Anyone know anything about mortgages?

[~*Leanne*~]

as you know, we have 4 weeks until we have to move out of our rented house - we were originally going to move back with OHs parents but his mum has been very unwell and we do not feel its fair to move back in. So we have three options -

1. move into another private rented house
2. get a mortgage
3. get a Council house

the problem with renting private is that it costs too much, atm we are paying £465 for a one bedroom and we are going to need a 2 bed at least when LO comes along plus i would like, if possible, to be able to paint a nursery and you cant in the majority of private rented houses.

the problem with the Council housing is that i do not want to be shoved in an awful, rough place and unless we claim homelessness then we just have to keep 'bidding' but we are not classed as priority even though im gone 6 months pregnant and we dont have a place after 4 weeks!!!

now, with a mortgage, OHs dad said to us at the weekend he would help us out with money which would be a great help, i saw a house next to OHs uncles at £79,950 - perfect!! BUT oh wont live there becuase there is always loads of trouble and he said he doesnt want to bring our baby up there - so, his dad has seen a house for £122,950 and i have seen one today for £99,950 - BUT the thing i want to ask girls is about mortgages , i have absolutely NO idea about them

I know that you can get interest mortgages for so long - but does that apply for FTBuyers? How do i find out what the cheapest monthly repayments would be for us? etc etc i have no idea and could really do with some help girls!!!

 

[Jade&Evie]

Have you got a deposit hun? With the credit cruch it'll be harder and you'll need a solid deposi- I'd say 15-20%; maybe more as you are FT buyers. Also, if you buy now; you risk going into negative equity if the housing market crashes (which is almost inevitable)

If you do have a deposit then the council probably wont house you as you can afford to rent somewhere private.

It's a catch 22- we are stuck in it at the moment so can totally relate!

 

[jennywren]

Best idea hun is to go to an Independant Broker. If you go to one bank you would have to trawl through them all doing an interview with each one to see who will give you the best deal but a broken will take all your needs put them in to his computer and it will search all the high streets banks/BS and tell you whos are the best deals.

Mortgages are changing at the moment due to the credit crunch so there a little stricker but you should still be ok to get one. You wont get a good deal on a 100% mortgage (if you can find one) and you will find if you do manage to find one you will probably pay quite high interest. Abbey national still have on their website that they do them but apparently there not actually issuing them (i.e everyone who applies is being refused) so im not sure if you would get one through them. I think most are 90 & 95% LTV (although some are pushing for 75%) so you will need at least 5% deposit (for a mortgage) or 10% if you want more options to get a better deal.

For example Natwest offer 95% Loan To Value so on £100k mortgage for example you would need £5k deposit, probably about £1.5k Sols fees & then the product fee is £900 which you can add to the loan or pay outright so you dont pay interest on it, anyway say you pay 5% deposit that means you will be borrowing 95k and on that product it will be £643 over 25 years at current rate offer which is 6.54% fixed (thats capital & Interest) if you were to get interest only its £517 but again with them being strickt at present alot of banks are wanting proof of another repayment vechile (i.e like the old endownments) but im not sure who is strickt or how strict you would have to ask the broker what you could get away with - lots of people open an isa and set up a standing order and show the bank as proof then when they have the Mortgage just cancel the SO and never pay in to it.

bare in mind as well prices ARE dropping and you may well loose out unless your buying a home to live in for about 10 years (give time for prices to recover) so if you can hold out for a year to see whats happeneing I would (hence why were in rented were sitting it out to see what happens!)

 

[Mrs_Jay]

Id have a look on some bank websites becoz we got ours with Nationwide and you can put in all the potential figures and what options they can give you.

 

[~*Leanne*~]

i get solicitors fee's free as i work in a solicitor's and OH's dad has offered to give us in the region of £10,000-15,000 as a deposit!

 

[Jade&Evie]

i get solicitors fee's free as i work in a solicitor's and OH's dad has offered to give us in the region of £10,000-15,000 as a deposit!

My OH's parents offered the same but I said no; not until we're married Stupid mistake! My only worry was that it'd his house not ours and I'm a bit funny about that!

IMHO I would hold on about buying for a while- you will have to get a good deal on a mortgage to pay less than £500 a month; esp. at the mo.You don't need a 2 bed place just yet- baby will sleep in your room anyway for 1st few months at least.

xxx

 

[mum2be?]

hun when i went to get mortgage for our first house i went to the local estate agents where they were selling the house we liked and they had an financial advisor who went through everything with us, they will do there best to get you a mortgage as they get commisison but you dont pay them the mortgage company does.

we have a fixed rate mortgage with natwest found them very good, for 3 years fixed which payments stay the same for 3 years but you can go for 5 years or variable rate but depends on how u feel, being our first house we wanted to make sure we could afford payments so went fixed.
our mortgage deal comes to an end in dec 08 so we will be doing it all again and moving our mortgage x

hope this helps any questions just ask x i do my best to help ya

 

[~*Leanne*~]

hun when i went to get mortgage for our first house i went to the local estate agents where they were selling the house we liked and they had an financial advisor who went through everything with us, they will do there best to get you a mortgage as they get commisison but you dont pay them the mortgage company does.

we have a fixed rate mortgage with natwest found them very good, for 3 years fixed which payments stay the same for 3 years but you can go for 5 years or variable rate but depends on how u feel, being our first house we wanted to make sure we could afford payments so went fixed.
our mortgage deal comes to an end in dec 08 so we will be doing it all again and moving our mortgage x

hope this helps any questions just ask x i do my best to help ya

If you get a fixed deal can you just have the interest only deal for so long?! i found this is the cheapest atm so would be looking at interest only for so long...?!? xx

 

[mum2be?]

yer we have the repayment option but you can just pay the interest at a fixed rate.
will keep your payments down until you can get the repayment option.

 

[bunnymom1980]

If you get a fixed deal can you just have the interest only deal for so long?! i found this is the cheapest atm so would be looking at interest only for so long...?!? xx

We got an interest only fixed rate deal last year for 2 years. No one is offering interest only any more because of the credit crunch. I'm dreading our interest rate going up next year. We currently pay £467, but I'm estimating that it'll jump to about £700+, thats on a £85K mortgage.

And if you've only got 4 weeks there's no way you could buy a house anyway, it takes on average 10-16 weeks to complete on a house sale.