Mortgages

[Ralphy]

Sam, 40 year mortgage.

[Samdy Gray]

Sam, 40 year mortgage.

Me and the missus have been looking at mortgages lately. With our combined salaries we can borrow £100-£110k.

Done a few online quotes for £100k over 30 years, coming out around £500-550 a month.

Just got to find somewhere to live now...

[Ralphy]

I'm single, and the most i could borrow on my salary was £100k.

Got a mortgage for £90k cos i'm putting down a £6,750 deposit.

[Bushey Boy]

Sam if its swindon drop me a pm I buy property for investors all the time and usually buy 10% under value.

[Samdy Gray]

Right, could someone who knows a bit about mortgages clear this up for me. Sorry if this sounds a bit thick.

Loads of people keep harping on about deposits and it's got me utterly confused. For arguments sake, say I want a house that costs £100k and I've got £10k, I borrow £90k and the £10k is a deposit.

But then people tell me about another 10% deposit when you complete. Where does this come from, does it mean I've got to find another £10k?

My brain is totally fried  :?

[Dazzza]

Right, could someone who knows a bit about mortgages clear this up for me. Sorry if this sounds a bit thick.

Loads of people keep harping on about deposits and it's got me utterly confused. For arguments sake, say I want a house that costs £100k and I've got £10k, I borrow £90k and the £10k is a deposit.

But then people tell me about another 10% deposit when you complete. Where does this come from, does it mean I've got to find another £10k?

My brain is totally fried  :?

I'm no expert but the further 10% on completion is highly unusual unless its conditions stipulated by the developers of a new build.

If you sniff about as a first time buyer you may even get away with as little as a 5% deposit as a first time buyer.

[Samdy Gray]

I think I've got my head round it now.

If I borrow £90k for a £100k house, the difference of £10k is called a 'mortgage deposit' which is effectively still cash in my bank.

When contracts are exchanged and the usual 10% deposit is paid, this will effectively be the £10k of my own cash rather than the £90k mortgage... I think.

Fuck it, I'm still confused. :x

[Dazzza]

I think I've got my head round it now.

If I borrow £90k for a £100k house, the difference of £10k is called a 'mortgage deposit' which is effectively still cash in my bank.

When contracts are exchanged and the usual 10% deposit is paid, this will effectively be the £10k of my own cash rather than the £90k mortgage... I think.

Spot on I'd say Guvnor.

[Samdy Gray]

Nice one Dazzza