Any mortgage advisors on here?

[rachlou83]

??

 

[booflebump]

What do you need to know about chick? A lot of the girls on here have good mortgage knowledge x

 

[anne003]

I am for a high street bank but currently on mat leave (well 2nd lot in a row) but ask away and can always ask my friend as well who is an independent broker

 

[rachlou83]

Thanks ladies.

Bit complicated but here goes...

Myself and my partner have come into some money. It's enough for a 10% deposit on a house. We want to ideally buy the rented property we are in which I think our landlord may be interested in selling to us for about £140k.

The difficulty lies with my partner and his salary. He brings home about £2,200 a month (net) which is equivilant to £36k pa (gross) but about £1,300 per month of this is commission his basic is £12.5k (!)

I've been advised by an independant mortgage advisor today to approach Santander as they will accept all of his income as earned income most lenders will only accept 50% of his total annual commission. We need to borrow c.£126k is this possible on his salary alone? He has no debts and a good probably excellent credit score.

I'm on the tail end of maternity leave and I'm not sure yet whether I am able to return to work on the basis I want. I'm about to think about negotiating my return to work next week. If me returning to work part time means we can get a mortgage I am prepared to go for it. If we don't have a cat in hells I'd rather quit work and look after my daughter. Technically we are locked into our rental agreement till 1st December so likelihood would be that we wouldn't actually be able to do anything right this second unless we came to an agreement with the landlord but I need to think about it now so I'm prepared in say 6 months time.

This is hurting my head!! Sorry if it's hurt yours to!!

 

[My_First]

In my non financial advisor opinion I would suggest the first thing you do is check the affordability of a 126k mortgage per month plus what would happen if interest rates went up could you find another few hundred if necessary? ( given where Greece currently is it is speculated that rates will rise next year) . If you think this is all good, then there is no harm applying and going through the process. Also whilst we are also with Santander don't limit yourself, see if your mortgage asvisor will offer a few options to you. To be honest if the advisor is any good they would pretty much know who he being generous at lending T the moment and who would definitely be a no no but you won't know for sure unless you apply. You could ask your advisor to do a calculation based on your oh salary alone and yours and see what gives. Also remember other costs when buying a house. Searches, solicitors fees, stamp duty of 1%. Good luck!

 

[rachlou83]

I hear what you are saying about the affordability. Ideally I'd like to fix the mortgage for as long as possible as I am sure rates are going to rise. I'm guessing that when rates do rise this is going to have an affect on house prices as well (worked in the property industry for 12 years).

Part of me thinks that maybe we should just sit back and see what happens for say another year. But I also sit here and calculate that we have spent £23k in rent over the last 4 years.

 

[My_First]

The thing by fixing the rate is its normally higher than average to stat with. I mean fixing is probably good right now, given the uk is in a double dip( I think it is). That said it is currently a buyers market house prices are relatively low and banks are lending again, albeit cautiously. The flip side, though is the more you can put down as a deposit the lower risk you become and lower rates you can request. However you can be waiting 2 years and house prices start rising again. You know what it's like with property it maybe cheaper now, but it will go up, and so will every other property too. It's all relative. It does beg the other question though what else do you do with the 14k? Property is always good in the long term and you will always pretty much get a return if you can ride out the shitty times.

 

[rachlou83]

The house I would be buying would be a home. I wouldn't view it as a cash cow/investment as such. I don't want anymore children and we would stay here for the long term.

The thing that really concerns me is not having the security of a home in old age.

It's such a difficult call right now!

 

[BunNtheOven]

Do you guys not have a 30 year fixed mortgage over in the UK? It's fixed the entire 30 years. As for your OH going alone, it should be fine. Where I live, housing prices are veryy low because of our economy. I'm about to get a 85K house(4BR, 2 BA) that sold for about 300k(it's almost in perfect condition) about 7 years ago, i'll only have 10k to put down on it though.

 

[My_First]

Do you guys not have a 30 year fixed mortgage over in the UK?

No we dont. We can normally fix it a few years, but sometimes thats even a risk becuase if rates go down you miss out, and they are normally a bit higher than the current Bank of England base rate too...

 

[BunNtheOven]

Do you guys not have a 30 year fixed mortgage over in the UK?

No we dont. We can normally fix it a few years, but sometimes thats even a risk becuase if rates go down you miss out, and they are normally a bit higher than the current Bank of England base rate too...

Oh man that blows. if it wasn't for the fixed mortgage I wouldn't be getting a house right now. Good luck, either way, i believe you will be okay to get it!