peys   10 #1 Posted August 19, 2011 Hi, me and the OH have almost saved the deposit to buy our first home.  We know what our budget is for the property and would like to get a mortgage in principle before begining to view any properties/ contacting agents.  What I would like to know is how much the mortgage company would want us to have in savings in additional to the deposit. Is there a figure they work to such as 3x mortgage repayment plus XXX etc?  I know i need to save about £2000 for fees, but how much more will the mortgage company want us to have???  Our budget will be below the FTB stamp duty threshold, so do not need to worry about that. Share this post Link to post Share on other sites Share this content via...
crookesey   555 #2 Posted August 19, 2011 Hi, me and the OH have almost saved the deposit to buy our first home. We know what our budget is for the property and would like to get a mortgage in principle before begining to view any properties/ contacting agents.  What I would like to know is how much the mortgage company would want us to have in savings in additional to the deposit. Is there a figure they work to such as 3x mortgage repayment plus XXX etc?  I know i need to save about £2000 for fees, but how much more will the mortgage company want us to have???  Our budget will be below the FTB stamp duty threshold, so do not need to worry about that.  You should be able to get a legal fees estimate, I guess circa £500.00. You will have to pay a valuation fee, say £200.00, other than for the latter you will probably be able to add any arrangement fees to the loan. If you are borrowing over 75%/80% loan to purchase you may have a MIG (Mortgage Indemnity Guarantee) to pay, check this out as these can be very expensive, between £1K & £2K.  Use a broker who offers free service, he/she will receive a small procuration fee from the lender, they earn their money by doing the best for you. They can also get you the best price on things like life cover to protect the property is one of you dies. Share this post Link to post Share on other sites Share this content via...
Jeffrey Shaw   83 #3 Posted August 19, 2011 As a first-time buyer, at least OP will not have to face the penal Stamp Duty Land Tax (if price exceeds £125 000). Share this post Link to post Share on other sites Share this content via...
peys   10 #4 Posted August 19, 2011 Thanks for info, but what would the mortgage company like us to have in savings in addition to the deposit and fees?  I have heard the look for you to have savings to the value of what it would cost you to live for at least 3months. Is that correct? How do they calculate the figure? Share this post Link to post Share on other sites Share this content via...
peys   10 #5 Posted August 19, 2011 Is it always best to use a broker? I am not sure where to look for one lol. I also plan to get quotes and find a solicitor before I view any properties. Is that something a broker would recommend? I am a bit clueless so guess I do need a broker lol Share this post Link to post Share on other sites Share this content via...
scottf   21 #6 Posted August 19, 2011 Thanks for info, but what would the mortgage company like us to have in savings in addition to the deposit and fees? I have heard the look for you to have savings to the value of what it would cost you to live for at least 3months. Is that correct? How do they calculate the figure?  We were FTB's and our mortgage company (post office/bank of ireland) didn;t ask if we had any savings.  As long as you have enough money to pay the mortgage and bills and you don't have lots of debt to repay you should be ok. Share this post Link to post Share on other sites Share this content via...
Antics^^   10 #7 Posted August 19, 2011 Is it always best to use a broker? I am not sure where to look for one lol. I also plan to get quotes and find a solicitor before I view any properties. Is that something a broker would recommend? I am a bit clueless so guess I do need a broker lol  We found that Nationwide and Halifax were the most competitive for FTB's, although it does depend on your deposit amount and property value.  Have a look at the price comparison websites (MoneySupermarket, Go Compare etc.) to get a general idea. It will give you a good idea of what your repayments will be, and any one off fees.  With regards to the solicitors get a few quotes and recommendations, we went for the middle priced option and based on family using the solicitors before.  Good luck Share this post Link to post Share on other sites Share this content via...
PINGU Â Â 10 #8 Posted August 20, 2011 they earn their money by doing the best for you. Â No, they earn money by doing the best for THEM. Â I went to a broker once who not only wanted to charge me for their service, only offered me from a limited number of mortgage providers. Â I found a better deal myself online. Moneysupermarket is as good as any or just look on the high street banks websites for the best deal. Share this post Link to post Share on other sites Share this content via...
crookesey   555 #9 Posted August 20, 2011 No, they earn money by doing the best for THEM. I went to a broker once who not only wanted to charge me for their service, only offered me from a limited number of mortgage providers.  I found a better deal myself online. Moneysupermarket is as good as any or just look on the high street banks websites for the best deal.  You may have gone to a bad broker, how many providers do you want, the top three would do me. Do you fit your own kitchens, service your own car, by the bay? Brokers are not allowed to do what you said one did to you, you can report them and if found guilty can be struck off.  I don't believe you, by the way. Share this post Link to post Share on other sites Share this content via...
Dronfielder   10 #10 Posted August 20, 2011 Hi, me and the OH have almost saved the deposit to buy our first home. We know what our budget is for the property and would like to get a mortgage in principle before begining to view any properties/ contacting agents.  What I would like to know is how much the mortgage company would want us to have in savings in additional to the deposit. Is there a figure they work to such as 3x mortgage repayment plus XXX etc?  I know i need to save about £2000 for fees, but how much more will the mortgage company want us to have???  Our budget will be below the FTB stamp duty threshold, so do not need to worry about that.  I you need some advice, send me a PM with your contact details, I am a mortgage broker with over 20 years experience. I could give you a few pointers Share this post Link to post Share on other sites Share this content via...
PINGU   10 #11 Posted August 21, 2011 You may have gone to a bad broker, how many providers do you want, the top three would do me. Do you fit your own kitchens, service your own car, by the bay? Brokers are not allowed to do what you said one did to you, you can report them and if found guilty can be struck off. I don't believe you, by the way.  I only wanted a few providers too. The ones offering the best deals. Which after doing my own research, I found.  He wanted to charge me £200. You better believe it. Share this post Link to post Share on other sites Share this content via...
peys   10 #12 Posted August 21, 2011 We were FTB's and our mortgage company (post office/bank of ireland) didn;t ask if we had any savings. As long as you have enough money to pay the mortgage and bills and you don't have lots of debt to repay you should be ok.  Really? I am quite shocked at that. I thought they would want something in saving at least, so you dont stretch yourself initially. I am planning on saving a bit anyway before applying so we have some cash for improvements/ decorating. But was just looking for a ball point figure to aim to. Its all a bit scary when you think your almost there lol Share this post Link to post Share on other sites Share this content via...