Buying your own property in London

[Gods Son]

 

Anybody that lives in council/ social housing should consider exercising their Right To Buy. At the moment discounts as high as £100k. just purchased my property from the council, No deposit at 50% of the valuation price.

 

Just to add your credit does not have to be impeccable for you to get a mortgage. I had 2 defaults and my mortgage went through swiftly with no real drama. a Mortgage advisor  will tell you they are so many different factors to consider when trying to mortgage a house i.e Deposit, Loan to Value Rate, Affordability , Dependants etc etc . End of the day banks make a lot of profit from mortgages so turning everybody down for every little things makes no sense at all. As long as they feel you can afford it they will sell it to you.

 

http://mortgageadvisers.which.co.uk/ Are good. Give you free advice find you a mortgage they feel you can get. Only get charged when your ready to make the application for the mortgage which they do on your behalf cost me £99 but I think its £200 now.

 

How much deposit did you put down?

 

I am guessing it was quite high for your defaults to not be a factor

 

I basically have the same and a mortgage advisor told me to go away, clear it off then wait a year before trying....

 

No Deposit Didn’t need one. Loan To Value Ratio is 50%, which is probably why defaults got overlooked. Also with the Ratio being that low you also get better Interest rates (Mines 2.35%)

 

All you need to pay for is your legal fees also know as the conveyancing

[Sole]

i think its disgraceful poor people in council blocks should get such massive discounts

makes me SICK

I bet it does

My girls flat will be ready soon...

[Guest 90210]

deposit isnt the issue its the mortgage repayment

[TF S4DK]

WTF.

 

Stay at home living with mum.

[Captain Planet]

i think its disgraceful poor people in council blocks should get such massive discounts

makes me SICK

I bet it does

My girls flat will be ready soon...

Also banking on di wifey

[Flex]

Having a bigger deposit won't change how lenient they are with the credit scoring, as I think was implied in a few posts on the last page.

Some missed payments can be overlooked if a one off and not recent.

[Sole]

Those who know about right to buy do u lose the right if you do a house swap?

As in would you have to start all over again?

Always thought you would but my girl was contacted by a guy who wanted to swap because he had right to buy but couldn't afford his place and wanted to swap with our flat so he could buy ours instead as it would be cheaper,

turns out ours is worth more than his so it never happened but I always wondered if that would have even been able to run.

[seven]

Nah, know a guy who knows a guy who basically found the mortgage, sent the application etc.

Would normally charge a fee but that was waived.

Got an approved Decision In Principle that allowed me to offer on the house, then the survey would be carried out.

Once that's done we would have looked to exchange soon after

I know that guy still

[seven]

i think its disgraceful poor people in council blocks should get such massive discounts

makes me SICK

I bet it does

My girls flat will be ready soon...

And so will I...

[Mr Invincible 49]

Alot of fraff being talked about in this thread.

 

I bought my first property in November 2013 so can give you the low down 1st hand. I bought a 1 bedroom flat in South London (Zone 2) within a 3 min walk from the Northen Line.

 

Flat was originally on the market for £285k but was able to get it down to £250k as i was a first time buyer with no chain and was ready to go ASAP (the seller wanted a quick sell as she was moving to USA and the previous person who was going to buy the flat messed around and wasted a few months of her time).

 

1. I would advise looking for properties under £250k. The rise in stamp duty is a killer and it is not really worth it unless you are going to get a property over £350k or so.
2. Go to a Mortgage broker and seek advice. Normally they charge you a fee (around £1k) to find a mortgage BUT they only charge you once the mortgage is approved and finalized. You can go to them and stunt like you wanna use them. They will give you examples of mortgages you can have etc and banks that will be best for you. Then all you do is go to them bank directly and not go via the mortgage broker and that way you save the broker fee. Luckily the bank i work for has a deal with a mortgage broker so my company paid my broker fee for me.
3. Please remember you deposit means nothing on its own.... you have to have a good income as well. Normally the amount you can borrow is 4/5 times your salary. So in my case i was on £45k last summer when i applied for my mortgage plus i had a deposit of £50k. 4.5 x £45k = roughly £200k mortgage they would lend me PLUS my £50k deposit which means i was looking for properties around £250k (which was ideal for me cos that was my limit due to stamp duty).
4. this worked out as a 20% deposit (80% LTV) which meant my interest rates were decent. I went for a 2 year fixed interest rate mortgage and the good thing about the broker that got me my mortgage is that they will help me remortgage in 2 years when the fixed interest rate period is over.
5. I pay £800 a month (repayment) on Mortgage and to rent the same property would cost me around £1200 a month so when i eventually come to renting my property out i will be making a tidy sum per month.

If anyone has any questions PM me cos i know it can be a daunting task for 1st time buyers but the information is out there.... we just need to know where to go.

 

Makes me smile to see how this forum has progressed from teenagers talking about grime to home owners....

 

Cool Story Bro

[Yoshie]

For a 200k mortgage with 800 repayments a month, you must have stretched that out over a long time?

Mine was a 184k mortgage on a 195 property over 30 years and that was still £1100 a month.

[Mr Invincible 49]

35 Years.

3.1% Interest Rate

[Yoshie]

35 Years.

3.1% Interest Rate

 

With what lender?

[Mr Invincible 49]

Santander.

 

When you look at the break down of your repayment... The interest is disgusting... Makes me die a little inside when i think how much money you spend on Interest over the course of the mortgage.... But its the price you pay for home ownership....

 

Its only cos i want to leave something behind for my Kids... Have a house in London in 30/40 years fully paid off for will leave my Kids in good shape financially.... otherwise i would be happy to pay the premium and rent but keep the flexibility in my life.

[TF S4DK]

30-35 years lol.

 

I hope you lot are trying to pay off that extra 10% a year in these low bank rate years, cos when they are over you might regret it.

[Yoshie]

Mine was 30 years as it was 2 year fixed (5%)

Then I'd be able to put it onto variable which was 3.x% and I'd fix that over however many years I'd be able to afford.

[Guest 90210]

thats what im saying.... having a deposit alone means shit you need to be on an income greater than £35k as well

[Guest Chelsea Jack]

surely you will be on that as a high flying investment banker in canary wharf, no?

[Guest 90210]

i can make 35k a year in commission on my basic but that is not my basic so when factoring in that lenders dont really like that

 

they would rather much lend to someone who is on a 35k basic + commission

[TF S4DK]

Come on guys! Displaying the ability to pay your mortgage has always been required, it's always been the number 1 thing.

 

My point was being able to do that, and a deposit, you won't get hampered by a slightly tarnished credit file.

[TF S4DK]

i can make 35k a year in commission on my basic but that is not my basic so when factoring in that lenders dont really like that

 

they would rather much lend to someone who is on a 35k basic + commission

 

Can make or do make?

 

Your commission can be factored in, but yes it would be more ideal having it the other way round.

 

But the simple solution would be to stay at home, continue to save your commission, use that for the deposit and take a lower loan, which is harder in the now but a very good look in the latter.

[Guest Chelsea Jack]

 

i can make 35k a year in commission on my basic but that is not my basic so when factoring in that lenders dont really like that

 

they would rather much lend to someone who is on a 35k basic + commission

 

Can make or do make?

 

Your commission can be factored in, but yes it would be more ideal having it the other way round.

 

But the simple solution would be to stay at home, continue to save your commission, use that for the deposit and take a lower loan, which is harder in the now but a very good look in the latter.

 

 

 

i can make 35k a year in commission on my basic but that is not my basic so when factoring in that lenders dont really like that

 

they would rather much lend to someone who is on a 35k basic + commission

 

Can make or do make?

 

Your commission can be factored in, but yes it would be more ideal having it the other way round.

 

But the simple solution would be to stay at home, continue to save your commission, use that for the deposit and take a lower loan, which is harder in the now but a very good look in the latter.

 

 

c/s

[Badman]

and?

[Zizouz]

you got Baped 

[Niall Ferguson]

Peak for certain guys thinking they're gonna buy in London

 

http://www.standard.co.uk/news/london/londoners-must-earn-100000-per-year-before-they-can-afford-a-home-9793495.html