I need to get a mortgage in principal what is the easiest way?

I have spoken to a couple of people who run brooking services and they reckon I can borrow upto £45,000 but I have seen a couple of flats for less than £40k.

I am thinking about viewing them but I would need a mortgage in principal.

I would need a self cert mortgage so high streets are not an option.

Also I won't be able to quite raise the deposit until my parents sell their house. (They owe me money).

If I get turned down for a mortgage in principal would that affect my ability to apply for future mortgages? The problem is I have no credit history as such. I have a good relationship with both my banks but thats it [ie no unauthorised debts].

 

If you have a good relationships with your bank(s) you could always approach them first. They may be able to provide a reference for you or suggest some options etc.

 

Go and see a mortgage advisor. I can give you the contact details of the one I used (he's based in Delph) if you want. They will be able to advise you and give you answers better than anyone here (unless we have some mortgage advisors here, I don't know...).

As for a few quick answers... yes, if you apply and are turned down that may affect things in future, but only for a certain time period (can't remember if it's a year or two, maybe slightly more).

The more you can put toward a deposit, the more likely you are to get the mortgage amount you want. As far as the mortgage company is concerned, it's simple... they need to be able to get their money back if they have to repossess the house and sell it. The more you've put in then the more sheltered they are against market crashes, etc. Obviously it's not easy to just come up with a pile of cash just like that though.

 

I have always found there is no such thing as a good relationship with a bank. At best they are not shafting you at this moment.

Seriously, banks seem to be competitive and it might be worth having an 'off the record chat' with the bank mortgage advisor. I am sure you will get a mortgage through a broker, but watch out for the interest rate. Some of the lenders/brokers also charge an arrangement fee which can be pretty steep. Basically, if you do not have a track record there are alot of people out there who will take advantage.

Rod

 

You're too young to have a mortgage. Wait until you're at least 30. You should be wasting your life (and your money) in your 20s.

-- Ian

 

yes. seeing the world - open your horizons.

return to manchester as an older man, and then see it in a whole new light.

bum around America or Europe with no money, working in bars or whatever - instead of living the same life in Manchester!

 

House prices have tripled in the past 10 years and I think certain parts of Manchester they have in the past 5. I am worried if I wait I would never ever be able to get on the property ladder. You're right in one way though, if it wasn't for that I would never consider getting a mortgage. I am 24 so I am not exactly that young now either.

 

That's not how everyone chooses to live their life. To each their own.

AT - be sure also that you actually WANT to live in the sort of place you're talking about. Getting yourself tied down to a pokey flat in a nasty area is not a good plan. If you can't afford somewhere that you'll be genuinely happy with over the longer term then hold off, save up. Also look at other possibilities, such as shared buying or taking a lodger (which I'm about to do). Some mortgage companies will extend a mortgage on the basis of you having a lodger and taking account of the income from that.

 

Yeah this is a major issue, I am hoping in 6 months time I should be able to buy somthing a bit better but I have to hope my earnings increase much greater than house prices. My mate said he would buy with me if it was a decent area but then you're talking £150k+ for even a two bed flat.

The problem I have is my parents are selling due to my dads accident which means there will be so space for me, so I would either have to buy in an iffy area or rent something better in a nice place.

 

House prices have been steadily rising, along with prices of every other commodity, since the invention of the market economy. Don't get suckered into thinking you need to take on a huge debt just to get on the property ladder. 24 is no age at all to be lumbered with a massive loan. One of the things that's fuelling the current absurdity is people thinking they must take out enormous mortgages or else something terrible will happen to them financially later in life. It's a mirage, and it's going to lead to severe debt problems for many in near future. There is a shortage of affordable housing, but there's no sensible reason for buying a crap flat in a shithole out of some misguided desire to get on "the property ladder".

I've got a few cans of beer in the fridge. The fact that they cost more than they would have in 1995 is neither here nor there.

-- Ian

 

Wise words, don't get caught up in the hysteria. Don't be afraid to rent at your age as it's actually not "dead money" as most people like to say (generally landlords ). I allows you the feedom to move about and manoeuvre yourself into the right position to actually buy somthing you want. Just make sure you are saving money each year you are renting and don't piss it all away.

Give it five years as the property market could be very different then. It may well be LESS affordable by then, but you never know which way things will go.

p.s. I didn't buy my first house until I was 32 but made sure I saved a little bit each year.

 

My business won't be there when I get back though : However I do take frequent mini trips when I can and a mortgage will affect me having fun.

Hopefully I should be earning a lot more in a few years time. I might try and looking into housing associations as they have some small flats in decent areas for very reasonable money.

All I know is I need to move out because its getting very hard having a secret girlfriend and living with your parents as you can imagine

 

Many analysts consider a price adjustment is on the doorstep. This could leave you overexposed if you bought at an inflated price now. Naturally there are other indicators which suggest the opposite.

I'd echo Ian's sentiments regards the stage of your life and also that buying now simply due to fear of being left out in the cold is not advisable.

 

Secret girlfriend good, imaginary girlfriend not so good but for a lad of your age it is quite normal

Rising house prices can be a bit frightening for the prospective first time buyer but as pointed out a few posts ago renting is a path worthy of consideration. IIRC in most parts of Europe renting is considered the norm at least until the urge to start a family becomes too strong to resist. This may be an unfashionabe view to hold but IMHO the great race to own homes rather than renting can for the most part be traced back to the share owning, property owning dream started by Mrs T during the middle to late 80s. But things may be changing with some people expressing the need to get out and see the world be it by an extended gap year or an unexpected gap between ending further education and securing the job of your dreams or indeed any job at all.

AT, other choices exist and you owe it to yourself to explore them fully rather than dismissing them out of hand.

 

Thanks so do you reckon the best thing is to rent for now? I've seen some nice 1 bed flats for £80 a week including bills near to where my business is based.

 

AT,
I expect some of your reasons to leave home are to spend more time with your girlfriend, gain independence and have a bit of money left over at the end of the month. Well for £80 a week I reckon that renting looks a good way to do all of that.

 

rent for 80 quid a week - then you've more time to spend with your lady - a no brainer IMO...

holding hands while walking down the road is old hat - but the back seat of a motor is fun...

 

IMHO we're looking forward to another housing crash....look to the USA...we're normally not far behind. Interest rates on the up, inflation on the up (think heating & petrol increases), many/most people mortgaged to the hilt & borrowing on cards left right & center (how many people do you know who have not remortgaged in the last few years - assuming they have a mortgage...;-) - & blown it on a new car, or 'improvements', or a holiday etc etc.) I reckon it's all going to come tumbling down in the not to distant future....IMHO, DYOR etc etc

....so how about go get yourself to India or Thailand for a while... £80 p.w will see you living in luxury.....but I'd suggest live cheaper & enjoy the experience for longer... ;-). Thought you were talking about jacking the business in last week?

 

October was the best month ever for my business profits nearly reached a four digit figure (not bad since its still less than a year old and I am the only employee and it has virtually no running costs).

I am actually in the process of setting up another business which is nothing to with IT or technology, the idea being to spread my risk.

 

£80/week would barely cover the "running costs" of owning your own house. By that I mean all the insurance, unforseen maintenance, etc. that adds up to an amazing amount.

Anyway, that would be you landlords problem if you are renting