Getting a mortgage - FTB

**northernladuk** · 20 January 2012, 01:34

Originally posted by NorthWestPerm2Contr View Post

Has anybody tried this route or found any other route to be preferable? High street banks are useless as they ask for income rather than looking at your rate, so I am thinking that's not worth trying anymore?

The 2 years accounts is a bit misleading and if you speak to them telling them your situation and that your accountant can prove your worth they will ask his details and contact him direct. I was quite surprised the lady on the phone didn't bat an eye lid. Even if it isn't 2 years exactly they will be satisfied with as much as you have and your perm before that. Last time I did this both Halifax and I think RBS went ahead without a pause for breath. This was before the recession hit to be fair. I also seem to remember the Halifax would give you a punt on your rate at one time. Anyway, they are wise enough to be able to work out your income from your wage so can't pull the wool over their eyes.

I don't think you need to look around for anything special. Check the moneysupermarket pages, research what they got on there and give them a bell

10-15% isn't very good in this day mind. Could do with more than that to get a decent rate.

Got to ask why you want a £250K house as a first pad and also in the North West that is quite a way up the chain? Don't know which area you are in though.

IMO you are better off thinking about your first house as an investment. Get yourself a nice flat conversion if they are cheap enough or small 2 bed house with a mind to using it as a BTL once you get on your feet. If you go for a decent 250K small family home you might find it isn't quite as let'able as something for a young couple would be.

With something a little cheaper and smaller you get a much better rate due to a higher LTV rate and some thing that will be a tidy investment when you move on.

The style of house is IMHO of course. It's your home at the end of the day.

**NorthWestPerm2Contr** · 20 January 2012, 09:04

Cheers for your advice. I am staying put in a cheap rental place until I can afford a house of a certain size for family reasons. 250k is a lot but not if your looking in high demand areas with the best schools (think Sale/Alty etc). Unfortunately I am no longer at the stage of being able to buy a small house only to look for a larger house a few years later, the recession came at such a time for me that made it impossible to buy anything for the last few years anyway....

**Waldorf** · 20 January 2012, 09:12

Ensure that you will have two years accounts when you are ready to move, I assume that your year end is April, so ensure that your accountant gets the accounts prepared asap.

Have a look at an offset mortgage, you should be able to stick a pile of cash over the coming years and this gives you the benefit of having access to the cash in case you need it and reducing the amount of interest that you are paying.

**TestMangler** · 20 January 2012, 10:31

What NLUK said.

The last two mortgage applications I made were no different to a permmie mortgage application.

Building Society went to accountant instead of employer for POI.

A lot of people seem to make this more complicated than it has to be.

Just do it and stop fannying around

**northernladuk** · 20 January 2012, 10:42

Originally posted by NorthWestPerm2Contr View Post

Cheers for your advice. I am staying put in a cheap rental place until I can afford a house of a certain size for family reasons. 250k is a lot but not if your looking in high demand areas with the best schools (think Sale/Alty etc). Unfortunately I am no longer at the stage of being able to buy a small house only to look for a larger house a few years later, the recession came at such a time for me that made it impossible to buy anything for the last few years anyway....

Ahhh, I understand. I did it the other way round and bought cheap on edge of Salford, saved and moved as soon as I could, keeping the house to let out but had no family concerns. Get you on the pricing in that area as well... Ouch...

You are still below the average age of a new house buyer and £250K is considerable more than the average so still in a very good position. The number of houses I see for sale round there I am sure there are a lot of people downsizing or moving areas so am sure if you are not that fussy you can offer much lower and grab a bargain as well!! Just a shame you can't bag the best deal with your LTV

**MrRobin** · 20 January 2012, 10:52

Don't forget that as a FTB your SDLT rate is 0% for purchases up to £250k but only until 24th March, so use it while you can!

**Spacecadet** · 20 January 2012, 10:53

Had the same problem when we got our place, had 10% deposit so got a really crap rate.
3 years on and had done a bit of work to the house and saved up to push the equity to over 20%. Since the original tie period was now over this allowed me to go out and get the lowest rate mortgage on the market, I kept the payments the same though and the different in rate means that I halved the length of the mortgage term!

Have you compared what your mortgage payments will be with a decent rental in the area? Might be financially worthwhile renting a decent house in the area for 2-3 years and then buying with a much larger deposit.

**NorthWestPerm2Contr** · 20 January 2012, 11:21

Originally posted by TestMangler View Post

What NLUK said.

The last two mortgage applications I made were no different to a permmie mortgage application.

Building Society went to accountant instead of employer for POI.

A lot of people seem to make this more complicated than it has to be.

Just do it and stop fannying around

Really? In this current market? Once you have already bought I am assuming it is a lot easier. When I spoke to my bank they were worse than useless, made me almost lose hope of buying. They said they would only go off income - anybody had direct experience with any branches in the south manchester area who are not stupid idiots?

**Old Greg** · 20 January 2012, 11:35

Originally posted by NorthWestPerm2Contr View Post

Really? In this current market? Once you have already bought I am assuming it is a lot easier. When I spoke to my bank they were worse than useless, made me almost lose hope of buying. They said they would only go off income - anybody had direct experience with any branches in the south manchester area who are not stupid idiots?

Speak to contractor money.

Getting a mortgage - FTB