Mortgage advice

[Stinky Kat]

When my wife was my fiancee she lived in Marine Court, it was a really nice building, lots of oldies though so you cannot get too rowdy.

The West Hill is ok, near the old town etc but not old town prices.

Your right about the rail link, 1hr 50 mins to Charing X is madness in 21 st centry and the A21 is like a B road before you get to Pembury. Given a decent Transport infrastructure this place would boom - strange that the Department for transport has offices here and still nothing happens, could it be their top brass never comes out of Whitehall to visit?

Sea space seems to get mixed reactions from most people and I worry that too much of its funding goes on consultants who will clear off before any work is done or plans are seen as unworkable, ho hum thats Hastings though, big on ideas short on action

 

[dwayne]

Have you thought about buying a new home Rich-tea? I don't know if anyone on this site has done it but it always seems a good deal to me. I think it's Barratt that offer, stamp duty, legal fees, deposit all paid and you can move in for about a 100 quid. I think you have to take their mortgage offer (which is where you probably get stung)

 

[Uncle Spielberg]

Dwayne's right basically you can get 100% as the builders will chip in the 5% deposit to enable you to get a 95% mortgage but this will not help your level of lending from the lender.

 

[Lord Bracknell]

From http://www.findaproperty.com/agent.aspx?agentid=5160&opt=prop&pid=343307

Wellington Square, Hastings, East Sussex
*For sale by Auction. Guide price £55,000, 2 bedroom flat
FOR SALE BY AUCTION* Two bedroom leasehold top floor flat

Assume 10 per cent deposit paid up front (£5,500).

Mortgage required = £49,500.

Interest rate = 5.89 per cent

Monthly repayments (over 30 years) = £293.29

 

[Brighton Breezy]

Really? That does not sound too bad.

I am really a bit of a SPOON when it comes to mortgages and stuff and a lot of what people have been saying is greek to me.

If I was looking at a property of just over £100k with a wage of just under 15k what would be the chances? Slim I would imagine.

 

[Uncle Spielberg]

90% ftb self cert

£ 55000 purchase price
£ 5500 deposit ( 10% )
£ 49500 mortgage

30 year repayment mortgage

5.25% fixed until 3/1/08 = £ 273.34 pm

 

[Stinky Kat]

Wellington Sq sounds good, handy for Woolworths and halfway up the road to the west hill, get in there Richie

 

[Brighton Breezy]

Is leasehold advisable?

I have done some stories recently on tosser Management agents and freeholders screwing over people with increased service charges and such.

 

[Uncle Spielberg]

I could get £ 70k mortgage on an income of £ 15k with a 10% deposit

ie £ 78000 purchase price
£ 8000 deposit
£ 70000 mortgage

Going to £ 100000 purchase and £ 90000 mortgage is 6 x income and I would say this is too much of a stretch.

 

[Lord Bracknell]

£100,000 property

Assume 10 per cent deposit paid up front (£10,000).

Mortgage required = £90,000.

Interest rate = 5.89 per cent

Monthly repayments (over 30 years) = £533.25

Annual Income = £15,000 (before deductions)

Monthly Income (before deductions) = £1,250

Deduct monthly mortgage repayments (£533.25)

= You would have £716.25 a month (£165.29 a week) to pay for national insurance contributions, tax, council tax, etc etc

Note - the "etc etc" includes ALL living expenses !

But if you can afford to spend £533.25 on mortgage repayments, you'd better start saving that amount for the deposit. That will take 19 months. And you'll be paying rent as well during that period.

And, if what people say about house prices rising faster in Hastings than most other places is true, you'll probably find that a £100,000 property will cost an extra £30,000 by the time you've raised the deposit - and that will delay your purchase for another six months at least. And then you'll find that you have to borrow £120,000 over 30 years and the monthly repayments have gone up to £711.00. And if the mortgage rate increases, it'll be more. And with £711 a month to pay out, you'll only have £124 a week to cover your national insurance, tax, council tax and living expenses.

Not looking good.

 

[SK1NT]

Self Cert is not quite as simple as putting down a 10% deposit only. You still have to declare an income on the form. If you want to buy at £ 150k, the deposit ill be £ 15k and the mortgage is £ 135k. This means you will have to declare a signle income of around £ 38K or a joint income of around £ 45k.

If you are employed and earn £ 15k and declare on the form you earn £ 38k, this is called mortgage fraud and carries a prison sentence of up to 7 years.

If you are self employed it is a bit more flexible but if employed and declaring a false figure beware the FSA are watching.

you dont have to declare your income, i have set it up. Just 10 % and show u can pay off the £400 odd a month. Try Bristol and West.

 

[Lord Bracknell]

And will this house have furniture?

 

[Brighton Breezy]

Yeah quite a sobering thought.

I was looking at a two bedroom place and renting one of them out to a mate which would help considerably but still buggered I guess.

Thanks for the advice everyone. Much appreciated.

 

[Uncle Spielberg]

Did you fill in the form BB or did the broker as with B&W you do have to declare an income on the form.

 

[SK1NT]

Is leasehold advisable?

I have done some stories recently on tosser Management agents and freeholders screwing over people with increased service charges and such.

mate listen. Most flats are leasehold. Infact would be difficult to get a mortgage on a freehold flat.

Im current buying a 1 bed flat in kingston for 175K (cheapest there is up here) and yet my wages aint much difference to you.

I have a £15 K deposit, some saved by myself, parents chipped in too.

I have a mortgage of 160K Interest only (bristol and west) and my mortgage repayments will be about £400 a month. Easy Peasy.

If you buying a flat for 100K mortgage 90K with 10K deposit you'll be paying peanuts. Trust me this is the way to go for first time buyers.

These joint government schemes are not worth it. U pay half your own mortgage and also pay rent too, for the half you dont own.

 

[SK1NT]

Did you fill in the form BB or did the broker as with B&W you do have to declare an income on the form.

got its all set up through a mortgage advisor. I paid her £150 to sort it all, buti take your word for it that the form does ask for your income, but it doesn't pay any part in getting the mortgage. As long as you can pay off the repayments and in richies case 15K wwages 100K flat. Mortgage of about £300 a month, easy peasy.

 

[maffew]

I could get £ 70k mortgage on an income of £ 15k with a 10% deposit

ie £ 78000 purchase price
£ 8000 deposit
£ 70000 mortgage

Going to £ 100000 purchase and £ 90000 mortgage is 6 x income and I would say this is too much of a stretch.

yeah but you must have a dead cert due, whack the old deposit on it each way. no problem.

GG are you a mortgage advisor/broker?

 

[Uncle Spielberg]

100k flat
15 k income
90 k mortgage

6 x income.

5.89% rate = £ 441.75 pm interest only.

I personally would not want to advise anyone to borrow more than 4.5 - 4.75 x income as its too much of a stretch.

 

[jezzer]

Nearly always difficult to get first time buyers a deal, especially if single but if youve got clean credit it might be possible as suggested on here by others. We dont charge a brokerage fee so if you want some free advice give us a call, if you are paying rent that equals the likely mortgage payment some lenders can be sympathetic, just need to do budget planner to make sure you`ve covered everything.
Message to Uncle Spielberg - GMAC insistent that their Star product will make a return next year, i.e. no income declaration required, applied for FSA to approve same system as credit card applications, passed through clean cais search and affordability self cert still available with Mortgage Works. GMAC are incredible what they allow now, be steaming again from next year.

 

[Uncle Spielberg]

Agreed

Non Status - GMAC star was good as were TMW but I can't see the FSA allowing non status back in view of their spotlight on self certs and there stance on proving affordability , we'll see.