Mortgage

[dmh9282]

I need advice.   I'm 23 been living at home with my parents in Northern Ireland all my life, except for a short year in England.   Recently I've been interested in buying a house (or something with a roof at least).  I've asked my Dad for advice but he isn't forthcoming and he tells me not to bother.  I believe I can make a go of it.  

What do I do to go about finding out about a Mortgage.  How do you work it out from your annual salary,  is that before or after tax.  Anything else that will help me would be greatly appreciated.

[kaddi]

Why dont you go and see an independant mortgage (financial) adviser?  they normally do not charge for this service or if they do its minimal as they are paid when the mortgage is secured.  Most banks etc offer an advice service too to make sure you get as much information before you make any snap decisions!

[stevie21]

Mortgage advisors are now required to really interrogate you about your finances so if you do go to speak to one of them, expect to be asked how much money you currently earn, spend on bills, socialising etc. and also for the types of property that you're interested in try to get an idea of how much they would cost to insure, pay council tax, bills etc. in.

If getting a mortgage is more than just a whim (no offence, I'm thinking more of the many whims that I have rather than my expectation of you!) then you should really do a bit of homework on your own first and expect to spend months learning about all of this before actually committing to buying a house.


Normally, a lender will expect you to have a deposit of at least 5% (preferrably 10%), enough cash for legal fees and surveys and will tend to lend you 3 times your salary before tax. You may also have the option of having your parents as guarantors in which case they'll be recommended to seek independent legal advice. It's not all fun and games this mortgage business!

[5029]

Go to the One Stop Mortgage Shop (there is one adjacent to the city hall in belfast, look them up on yell.com for a nearer one).

 

They will take your income and savings and projected income into account and will give you a free consultation and unbiased information on the best mortgages available (unlike banks who will try and sell you theirs!)

 

Good luck!

[Scarlett]

You can be lent 3 times your salary, providing you have proof and a good credit rating. Assuming you can find anything (with a roof) for this amount, you are then bound to it for 25 years, or however long the loan is for. You won't be able to move out when you feel like it, you will either have the burden of letting it out and being a landlord, or you will have to wait for someone else to buy it. You will need to spend a great deal on upkeep, repairs, decorating etc as well as paying your own council tax, water rates, gas and electric, phone bills, buildings and contents insurance etc... I bought mine 2 years ago, and had to have a 5% deposit which was �4000 on a �79,000 flat. whilst I am pleased with my achievement (I have done it all up from scratch too!) it is a burden. I want to travel and do an MA in another town, and the mortage is the only thing slowing me down. I have also been ill, and paying the bills and mortgage has been a real worry. I would think hard about whether you really want the responsibility yet. It also ties you to your job- if you decide you hate it, you can't just leave and stay at your parents until you get a new job, you have to keep going. I am glad I have my own place, but there are definitely downsides- plus I am 10 years older than you!

[5029]

3 times your salary is what they used to lend, now they just lend what they think you can pay back, up to 5 times your salary, as 3 times would not enable you to buy something decent with house prices rising

[Scarlett]

I borrowed 3 times my salary, and on �75,000 I pay �560 a month back. So, do bear in mind that if you borrow more than that, your monthly repayments will be more than mine too. It is a lot of money.(And most of that repayment is just interest).