Case Studies 1
Cathy and Jason want to get onto the property ladder. Cathy earns £25,000 a year, and has savings of £6,000. Jason is on £18,000 and has savings of £4,000. Jason has one CCJ of £250, which has been resolved. They wish to buy in the £180,000 - £200,000 range.
Solution
Cathy and Jason are looking to borrow more than what most mortgage lenders would consider acceptable.
Apart from Royal Bank of Scotland, not many mortgage lenders will entertain a 100 percent loan due to affordability and the CCJ. Looking at the lower figure of £180,000, they require a 5 per cent deposit of £9,000, but average purchase fees of at least £3,300 would take them beyond their budget.
This means if they looked at properties in the region of £150,000 they would be better placed.
I would be considering the Chelsea Building Society which currently offers 5.24% fixed for two years or 5.29% fixed for three years, and will ignore a small CCJ..
Think carefully before securing other debts against your home.
Your home may be repossessed if you do not keep up repayments on your mortgage.
The overall cost for comparison is 7.1% APR. The actual rate available will depend upon your circumstances. Ask for a personalised illustration. There may be a fee for the mortgage advice. The precise amount will depend on your circumstances, but we estimate it will be 1.5% of the loan amount with a minimum fee of £500 added on to the loan.
Mayfair Consulting Limited is an Appointed Representative of The Mortgage Times Group Limited, 279 Tottenham Court Road, London , W1T 7RJ , which is authorised and regulated by the Financial Services Authority no. 303007.
