# First Time Buyer Mortgage advise



## rds1985 (Mar 7, 2009)

Me and the GF have been thinking on and off about buying for some time.
Now living in Brighton having left manchester I am staggered by property prices down here. I bank with HSBC and have had a look at their products as well as going on a few comparison sites etc.

Between us we earn £45,000 ish (although this may rise toaround £55,000 in the coming months when she qualifies) and could realistically get somewhere around £20-30,000 deposit together. 

Property price would be circa £180,000.

The issue I seem to be finding is that no one will offer interest only mortgages on less than 20%ish deposit. Therefore there is no way to get a mortgage for lets say £150,000 for less than £6-700pm absolute minimun.

This is around what are rent is and I am struggling to justify entering an unstable housing market unless it's going to give me more £ per month in my back pocket.

Is this something i must weigh up and am i correct in what i have said above? any advice appreciated!


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## Spuffington (Jan 26, 2009)

To be perfectly honest, no-one enters into a mortgage on the basis of what it'll save them - it invariable costs more, either in mortgage payments or bills and other overheads.

20% deposit is pretty much mandatory today, given the mistakes of lax lending in the past, leading up to the credit crunch. I'm sure there are deals out there for lower deposits, but you'll pay quite a big premium on your interest rate; taking repayments further out of your range, I'd imagine.

You need to look at property ownership as a long-term play. At least 5 years - not as a quick way of making money. Those days are gone, for now at least.

Best off visiting an Independent Financial Advisor who will have a full suite of products and comprehensive advice. Normally you won't pay anything to them until they sell you a product.

Good luck, but think carefully before you take the plunge.


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## amiller (Jan 1, 2009)

Spuffington said:


> To be perfectly honest, no-one enters into a mortgage on the basis of what it'll save them - it invariable costs more, either in mortgage payments or bills and other overheads.
> 
> 20% deposit is pretty much mandatory today, given the mistakes of lax lending in the past, leading up to the credit crunch. I'm sure there are deals out there for lower deposits, but you'll pay quite a big premium on your interest rate; taking repayments further out of your range, I'd imagine.
> 
> ...


 I agree with everything in the above comment. :thumb:


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## Nanoman (Jan 17, 2009)

Best piece of advice I can give is google 'london and country' and give them a call. You won't regret it. They'll find you the best possible deal out there rather than the best deal your IFA gets commission-wise.

It's only a phone-call and I've yet to find someone who isn't given a better deal than they'd already found even if they've been looking for weeks.


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## DiscoDriver (Oct 27, 2009)

You could consider a shared ownership scheme which are often run by local housing associations whereby you buy 50% of the house and rent the remaining half from the HA until funds allow you to buy out the remainder. Whether this is available in your area is something you would have to ascertain but it can make buying a property cheaper and the HA new builds are often very nice properties. It may well help your case if either you or your girlfriend are a 'key worker'. A quick search found this link for Brighton:

http://www.brighton-hove.gov.uk/index.cfm?request=c1000881

Good luck!


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## Silver R26 (Jul 19, 2008)

Spuffington said:


> Best off visiting an Independent Financial Advisor who will have a full suite of products and comprehensive advice. Normally you won't pay anything to them until they sell you a product.


Good advice there, I would do that before anything else.


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## Nanoman (Jan 17, 2009)

Silver R26 said:


> Good advice there, I would do that before anything else.


Strictly they're not really that independant. They're trying to make a living and are likely to be swayed by higher commissions from certain lenders etc.

I know a few IFA's and all openly admit that they will check out what's best for them before they tell you whats best for you.


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## Silver R26 (Jul 19, 2008)

grantwils said:


> Strictly they're not really that independant. They're trying to make a living and are likely to be swayed by higher commissions from certain lenders etc.
> 
> I know a few IFA's and all openly admit that they will check out what's best for them before they tell you whats best for you.


Dont disagree with that, best way is going to a couple or a few see what one offers you the best deal.


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## Nanoman (Jan 17, 2009)

Silver R26 said:


> Dont disagree with that, best way is going to a couple or a few see what one offers you the best deal.


google "london & country" for the best mortgage deals around. truly independant.


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