Ask the experts
About our experts...
At John Charcol, we are constantly asked for advice by borrowers on what they should do when it comes to mortgages. As such, we created this section so that you can submit your questions to our experts. The answers are provided by a number of people who have years of experience in the mortgage market. The team is led by Peter Woodward who spent his formative years as an underwriter with one of the major UK lenders and the last 10 years in our Technical Department along side Ray.
So please do submit your question and we will do all we can to answer it as quickly as possible
Please be aware that these answers can only be generic and no personal recommendations can be made.
Posted on 14/07/2010
My parents bought a flat in Edinburgh a few years ago and put both my sister and myself on the mortgage. This was to avoid paying inheritance tax on the flat should they pass away. I now want to buy my own flat in London, but don't know whether I still qualify for First Time Buyer stamp duty exemption. Please can you advise?
Categories: First-time buyer, Tax issues
Posted on 21/06/2010
My fiancé and I are planning to buy a house together. He currently owns a flat, but I am a first time buyer. If we buy the house in my name, could I then, at some point, sign half of it over to my fiancé's name, or would we then have to pay the stamp duty?
Categories: First-time buyer, Tax issues
Posted on 10/05/2010
We bought a flat on first time buyer mortgage. Because of job we need to relocate and we want to rent out our apartment. Do we need to change our mortgage?
Categories: Buy-to-let, First-time buyer, Special circumstances
Posted on 03/05/2010
I am 49 years old and on an income of 24,000 per year. I have never owned property before, but would like to buy one now. I have about £20,000 as a deposit. How much would I realistically be able to borrow?
Categories: First-time buyer
Posted on 28/04/2010
When my wife was single she got a mortgage to pay for her father's house, the property deed never had her name only her father. She had to get life insurance and a endowment policy (which we still pay in) but the mortgage has been paid off. I own a property only with my name we want to buy a new property for letting. Is she eligible for First time buyer stamp duty relief since she has never owned a property although has had a mortgage before?
Categories: Buy-to-let, First-time buyer, Tax issues
Posted on 19/04/2010
My partner and I are first time buyers and we are looking at properties between £90,000 and £120,000. We are not sure how much deposit we will have to pay, but we are both saving at the moment and have reached £5,000. I am self employed and my partner is employed, I have been self employed for 1 and a half years and have paid a year's tax. I also receive pay slips could we get a mortgage and how much could we hope to get?
Categories: First-time buyer
Posted on 13/04/2010
I earn £18,000 and Im looking at my first buy, new house for £169,000. Am I likely to get a loan, I have a deposit of £10,000?
Categories: First-time buyer, Shared ownership, Special circumstances
Posted on 04/04/2010
As someone who sold a house 4 years ago but never bought another since (I have rented since then) , would I qualify as a first time buyer:
1 - in terms of the latest stamp duty changes?
2 - in terms of applying for a new mortgage?
Categories: First-time buyer, Special circumstances
Posted on 11/02/2009
Assuming a property value of £100000 on a buy basis of 75% and rental on 25%. What amount of deposit would be needed and what would the monthly outgoings be assuming it was a 25 year mortgage for first time buyers?
It is possible to borrow 100% on a 75/25 equity share but most lenders will require a deposit of at least 5% of the 75%, i.e. £3,750 on your proposed purchase price of £100,000. If you can put in at least a 5% deposit you will have a much wider choice of lenders and be able to get a significantly cheaper mortgage.
You will need advice on the mortgage options but depending on which mortgage you chose and the rent payable on the 25% equity share portion your monthly cost for the mortgage and rent is likely to be in the region of £500.
Categories: First-time buyer, Shared ownership
Posted on 21/05/2008
I am a first time buyer who wants to buy a flat in London. Some people are saying to wait as prices are expected to fall by 12%-18% over the next 2 years nationally. Can this price drop be expected in London or other "hot spots"? London prices seem to be in a bubble that is not typical of the rest of the country.
Categories: Current rates & the market, First-time buyer
Posted on 04/05/2008
Bit of a convoluted question but I hope you can help...! I am a first time buyer and I'm considering a shared ownership type arrangement with a family friend who is looking to invest in property. Would it be possible for us to purchase a property on the open market jointly (say with me owning 50% and my investor 50%)? And if so how would I go about getting a mortgage? Can I get a mortgage just for my part or would my investor and I have to get a joint mortgage for the whole amount less our deposit? My investor could probably fund his share through existing savings or I guess if he did need to borrow, he'd probably prefer to extend his own mortgage (i.e. on his home). Would that be feasible in light of my requirement to get a mortgage for my share?
Also I notice that for the housing association shared ownership schemes you have to pay some element of rent as well. With our private arrangement rather than paying rent I wondered whether it would be possible to formalise some kind if arrangement that my investor gets back as higher share (%) of the sale value when we eventually sell - say after 5 years? So if we brought the property on a 50:50% basis, that maybe he'd get an extra 1% per year so that after 5 years he'd receive 55% of the sale value and I'd receive 45% - I'm hoping that the current price falls are short term and that by then the prices would have increased - at last by 5% over 5 years so I don't get negative equity! I understand that the mortgage market is pretty selective at present so I'd appreciate any advice with regards the feasibility of getting a mortgage, taking into account the above and also any advice on the legalities of our proposed arrangement.
Any help / advice you could offer me would be greatly appreciated.
Kind regards
Victoria
Categories: First-time buyer, Guaranteeing & buying with child, Shared ownership
Posted on 24/04/2008
My partner and I are looking to buy our first property. I am employed and earn £24,000 a year. He is self-employed and earns around £18,000 a year BUT the problem we have is that he is unable to prove his income as he does not have any accounts. We do not have a deposit therefore a self-certified mortgage is out of the question. What would you suggest is the best option in our circumstances? We have seen a property for £135,000 - would I be able to get a mortgage for that amount on my income alone?
Categories: 100%+ borrowing, First-time buyer
Posted on 27/03/2008
I have a deposit of £25,000 with another £25,000 in shares and investment funds. I am single, aged 39 and have no debt. Would it be possible for me to get a mortgage for £180,000. I earn £22,000 per annum.
Categories: First-time buyer
Posted on 17/03/2008
I have just bought my first property. I took a mortgage with RBS. Our monthly payments are very high - we have a fixed rate of 6.35% for 5 yrs. We are struggling with repayments, can we exit this mortgage without having to pay the exit fees as it states on the documents?
Categories: First-time buyer, Lower mortgage payments
Posted on 05/03/2008
I've heard about the 125% mortgage being fazed out. I'm a first time buyer without a deposit and no chance of really raising one, however I want to get on the property ladder asap as I'm wasting my money on rent! What are the chances of still getting a 100% mortgage? Thanks, Rosie
Categories: First-time buyer
Answers provided in response to Ask the experts are based on the information provided and do not constitute advice under the Financial Services & Markets Act. They reflect the personal views of the authors and do not neccessarily represent the views, positions, strategies or opinions of John Charcol. All comments are made in good faith, and John Charcol will not accept liability for them.
We recommend you seek professional advice with regard to any of these topics where appropriate.