to save a bit longer. I appreciate you may well want to get on the property ladder as soon as you can and you have seen a house you like but be aware that perfect home could become a dreadful burden if you can't afford it. I don't want to put you off, just want to make sure you don't rush in to something you may regret.

It probably depends on the part of the country but many lenders offer up to 5 times your provable income, might be a minor point but it was essential when I purchased a house in the south east. So if you need to borrow more than 3 times your earnings you still may be able to.

Also the amount they will lend will vary as each lender has different affordability calculations (if you have debt, dependants, spend a lot on travel or holidays, etc)..

100% go and see a mortgage broker first.

Edited By: delusion on Mar 18, 2017 09:41
#10
We were in this situation years ago and went to a local mortage advisor, he contacted a few places and ended up getting us a mortgage with on of the banks that had turned us down. Things might have changed now but worth a try. Also see if you have any relatives who will co-sign with you to get you started. Later you will have to pay to re-asign but it might be worthwhile.
#11
different lenders offer different amounts and your own bank may not necessarily be the cheapest or best option for u. so go online try a few different lenders compares stuff note down the best offers and then go see a mortgage broker/advisor they are usually free to see and see if they can do any better deals for u than the ones u find online.
#12
BigDaveH
Have u seen the Help to Buy Scheme? Borrow up to 20% of the value of your home and pay just £1 a month for the first 5 years. The figure u borrow counts towards your deposit. This can give u access to better rates and a bigger property. https://www.helptobuy.gov.uk/

This is good but you need to ideally repay a decent amount of the Government amount before the 5 years interest free period ends, it's then 1.75% I think on the amount owed then, so you could effectively end up with your main mortgage and a mini mortgage if you make little payments against the government lended figure. It does however have the benefits of giving you a 75% LTV mortgage with your 5% deposit. This of course gives you better rates but the rates are quite good anyway currently.

Edited By: loopylloyd on Mar 18, 2017 13:19
#13
Don't bother with the banks, just get a broker. You're likely to get a MUCH better deal.
#14
That extra deposit DOES make all the difference. I've just used the scheme to enable me to buy a 4 bed detached. I couldn't of otherwise and the mortgage rates were better due to the extra deposit. At the end of the day your income should have risen in 5 years and if it hasn't and u can't afford the extra, sell. This of course is ONLY AVAILABLE ON NEW BUILDS.
#15
Thanks for all your advice everyone it's really appreciated. I have my heart set on this house I've seen its just slightly out of reach at the moment. I have booked the mortgage adviser and I'll see what they say this week and will update you all on my findings as soon as I get them thank you

Post an Answer

You don't need an account to leave a response. Just enter your email address. We'll keep it private.

...OR log in with your social account

...OR comment using your social account

Thanks for your comment! Keep it up!
We just need to have a quick look and it will be live soon.
The community is happy to hear your opinion! Keep contributing!