Hi Wayne

I recently arranged a mortgage with HSBC and can pretty much agree with what Cindy has said. HSBC don't use the multiplier when you go into the branch. They added together insurance, council tax, water rates, proposed mortgage payments, loans and credit cards then worked out this as a percentage of my monthly income. As long as it is below 60% they will usually lend. Of course they are all too happy to add in mortgage repayment protectors and income protectors but it's up to you if you want these.

Hope this helps,

Brian

Hi WayneW This is a common problem not just for first time buyers so dont worry you most certainly are not alone in your plight. When you are looking at purchasing a property as a general rule of thumb you can work out roughly how much a lender will be prepared to lend you by adding the total amount of your salaries together and multiplying them by 4, obviously this figure can be changed with overtime and other regular income that you may receive, but as a general guide it works quite well. There are a few lenders who will now lend on affordability as opposed to income mulitples so this too can enhance the amount of borrowings that you may be able to get. they do take into account any current financial commitments (loans/credit card payments) & this figure will be annualised and deducted from the amount also. as for the budgeting question, lenders do not require an exact figure pcm,just a rough estimate on how much you spend pcm on utility bills inclusive of water rates and council tax a fair assessment will probably be around £190 the legal fees are dependant on the conveyancer used but generally come in around £1000 for a first time buyer also for a first time buyer I usually recomend a fixed rate as this way you will be sure exactly how much you will have to pay each month and also comfortable in the knowledge that this figure will niether rise or fall during the period that you are fixed allowing you to budget effectively, have a look at our website we have devised a page based on first time buyers to help you with your first purchase. Cindy

i have no idea, and was hoping someone could point us in the right direction, i dont even know wether we earn enough money to get a decent property or even get on the property ladder.

im not sure how much i can borrow. i ve tried looking on mortgage calculators but they dont really offer much. around £86000 which isnt really alot considering the house prices. im looking for around £100000 for a mortgage but are unsure if anyone would lend us this? this site gives me details for a £100000 mortgage when i enter our details and salaries etc does this mean that we are eligible to have a mortgage for this amount? in my opinion i think we could afford the £650 (inc Insurance) a month for the mortgage of this size as we dont have much outgoings.

as for budgetting how much would you budget for bills every month?

how much would keep asside for the setting up of the mortgage and legal fee's?

what type of mortgage should i go? i have been told that a fixed mortgage will be best? but im unsure

we had a consultant visit us, arranged from this site but he never got back to us on any figures or nothing.

can anyone give me some advice on the above questions?

please e-mail me on wayne.laura AT blueyonder.co.uk with any suggestions

thanks in advance