weenireeni Posted October 9, 2006 Share Posted October 9, 2006 Ok, me and me boyfriend are looking to buy a house some time next year. He's been busy saving up, but Im just wondering how much we should realistically save up for? Ive tried various mortgage calculators and they all quote us different amounts we could borrow. Also my boyfriend has a base rate salary, yet doubles that with overtime, we've discovered that HSBC take that into account, as he works for them. plus we should get the lowest mortgage rates available. We're hoping to buy a house for £120k. Another thing is i have poor credit rating, will this affect getting a mortgage? i am taking steps to improve my rating, and ive always had a regulr income. well ive waffled on now, but can anyone help with costs etc? i dont want to have my heart set on buyng in april, if we cant afford it for another year :help: Link to comment Share on other sites More sharing options...
joeyannie Posted October 9, 2006 Share Posted October 9, 2006 save as much as you can for a deposit and legal fees, and work out realistically what monthly repayments you can afford from your salaries after allowing for bills, council tax etc and still be able to have a life. Get independant mortgage advice. I can recommend simplicity financial (simplicityfinancial.com) who have been looking after me for 6 years and have done a great job for me. You dont have to sign up for anything, it'll just give you a feel of what is best for you. Whatever you do dont buy a house that you cant afford to easily make the payments on...remember that changes in the interest rates of the bank of england will affect your repayments so dont buy at the very top of your budget! as for your credit rating, not sure how that will work against you, but a financial adviser can help you with that as well and may suggest that the mortgage can be taken out in your boyfriends name alone to eliminate any negative effect of your rating. good luck! Link to comment Share on other sites More sharing options...
*Turbo* Posted October 9, 2006 Share Posted October 9, 2006 How bad is your credit rating? Could have an impact on much you can afford per months as interest rates are higher for adverse. If you like PM me some details and i'll have a quick look. Link to comment Share on other sites More sharing options...
weenireeni Posted October 9, 2006 Author Share Posted October 9, 2006 have pmd you joeyannie, if the mortgage was in his name only, would my salary be taken into account or not?? Link to comment Share on other sites More sharing options...
Skatiechik Posted October 9, 2006 Share Posted October 9, 2006 Your better having a 10% deposit or greater for the best mortgage rates. For borrowing amount probably about 2.5 times his salary. I doubt most companies will take the overtime into account as in their eyes it isn't guarenteed. Take a look around at different mortgages and try to decide what will suit you best. Link to comment Share on other sites More sharing options...
Tomataheeed Posted October 9, 2006 Share Posted October 9, 2006 Ok, me and me boyfriend are looking to buy a house some time next year. He's been busy saving up, but Im just wondering how much we should realistically save up for? Ive tried various mortgage calculators and they all quote us different amounts we could borrow. Also my boyfriend has a base rate salary, yet doubles that with overtime, we've discovered that HSBC take that into account, as he works for them. plus we should get the lowest mortgage rates available. We're hoping to buy a house for £120k. Another thing is i have poor credit rating, will this affect getting a mortgage? i am taking steps to improve my rating, and ive always had a regulr income. well ive waffled on now, but can anyone help with costs etc? i dont want to have my heart set on buyng in april, if we cant afford it for another year :help: If you can manage to save just over 20% of the purchase price you will avoid mortgage imdemnity fees. I also think that you will find it easier to borrow the cash in that the lenders risks are much reduced... the more you save, the less the risk. If you save up 50% for instance no one gives a hoot what your credit rating is, as the risk to them is virtually nil. If however you intend to borrow 95%, they will be through your finances with a fine toothcomb. Link to comment Share on other sites More sharing options...
Cyclone Posted October 9, 2006 Share Posted October 9, 2006 No, if it's not in your name then your salary cannot be considered. And yes, if you have a bad credit rating it will affect the types of mortgage offered, the interest rate and whether they offer you one at all. Taking out a joint mortgage will also link your boyfriends credit to yours, so he might start finding other affects after you've got a mortgage. Deposit wise, you'd be wise to be able to put down at least 10% as a deposit, and legal fees/other costs are likely to be in the order of several thousand on top of that. The important thing is to make sure that you don't over commit. It's all well and good taking your bf's overtime into account, but think about possible scenarios, ie having a month off sick for a broken leg, i'd ensure that you can pay the mortgage without the overtime. If you are borrowing towards the top of your range, then i'd suggest looking at fixed interest mortgages, as that way you can't get any nasty surprises if the interest rate changes. Link to comment Share on other sites More sharing options...
weenireeni Posted October 9, 2006 Author Share Posted October 9, 2006 thanks cyclone. due to the nature of his work, he is guaranteed overtime as he is on call, so thats why we wanted to try and incorporate that. though he is due a payrise, so might not need to include it. so we need 10%, plus couple of grand for fees etc?? well, at least i know!! Link to comment Share on other sites More sharing options...
alou Posted October 9, 2006 Share Posted October 9, 2006 Me and my fella just bought a house. We didnt bother saving for the deposit, because by the time we would have had enough for 5% the house prices would have gone up. We didnt even save for the legal fees (thankfully my mum gave us a loan). So we had 100% mortgage (a graduate one from HSBC), we can just about afford it, and as it is fixed for three years it doesn't matter so much if interest rates go up (for now obviously!). Our legal fees were around £1000, then there is the mortgage admin fee (depends on your lender; which you can either pay up front or they will add it in to your mortgage and the interest rate will be higher). There is stamp duty if you go over £125,000 (at 1%). My advise would be go to your bank and see how much they will lend you. We used online calculators, and some said a lot less than what we managed to get. And some even said way way way more! We went in the end for what we could afford each month without stretching ourselves too much. good luck Link to comment Share on other sites More sharing options...
bendus2 Posted October 9, 2006 Share Posted October 9, 2006 Try contacting Damian Flynn Mortgages. Can get Damian on 07973 238515 Link to comment Share on other sites More sharing options...
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