Donate to Remove ads

Got a credit card? use our Credit Card & Finance Calculators

Thanks to johnstevens77,Bhoddhisatva,scotia,Anonymous,Cornytiv34, for Donating to support the site

First Time Buyer

mortgage deals, ideas and discussion
JNC3
Posts: 28
Joined: August 1st, 2017, 2:17 pm
Been thanked: 3 times

First Time Buyer

#82137

Postby JNC3 » September 19th, 2017, 8:31 pm

My son has found his first house to buy (sale price circa £160,000) in the Midlands. He has saved about 15% of this amount in a Nationwide Help to Buy ISA and before he started looking he had a 'mortgage offer in principal' from Nationwide Building Society' . He has been employed for two years in a permanent job and earns approx £36K pa.

He needs to start the process and apply for a mortgage.

Should he just go to Nationwide and book an appointment to apply for mortgage or should he see a 'Mortgage Broker' first.

Is he likely to get a better mortgage deal elsewhere or by looking on the internet.

JNC

Clitheroekid
Lemon Quarter
Posts: 2858
Joined: November 6th, 2016, 9:58 pm
Has thanked: 1385 times
Been thanked: 3771 times

Re: First Time Buyer

#82153

Postby Clitheroekid » September 20th, 2017, 12:53 am

If I were him I'd have a look at what Nationwide were offering but then consult a mortgage broker to see if they could get a better deal.

There's some useful advice about using a broker here - https://www.moneysavingexpert.com/mortg ... s-cashback

DrBunsenHoneydew
Lemon Slice
Posts: 555
Joined: November 10th, 2016, 10:04 am
Has thanked: 65 times
Been thanked: 158 times

Re: First Time Buyer

#82295

Postby DrBunsenHoneydew » September 20th, 2017, 3:07 pm

JNC3 wrote:Is he likely to get a better mortgage deal elsewhere or by looking on the internet.

JNC

He should use an internet comparison site to arm himself with knowledge before getting into the grip of Nationwide/other advisers/brokers etc. The estate agency will have a go at getting him to use their broker I expect. Nationwide's offers for the mortgage don't look anything special to me.

AleisterCrowley
Lemon Half
Posts: 6381
Joined: November 4th, 2016, 11:35 am
Has thanked: 1880 times
Been thanked: 2026 times

Re: First Time Buyer

#82304

Postby AleisterCrowley » September 20th, 2017, 3:53 pm

JNC3 wrote:My son has found his first house to buy (sale price circa £160,000) in the Midlands. He has saved about 15% of this amount in a Nationwide Help to Buy ISA ...

JNC


Bit puzzled - how did he get £24k in a HTB ISA ?
I thought they started in late 2015 and were limited to £2,400 pa + £1k initial lump sum

DrBunsenHoneydew
Lemon Slice
Posts: 555
Joined: November 10th, 2016, 10:04 am
Has thanked: 65 times
Been thanked: 158 times

Re: First Time Buyer

#82311

Postby DrBunsenHoneydew » September 20th, 2017, 4:29 pm

AleisterCrowley wrote: Bit puzzled - how did he get £24k in a HTB ISA ?
I thought they started in late 2015 and were limited to £2,400 pa + £1k initial lump sum

It's a Nationwide "Split" Help to Buy / Cash ISA. Only part of the £15k will count for the HtB bonus.

AleisterCrowley
Lemon Half
Posts: 6381
Joined: November 4th, 2016, 11:35 am
Has thanked: 1880 times
Been thanked: 2026 times

Re: First Time Buyer

#82314

Postby AleisterCrowley » September 20th, 2017, 4:42 pm

Ah, that would explain it.
Thought i'd missed a trick...

Lootman
The full Lemon
Posts: 18681
Joined: November 4th, 2016, 3:58 pm
Has thanked: 628 times
Been thanked: 6563 times

Re: First Time Buyer

#82317

Postby Lootman » September 20th, 2017, 4:50 pm

Clitheroekid wrote:If I were him I'd have a look at what Nationwide were offering but then consult a mortgage broker to see if they could get a better deal.

Indeed. I was stunned with the mortgage deals my sons got when they applied via a broker. The older one got a loan of seven times annual income, and the younger one got a loan of six times annual income. And at decent rates too.

Now, we can debate what is a prudent multiple. But when starting out it's always a stretch. And the extra loan enabled them both to buy 4-bedroom places as a starter home, meaning that they could both rent out 3 bedrooms each, easily covering the extra mortgage cost. The younger one (28) is collecting two grand a month in rent, in London.


Return to “Mortgages”

Who is online

Users browsing this forum: No registered users and 8 guests