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Mortgages : First Time Buyer

Blogger : MoneySavingExpert.com Forums
All posts : All posts by MoneySavingExpert.com Forums
Category : Mortgages
Blogged date : 2008 Feb 11

Evening All,

I'm hoping to purchase a property for the 1st time! As some background, my salary is 24K, but I have over 9K of debts (loan and cards which I'm steadily reducing:cheesy: ).

I have spoken to 3 or 4 brokers, who seem to give varying advice (I have checked that they're whole of market).

2 brokers recommended a mortgage from BM Solutions which would include 100% mortgage and 9k to cover the abovementioned debts. However when I asked for a decision in principle, I was rejected (apparently re a late payment in the last 12 months which I don't think is true, but am about to ask for my latest credit rating).

I've since spoken to the bank of mum and dad, and there maybe a 5% deposit available from them which I guess helps me.

Sorry to keep on, but another broker has today recommened a mortgage with RBS (with the 5% deposit and without the extra amount to cover debts)- she described it as an Application in Principle. My fear is that I get rejected again at the Decision in Principle stage. Can this happen? What's the difference between Application in Principle and Decision in Principle?

And another quickie, loooking at the overall cost of the mortgage it will be £3.28 for every £1 borrowed. Does this sound excessive?

Any advice greatly fully recieved.

Thanks,

Kingpoultry

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