Hey Alex, I have been following you since last year and your content is GREAT. Very educative and helps to sort out many questions regarding the buying process of a property.
So whats the point of buying a house if a crisis comes up you and you cant pay your mortagage its the same as renting you get evicted anyway or the landlord might decide to just sale? So technically even if you buy a house its not really yours its the banks unless you have enough money to buy it cash or pay off your mortgage quickly. Id love to buy a house but ....
I had no idea about the Lifetime ISA and the one year requirement, thanks! Waiting for that will delay my plans of buying by March 2023 but sounds worth it and gives me the chance to save for a 15% deposit.
Hi Alex, I really like how you explain everything, very informative. I need a little advice so for a first time buyer say buying a property for the price of 430,000 how much offer should be made on properties like these prices.
It’s really difficult to say how much you should offer on a property without knowing the history of the property. I’m going to do a video soon all about this as currently getting asked this question quite regularly, so definitely watch out! Also, it may help you to follow me on Instagram because I do do daily videos about this sort of thing as well.
Hello Alex. I’m 41 and have a 5% deposit. I’m worried about buying a house and it falls in price and the interest rates going up. I’m running out of time and the housing market isn’t looking good. Much help appreciate 👍
Great info Alex. Quick question... if i have debt and the combimed monthly is high. Would you advise i get a larger loan to consolidate and bring my monthly outgoings down? For e.g i can get a loan which reduces my outgoings by £300 per month. however, i will repay this loan over a longer period of time. I was thinking this may look better to the lender and boost my potential borrowing power. Any advice from any guys on the channel much apreciated 👍
The plus side is that a mortgage lender would potentially lend more if your monthly outgoings on commitments are less… However the debt might be being spread over a longer period of time. But for mortgage purposes, in theory the lender would lend more in the instance you are proposing.
How about first time deposits for those of us who are older… less time to repay a mortgage = higher repayments… is there a way to mitigate this (other than a massive deposit)?
Hi , I saw few houses and found one I love.i have feeling it is place I would be happy. It’s just amazing. House costs £250000 I have deposit £12500. Have no other loans or mortgages. All my credit cards are fully paid. I have a question. Deposit is all money I have as of today. Will have salary paid shortly. When can I give proof of my deposit. Now as whole money I have or after my salary is paid? I am full time employed since 6 years on 57k\ per annum.
@@alexkerrmortgage Hi, thank you for response. Nice to know someone is responding to comments. I have 5% deposit, no loans, no credit cards affected all paid off, never had any delays in payments... renting 14 years now and really do not want to do it anymore... just worried if will buy a house for example for £250000 , will I survive paying mortgage...? I have no kids and single... like to have control on my spendings but really smeared to have mortgage... is it possible to survive in my situation taking mortgage of my own? Have no one to ask....
@@alexkerrmortgage@ for example i need a deposit of 20,000£ for processing my mortagage application but actually i am having a deposit of £19,000. This may cause rejection of my loan?
I’m 18 and it crossed my mind that I might be able to afford a mortgage, got about 15 grand saved and don’t really have any outgoings. Slight problem being that I live on the Isle of Wight so house options is relatively limited and are all fairly expensive but plenty around the 200k mark, no clue if this is in anyway a realistic goal for the next couple years but I think I’m definitely gonna look into it, it’s definitely a better thing to spend money on than rusty classic cars which is my hobby/obsession😂
How about money gifts from parents? if my dad gives me 50k tomorrow and I add to that and pay all as a deposit. Is that a problem? will the lender question that in anyway?
Hi, I spoke to my mortgage advisor recently and I’m passing on his advice: Having money gifted doesn’t seem to be an issue from close relatives (eg mum/ dad, siblings), aunts/ uncles and friends appears to be trickier. You need to account for every penny with paper trails as banks want to make sure the money is not from money laundering. That would include your account to show the trail of the gifted deposit, as well as family’s bank accounts (6 months worth of statements typically) to show the money is legitimate, plus a letter from them stating the money is a gift, not a loan and they will not make any claims on the new property. A side note: banks do not accepted crypto as a deposit- yours or gifted! Hope this helps!
They will ask your dad to sign a gifted deposit form which states the money is not a Loan, does not need repaying and that your dad has no interest in the property
Haven't seen the main info, how much deposit should I have, including all surcharge, average pay to broker, lawyers, what is the "enough" shoulder to win at least something. Like i have a 25k on my account. Can I afford a shit? 😂
You need at least a 5% deposit plus around 5K on top. Assuming you are a first-time buyer and are purchasing under £425,000 then you would not have any stamp duty to pay (as of the time of writing this reply).
I've been told by a friends son who is an economist that the housing market is going to crash sometime this year and house prices will collapse by 40%, those not on fixed mortgages will see their mortgage repayments double every week and it will take two years to recover. What's you opinion on this Alex? Another worse case prediction like the recession supposedly caused by lockdown or something that could actually happen?
I have this type of message quite regularly whatever the year and whatever is happening with the housing market! I heard this at the point of the pandemic as well… The UK housing market is strong and the government have supported it in recent times like never before… It’s an impossible question to answer but I always say if you have the opportunity to buy, then take it. Historic data shows that over a period of 10 to 15 years the property price always approximately doubles from the price you purchased it for initially.
We have saved up a 10% of our deposit but our income is not great as I work part time and my husband full time but not on a great wage. Will this be an issue? Thanks for your advice in advance 👍 😊
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Hey Alex, I have been following you since last year and your content is GREAT. Very educative and helps to sort out many questions regarding the buying process of a property.
Thanks very much, Andreas, really appreciate the follow and really glad to hear that it’s helping! Plenty more to come.
Thank you for your video I will watch it again so I can catch some of these terminologies
Thank you mr Kerr
You are very welcome
So whats the point of buying a house if a crisis comes up you and you cant pay your mortagage its the same as renting you get evicted anyway or the landlord might decide to just sale? So technically even if you buy a house its not really yours its the banks unless you have enough money to buy it cash or pay off your mortgage quickly. Id love to buy a house but ....
There is of course risk attached. But taking no risk sometimes leads to a bigger loss.
⚡ TODAYS QUESTION: ? Are you saving for a deposit at the moment ? Let me know! 👇👇👇
Yes I am
@@scotlandlover7 great stuff, thanks for replying. Are you taking advantage of a Lifetime ISA ?
@@alexkerrmortgage I have a Help to buy ISA I opened before they stopped and also a regular savings account. I am looking to buy this year
@@scotlandlover7 excellent stuff! Keep saving, your doing great, any questions along the way let me know!
I had no idea about the Lifetime ISA and the one year requirement, thanks! Waiting for that will delay my plans of buying by March 2023 but sounds worth it and gives me the chance to save for a 15% deposit.
Hi Alex, I really like how you explain everything, very informative. I need a little advice so for a first time buyer say buying a property for the price of 430,000 how much offer should be made on properties like these prices.
It’s really difficult to say how much you should offer on a property without knowing the history of the property. I’m going to do a video soon all about this as currently getting asked this question quite regularly, so definitely watch out! Also, it may help you to follow me on Instagram because I do do daily videos about this sort of thing as well.
Hello Alex. I’m 41 and have a 5% deposit. I’m worried about buying a house and it falls in price and the interest rates going up. I’m running out of time and the housing market isn’t looking good. Much help appreciate 👍
How are you getting on with this, did you find a property in the end?
No I haven’t. I lost out on a share ownership property so I’m going to wait now.
@@paulhill9800 ok
Great info Alex. Quick question... if i have debt and the combimed monthly is high. Would you advise i get a larger loan to consolidate and bring my monthly outgoings down? For e.g i can get a loan which reduces my outgoings by £300 per month. however, i will repay this loan over a longer period of time. I was thinking this may look better to the lender and boost my potential borrowing power. Any advice from any guys on the channel much apreciated 👍
The plus side is that a mortgage lender would potentially lend more if your monthly outgoings on commitments are less… However the debt might be being spread over a longer period of time. But for mortgage purposes, in theory the lender would lend more in the instance you are proposing.
How about first time deposits for those of us who are older… less time to repay a mortgage = higher repayments… is there a way to mitigate this (other than a massive deposit)?
You can have a mortgage up until age 69, or if you make pension contributions to age 74 with nationwide (given criteria at the time of this comment)
Do you need the full deposit before you start an application? Or start looking for homes?
You need the full deposit before you submit a mortgage application.
Hi , I saw few houses and found one I love.i have feeling it is place I would be happy. It’s just amazing. House costs £250000 I have deposit £12500. Have no other loans or mortgages. All my credit cards are fully paid. I have a question. Deposit is all money I have as of today. Will have salary paid shortly. When can I give proof of my deposit. Now as whole money I have or after my salary is paid? I am full time employed since 6 years on 57k\ per annum.
You need to show deposit at the start of a mortgage application. You only need to prove the deposit, not the fees (solicitors etc)
You need to show deposit at the start of a mortgage application. You only need to prove the deposit, not the fees (solicitors etc)
@@alexkerrmortgage Hi, thank you for response. Nice to know someone is responding to comments. I have 5% deposit, no loans, no credit cards affected all paid off, never had any delays in payments... renting 14 years now and really do not want to do it anymore... just worried if will buy a house for example for £250000 , will I survive paying mortgage...? I have no kids and single... like to have control on my spendings but really smeared to have mortgage... is it possible to survive in my situation taking mortgage of my own? Have no one to ask....
If the deposit is short of 1000£ mortagage declined?
Hi can you expand in that a bit, not 100% sure of the question. Thank you!
@@alexkerrmortgage@ for example i need a deposit of 20,000£ for processing my mortagage application but actually i am having a deposit of £19,000. This may cause rejection of my loan?
I’m 18 and it crossed my mind that I might be able to afford a mortgage, got about 15 grand saved and don’t really have any outgoings. Slight problem being that I live on the Isle of Wight so house options is relatively limited and are all fairly expensive but plenty around the 200k mark, no clue if this is in anyway a realistic goal for the next couple years but I think I’m definitely gonna look into it, it’s definitely a better thing to spend money on than rusty classic cars which is my hobby/obsession😂
It’s good to have a hobbie like that! You need a salary of circa 35-40k roughly to buy at that price.
How about money gifts from parents? if my dad gives me 50k tomorrow and I add to that and pay all as a deposit. Is that a problem? will the lender question that in anyway?
Hi, I spoke to my mortgage advisor recently and I’m passing on his advice:
Having money gifted doesn’t seem to be an issue from close relatives (eg mum/ dad, siblings), aunts/ uncles and friends appears to be trickier.
You need to account for every penny with paper trails as banks want to make sure the money is not from money laundering.
That would include your account to show the trail of the gifted deposit, as well as family’s bank accounts (6 months worth of statements typically) to show the money is legitimate, plus a letter from them stating the money is a gift, not a loan and they will not make any claims on the new property.
A side note: banks do not accepted crypto as a deposit- yours or gifted!
Hope this helps!
They will ask your dad to sign a gifted deposit form which states the money is not a Loan, does not need repaying and that your dad has no interest in the property
Hi Alex we’ve got 25k as a deposit and we’re looking for 2 bed flat in London Zone 5-6 or village’s what would you recommend?
Do you mean location?
Haven't seen the main info, how much deposit should I have, including all surcharge, average pay to broker, lawyers, what is the "enough" shoulder to win at least something. Like i have a 25k on my account. Can I afford a shit? 😂
You need at least a 5% deposit plus around 5K on top. Assuming you are a first-time buyer and are purchasing under £425,000 then you would not have any stamp duty to pay (as of the time of writing this reply).
I've been told by a friends son who is an economist that the housing market is going to crash sometime this year and house prices will collapse by 40%, those not on fixed mortgages will see their mortgage repayments double every week and it will take two years to recover. What's you opinion on this Alex? Another worse case prediction like the recession supposedly caused by lockdown or something that could actually happen?
I have this type of message quite regularly whatever the year and whatever is happening with the housing market! I heard this at the point of the pandemic as well… The UK housing market is strong and the government have supported it in recent times like never before… It’s an impossible question to answer but I always say if you have the opportunity to buy, then take it. Historic data shows that over a period of 10 to 15 years the property price always approximately doubles from the price you purchased it for initially.
@@alexkerrmortgage Thanks Alex
We have saved up a 10% of our deposit but our income is not great as I work part time and my husband full time but not on a great wage. Will this be an issue?
Thanks for your advice in advance 👍 😊
I would probably play about with a mortgage lenders affordability calculator to give you an idea of how much you could borrow!
What is your profession?
Are you a mortgage broker?
If yes, what is the name of your mortgage broker company?
Yes I’m a mortgage broker - Mortgage Chain Ltd - mortgagechain.co.uk