I must apologise if this seems a really stupid question but i am a complete novice about this topic! Me and my boyfriend rent a flat at the moment but I have just fallen in love with a house further down the road. It needs some doing up , but I know I can get it looking nice and quite like the challenge. The problem is we only have a small bit saved at the mo and wouldn't be able to  afford the suggested monthly mortgage rates as we are both on a fairly small wage. Would we be able to get a loan to cover the cost of house and then pay it back in smaller amounts monthly. (£130,000)
Another option im keen on is offer less than asking price , do it up and sell it for more , thus making a profit , as other smaller houses down road are selling for a lot more than this one because they are in better condition.

Any ideas / advice would be great!! Thanks , Kate xx

I dont have a mortgage so could be wrong here but arent they classed as one of the cheapest ways to borrow money? If you get a loan you will be paying a LOT of interest on it, more than with a mortgage anway i would imagine.
Also it might be qite dificult to get a loan for £130,000!! Particularily if you say its for a house i would imagine they would wantto sell you a mortgage anyway

thanks , have looked for loans on internet since posting and yes you're right - most only do 100,000 as max. Could i get a mortgage with only paying 400 approx back a month?

The best thing to do is to go to a bank/building society and ask :) They will work out for you how much they would lend you.

Daisy

You say you're both on a small wage?  To be anywhere near close to being offered a mortgage of this sort of amount, you need to be earning between you about £50K/annum.  We had a £100K mortgage over 25 years (we couldn't get it over a longer period, although if you're younger than us (and most people are <G>) you might be able to), and we're paying £650/month, with a salary of £42K, the payments have gone up £50/month in the last year........

yeh - we're not earning anything near that! Perhaps I should just give up on this one! But i dont think we'll ever earn that much between us. Ireally hate where we're living at the moment and i suppose i just wanted to move , saw this house i love and just hoped there was a way of borrowing money and paying back bit by bit. Ah well.....maybe i'll try Bill Gates!! hee,hee

Thanks Daisy , we're going into town today so can go around some. I just didn't know whether they would even consider us - but I suppose they can only say no at the worst!!

Sugar where about in the Midlands do you live?  It may be worth shopping around and looking in different areas to which you both live, as property prices range from area to area.  If you both work and have transport moving to a different area need not be a problem, i moved from Sandwell to Staffs, feel like a fish out of water sometimes, but hey i got a great house for a very reasonable price ;)

Something to look out for is housing associations where you can buy 25/50 % of a house. I have no experience of this, so don't know how it works out in practise or if you would be eligible, but it is a way of getting onto the property ladder if you can't afford to buy 100% of the house.

Daisy

Bad idea, sometimes you can end up paying more than you can afford on those sort of schemes, as you dont only have a mortgage to pay, you also have to pay rent on whatever % the housing association own.

I said that I didn't know how they worked out :D :D

Daisy

I would forget banks/building societies and speak to a mortgage advisor instead, they shop around for you and get the best deals.  My building society offered me a £70,000 mortgage but I ended up with a £118,000 mortgage through a mortgage advisor.  It is my own mortgage and I was earning £30,000 at the time.  Be warned though it started of at £577 per month (over 30 years) and is now £640 per month and its changed that much in just over a year :(

I wouldnt really call that a great deal through a mortgage adviser, is yours an intrest only mortgage?  My own mortgage is only £477 which aint bad thats a repayment one which has a fixed intrest rate for three years.

Abbey National are now giving mortgages for 4 1/2 times your salary.  They are also doing a very good fixed rate at the moment of 5.19%. We have just sorted out our mortgage this weekend with them.

Nikki B,  I wouldnt call it a great deal either but it was a choice between getting that or nothing, no other company would offer me a mortgage of that value - thats when a mortgage advisor comes in, obviously he would have loved to have got me a better deal but at least he got me something which when you are on your own only earning 30k per annum it is difficult to get.

It is a repayment mortgage, discounted but not fixed rate as at the time the interest rates were dropping fast - oh how fast things can change :(  Im hoping to sort out a new mortgage soon with better terms though as my house has greatly increased in value :)

Lets hope you get a new mortgage :)