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wings
23-Feb-05, 22:58
I went to look into a mortage last week and understood everything the guy said however just one thing i cant get to grips with... I have asked for an amount that is cheaper than both my pals mortgages,, yet i end up paying more than them every month! ..? And i know one of those pals are actually thro the same lender? I know that loads of different things come into it,, what you earn... how much is your outgoings etc.. but I earn more than my pal,,, and i have less debt than them... and as i said before i want to borrow less money......

Now this makes no sense!! How on earth do i have to pay more than my pal?
I'm a first time buyer any advise would be gratefully received!!

Drutt
23-Feb-05, 23:08
It's likely to be that when your friends arranged their mortgages the interest rate was lower, the offers by the banks and building societies were more competitive and they were offering very good fixed and capped rates.

Now that the interest rate has crept up a little, the offers aren't as good. Your income will probably only be affecting the size of the mortgage you can take out, not the rates offered. Things like your deposit % will have a bigger difference in what kind of rates you are eligible for.

Are you using an independent financial advisor?

George Brims
23-Feb-05, 23:11
Aha you have stepped into the Looking Glass world of credit. One of the really confusing parts is that you can have a higher credit score (i.e. look like a better bet to the lender) if you have *more* debt. This is assuming you have borrowed money and have a good record of paying it back, without late payments. As you say you are a first time buyer I am guessing you're young, so maybe you just haven't had time to build up your "track record".

On the other hand, you should also think about shopping around. Try a few lenders. Don't try a dozen or more - that looks bad!

Scuball
24-Feb-05, 12:08
Are you using an independent financial advisor?

Can you recommend a local Independant financial advisor?

daviddd
24-Feb-05, 12:36
It also depends what term i.e. no.of years you are borrowing over.

Colin Manson
24-Feb-05, 13:13
Have a look here

http://uk.biz.yahoo.com/mortgage/index.html

They seem to list all the best offers.

Cheers
Colin

Drutt
24-Feb-05, 18:23
Can you recommend a local Independant financial advisor?

I can't really help regarding recommending IFAs, but this website might be helpful -

http://www.unbiased.co.uk/

You can do a fair amount of research on your own using http://www.moneyextra.co.uk/ and http://www.thisismoney.co.uk/.

The main thing really is to not just walk into a bank and expect them to offer you the best deal available on the market for you - they're salespeople and not advisors. That's why IFAs can come in handy.

ajr
24-Feb-05, 18:37
do your research. If we both borrowed 100k and I paid it off in 1 year and you paid it off in 10 years the you would pay less per month than me. It could be somethining as simple as that.

Don't just go for the first one you get offered. It's a buyers market!!