Starting a job with deloitte in sept and will be on roughly 21K a year, but will be rising once I start to pass exams.

Any ideas what sort of mortgage I could be getting with this salary (due to dead relatives i’ve got enough for a decent sized deposit). My dad has also said that he would be able to act as a guarantor on the mortgage, which will apparently increase the amount I could be loaned.

Cheers,
J

moneysavingexpert.com

I’d be asking an independent financial advisor

I’m not one, but you may get 3x your salary (as a rough guide), well that’s what I got anyway, it all depends on your circumstances

Jammy – if you want to chat through your situation give me a bell on Monday – no obligation, I’ll just give you an idea of what you’ll be able to afford/be offered a lender. Contact details on my website which is in my profile.

£68 – 84k, although the size of your deposit, terms and duration will affect this

you meet a man who pretends to be your best freind, you give him some money, and he tells you which mortgage comapny is best(or which is paying him most commision), you then borrow that money and buy a house, and for the next 25 years plus you pay it back, if at any time due to no fault of youres you dont or cant pay, the house is taken off you and sold.

You loose all the money youve paid so far, and also get chased for all the money the company thought /knew they where going to get off you.

You then become bitter and come on here and ask for advice.

I have 2 comments:

1) Why do you want to buy a place?
The property market is going nowhere other than to stagnate or possibly dive for the foreseeable future and there is even a glut of rental properties around my neck of the woods in Cambridge where stuff has often been snapped up by students until the market hit saturation point

2) Why do you need help with this if you decide you really do want to buy? There are plenty of websites that will give you access to mortgage calculators and planners.

No offence to the financial guy who offered help but you can do it all yourself with a bit of work
He will prob say he can get you a better deal and if so good luck
But I would always wonder who pays the wages of the middle men 🙂

Cheers

mortgages are cheaper than rent over 25 years hard to see how any mortgage will be worse than any renting scenario even if the house if worth £5 at the end of the mortgage it will have been cheaper than renting
60-80k but wait till you are settled in the job what of it is rubbish and you want to leave but cant due to a mortgage etc

As above, rent is the way to go, find a decent landlord and property, pay the rent and youll have no maintance bills, and if you lose your job, housing benefit may pick up the bill.

also idf tyou borrow money to mortgage, dont forget the maintance charges,breakdowns of heating and plumbing, drains, building insurance and more.

yes renting saves you money and landlords do it as some sort of social duty it is philanthropy really and no landlord makes money out of it so it must be cheaper to rent obviously.

london and country mortgage brokers.

sorted me out really well, so well that i recommended them to my folks – my parents and my brother have both used them, as have several friends of mine.

free, independant and they cover the whole of the market. pretty sure there are couple of laws which guarantee their impartiality.

i have no connection to them other than being a satisfied customer.

Dave

yes renting saves you money and landlords do it as some sort of social duty it is philanthropy really and no landlord makes money out of it so it must be cheaper to rent obviously.

😀

Having said that, there’s no harm in renting until you’re a bit more stable/sure of your job/prospects/likelhood of staying in the area etc etc. Not wanting to patronise but a mortgage is a pretty big commitment to a job/area

edit – I think that was patronsing after all wasn’t it 😳 IGMC

Junkyard – Member
yes renting saves you money and landlords do it as some sort of social duty it is philanthropy really and no landlord makes money out of it so it must be cheaper to rent obviously.

😆

God loves landlords!

time for a series of my thoughts to be written down. apologies in advance…

right time to explain further. I just wanted a rough idea of potential mortgage size as i’m trying to decide what to do. i can rent, but then that seems like throwing money away when it could be used to pay towards the value of a house. house prices seem low at the moment, and i thought they were due to be picking up in the next few years. If i buy a house i will be able to let out a room (or two if i can afford one big enough) to a friend(s) which will help to pay towards the mortgage. Ill be in the area for a least 3 years as its that long until i get qualified. deposit can potentially be in the region of 50K. from quick searches on tinternet id be looking at something in the region of 140-160k for a flat in an area I want to live in. renting a similar property is about 600 per month.

Is getting a mortgage of that size going to be possible with said deposit, wage and the parents acting as guarantors?

EDIT: oh and wage should be in the region of 35k after 3 years so long as exams are passed if this would affect it in any way?

J, I’d second the advise to speak to Financial Advisors (plural). A good one will be able to narrow down the options rathen than push one on you. Took us three goes to find a great one and have now stuck with him and whilst it probably wasn’t the rock bottom cheapest route initially he’s saved me a lot of time and effort on a subject I’m not expert on and have no desire to be expert on . Furthermore after two house purchases and various re-mortgaging processes with him I’m convinced our chaps advice and contacts have let us steer a really good path and almost certainly have saved us money. (I reckon he should be paying me for these words!).

@Jammie

If you’re only looking at this from a 3 year spective then renting is the way to go. Also your job with Deloitte is only secure if you keep passing exams, if you fail one then you could be out of a job.

Owning a house is a big decision and will tie you down for a very long time, and the costs of renting are the same as interest payments on a mortgage, so there is no real difference between them except for increases in house prices, but dont count on that for another 3-5 years.

Your only young once, and you dont know what life will bring before you are 30. Fantastic job in Whistler, amazing sweedish girlfreind in Helsinki, but if you get a mortgage you might not be able to persue these as you have a debt to pay back.

Ah, the guaranteed career path.
I’d think a bit more about that if I was you, I assume you’ll be in London? If that’s your budget you’ll get a nice 1 bed in Zone 4 or something bigger in Southend.

not in london, way oop north in newcastle. would be looking at a 2 bed tyneside flat or similar…

Get the mortgage if you can and rent out a room to a mate if you can stand living with someone else. If your job takes you elsewhere, rent it out. If you can do this for long enough you will have some extra money to dump into a pension or whatever when you come to sell the flat. Renting does have advantages but there’s no point in paying off someone’s mortgage for them if you don’t have to.

renting is pointless if you are settled but it has advantages if you are not. I would not be taking the size of risk you seem keen on 50K deposit + 100% ish mortgage. what is you hate the job or fail some exams.
You need to rent a room constantly to afford the mortgage at current rates which are a historical low rate.
Cheaper starter home??? and then let out when you reach 35K and buy the home you want using equity from house ???? See an adviser and evaluate your short term and long term options.

Social landlords /housing assosiations do exist and dont charge high rents etc.

So oure going to do basicly a training course, while employed by a company, who at any time may sack you or make you redundant if you fail to live up to expectations , then theres wil you be able to work for the comapny, do you actualy want to, or NEED to to pay the mortgage, rent a room is fine until someone fails to pay, or because theyre a freind think it should be half price after a few weeks.

Rent for 3 years, then get a mortgage possibly.

In 3 years time tou may well be working transferred to india, ior china, as most other jobs are going there.