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Discussion Starter · #1 ·
About to step into that dark place (home ownership....)

I have a meeting with an advisor next week but wondered about a few things first.

I stay with my girlfriend who is a student at the mo (0 income), is it possible to have her on the mortgage? Will it make a difference to the amount they are willing to lend us? Will a 20 grand deposit make a difference to how much they'll lend? Or is it still down to however much times your salary? (how much years is it btw?)

I'm 21 and she is 19 (coming up for 20) if that makes a difference.

Her dad pays her half of everything so I'd like either one of them to be joint with me.
 

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if your girlfriend has no income, you obviously can't borrow against anything. I don't see why her name can't be on the mortgage but I'm not 100% about it - maybe someone knowledgeable will reply

The Abeey are doing a 5 x income mortgage now - just make sure the repayments are affordable
 

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Good on you taking the plunge into home ownership. I did the same about 4 years ago when I was about the same age.

Your girlfriend wont make a difference to the mortgage but as her dad is paying half you could ask him to act as guaruntor to your mortgage which will mean you can borrow more than would otherwise have been possible. If you have a ?20, 000 deposit then that will go big time in your favour too (how the hell do you have a 20 grand deposit at 21 is beyond me) however the rest will depend on a multiple of your salary + the allowance for the guaruntor.

If I were to give you any advice I would simply suggest that you use your time with the advisor to ask as many questions as you want, afterall they are there to advise, and to plump for the option you feel most comfortable with. At the end of the day if you do take out a mortgage on a house you'll end up paying less than renting and when you move out instead of having to pay off a massive deposit you'll be able to sell up and hopefully get some money back!
 

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Having a 20 grand deposit will definitely improve the situation, but it's all a function of the percentage of the purchase price. After about 15% I don't think it qualifies you for any better interest rate, but it will obviously bring down the amount you're borrowing and therefore the repayments. As for your girlfriend, if she hasn't got an income at the time of arranging the mortgage, then I think she's considered as a financial liability and it will negatively affect the amount they are prepared to lend you. When I got my first place my wife just over a year ago she wasn't earning and that's what the mortgage adviser told me. It worked out that they wouldn't lend me more than 3 times the income. Having your girlfriend's dad as joint owner would probably make things better, as his income will be taken into consideration. Hope that helps
 

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Discussion Starter · #5 ·
Hmmmm, is it a set allowance for the guarantor or a % of their wage? If it was that'd be massively in my favour.

Need to get on the property train anyway, renting is dead money (at least at the moment it is!)
 

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as an additional bit of advice - make sure you take advantage of your first time buyer status when making an offer. The fact that they don't have to worry about you selling a place means you can exploit the fact that they will get a quick sale. Make sure when you view a place that you check it out with a very critical eye and make a note of all the things in the place you'll have to change/renew, then make an offer of at least 10% below the asking price. If they want/need a quick sale, they'll probably rip your arm off. When I bought mine, I did just that and the offer was accepted within 24 hours. Let's face it, with the prices as they are today, you need all the help you can get. It's also a good idea to get a list of 5 places you'd definitely want, hit them all with a low offer and then take the best price.
 

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Discussion Starter · #7 ·
In Aberdeen just now ?20k OVER the asking price on a flat would be considered a low offer!!

Thats a good point about being a 1st time buyer making me at an advantage, I hadn't thought about it like that before.
 

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The Financial advise will be the main guy that will help<?xml:namespace prefix = o ns = "urn:schemas-microsoft-com:eek:ffice:eek:ffice" /><o:p></o:p>

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Deposit helps, but the main issue will be the loan to value ratio and the amount you wish to borrow. <o:p></o:p>

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It depends from the Bank you choose but if three / four times your wages will cover the ratio then you will be ok on your own (with both of you as the debtors and the owners of the property) and then your girlfriend?s father can give you her share to help you, with the payments.<o:p></o:p>

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The fact that your girlfriend does not earn will not help and I would guess that the best option would be for her father and you to be on the title deeds and the debtors. This will allow you to borrow more money.<o:p></o:p>

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I think you can also do it as her father and you as the debtors, but with you and your girlfriend as the owners of the property, but it will need to be done as a third party basis. I?m sure the third party element is different in Scottish Law, than it is in English law and I think that Scotland does not have a third party format, so I don?t think this will help.<o:p></o:p>

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There are ways for you to get a good mortgage, but I can?t really help due to the law differences between England and Scotland, sorry I only know English law.<o:p></o:p>

<o:p></o:p>

Hopefully some that knows Scottish Law will be along soon. Good luck
 

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Didn't consider the fact you're in Aberdeen. Hasn't Scotland got a different set of rules to England when it comes to making offers on a place? Not sure if you can make multiple offers, as I think an accepted offer is mutually binding, so you'd better get reading mate. [8-|]
 

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Didn't consider the fact you're in Aberdeen. Hasn't Scotland got a different set of rules to England when it comes to making offers on a place? Not sure if you can make multiple offers, as I think an accepted offer is mutually binding, so you'd better get reading mate. [8-|]
Yup offers in Scotland are binding. As they should be here if you ask me, would stop all this pulling out when you go off the idea rubbish! Also the '10% below asking price method' can work but depends where you are - its likely to get you a slap around here. Works in some areas but not others, and as I understand it in Scotland the asking price is a starting point rather than one to chip away at?

As regards mortgages, Abbey and Northern Rock will lend the most - 5 and 5.8 times respectively depending on your credit rating. I think Chelsea and Coventry are lending at that level too but not sure. Depending on how much you want to spend you may wish to go the Self Certified route, which means you do not declare your income, just sign to say 'I can afford this'. You can only get a self cert in most cases with a 15% deposit or more, but ask your advisor for more info. As said if your girlfriends Dad will act as a guarantor, you can borrow more, but you probably won't need him if you go to the right lender. 3x income is the bare minimum these days.

Rates have just gone up to 5%, so as has been the case for the past couple of years its probably a good idea to get a fixed rate deal as rates are so low. As an example Lloyds TSB are doing 5.09% fixed until December 2008. Your ?20k will open up your options to the majority of mortgages that lend 75-95%; no deposit restricts you to about 10 lenders.
 

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Best having her old man on the mortgage than her, if it all goes wrong &you split, she'll get HALF, her dad may on the other hand look at it as an investment.

Trust me, I've been there, roses today, tomorrow comes the thorns

sorry to darken your light
 

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Just bought a house a few months ago. Best thing we ever did I think, and a good long term plan.

We have already made over 10% of the purchase price in equity, and ploughed a little into decoration and renovations etc. Its coming along nicely, and we have so many plans. Its very exciting doing something your way, and having something to show for your efforts.

Just dont take a mortgage that is beyond your means. Bear in mind all the bills plus the things that crop up, ie repairs.

And dont forget it costs thousands to fully furnish...

If you have a 20k deposit you pretty much have a s election of any mortgage. I would advise keeping a few grand by for the above tho.

Other than that, go for it, and enjoy being in debt for the next 25-30 years!!!
 

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i wish the amount you put down reflects the mortgage decision!

i put 30k down and my salary did not cover the borrowing amount - so i had to add someone to the mortgage

good luck! all i can is where theres a will theres a way!!
 

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Discussion Starter · #15 ·
Just to update I spoke to the guy today. Really helpful.

He basically told me to get the best thats within my means, even if it means up to a 40 year mortgage you can still remortgage after a few years and you have your equity made....... He reckoned we'd manage to sort something out as I was an ideal FTB with no debts.......

Got a proper meeting being arranged to find out the score completely with it all, get exact figures on what they will offer.
 

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Just to update I spoke to the guy today. Really helpful.

He basically told me to get the best thats within my means, even if it means up to a 40 year mortgage you can still remortgage after a few years and you have your equity made....... He reckoned we'd manage to sort something out as I was an ideal FTB with no debts.......

Got a proper meeting being arranged to find out the score completely with it all, get exact figures on what they will offer.
Excellent news.... the up to 40 year mortgage will allow you and the girlfriend to have the loan and property in your names... which is what you wanted. Don't worry about the up to 40 year thing, as you mentioned you can remortgage in due course once the girlfriend is earning.

Defo make sure the repayments are well within your means, because sadly the only way for interest rates to go is UP [:'(]
 

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Discussion Starter · #17 ·
Yup it was really good to find out all this, I am in line for some big pay rises in work over the next 1-2 years but it was great to find out we can sort out something in the meantime so we aren't paying someone else's mortgage [Y]
 

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Mike - You are right - When a property here is advertised it is advertised at offers around or over a certain amount. Lower offers can be submitted but as thechief said, in Aberdeen property is selling for around 20% more than the advertised price.

To give an example, three flats near mine were recently sold for an average of 35% more than the asking price.

With regard to the mortgage, my mortgage is shared with my mum so that if I split with the girlfriend, she would have a hard job claiming half the property which she has never paid in to. It would be difficult in Scotland anyway as common inlaw partner does not apply here either, but it is on the cards.

FYI, my mum has zero income and my g/f will buy a property next year to rent out so she has an asset as well. I am encouraging her to do this as she spends all her money on crap and moans she has nowt.

This may seem very impersonal and untrusting etc, but as I am in a similar boat to you chief, and have been down the road you are embarking on, I am aware as you will be, that the divorce rate among offshore workers is a lot higher than in other industries. It is very much worth keeping this in mind. Also consider that the female always comes of better in the event of a split, so you might want to have the mortgage in your name only if it is you alone that is going to be funding it.

Hopefully that would never happen to you or me, but you would be foolish not to consider all possibilities.

My mortgage is with the Nationwide and allowed me to add up to ?500 extra on top of my set amount every month without financial penalty. As I worked offshore when I got the mortgage, my pay packet was based on the number of days I worked away. The more days away = more dosh earned and less spent due to being unable to spend money on a rig and therefore more spare money to add to the mortgage repayment. The interest rate was around 5% as I recall and it is fixed for 5 years.

If your work away is going to be sporadic like mine was, this is maybe something you would want to consider doing as well. If you cannot afford to pay extra one month, you dont have to.

Since being office based, my salary increased by a considerable margin, and touch wood, I have never missed the opportunity to this date to add the ?500 extra per month since having the mortgage. As a result, all things going well, I should have it cleared in much less than the original time span.

FYI, it is also worth talking to an Independent Financial Advisor with regard to martgages and money matters. There are a few good ones dotted in, around and just outside Aberdeen.
 

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Discussion Starter · #19 ·
Cheers Horace, regarding who the mortgage is joint with...... If we split thats cool, after how long I've been with her she deserves her half or whatever. She always pays her way (may be different when I am earning alot..) and she is also looking on it as an investment. If everyone is assuming it'll be sold and she'll have that 20 grand, don't assume it was me that saved it all up [;)]

Any offshore bonus I have Horace will be going towards a decent car or modding the TT [H]
 

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Just a quick question, or more a bit of advice really... If the ?20k deposit is yours then make sure that you get a contract drawn up between yourself and your girlfriend, that stipulates that if you were to split, you either get your ?20k back or do it as an equivolent % of the the house i.e If the house was ?100k then you have put a 5th into the pot, so you should get a 5th out of the pot before the rest is split in 2 in order to keep things fair.

A few of my friends have done this when buying property with their partners.....

That said; if it is her that has all the cash then don't meantion it to her.. [:D]
 
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