I earn 40000 per annum. This is my gross. My take home after all deductions (NI / Tax) and taxes would be around 2550. I am not putting in any money for Pension. Iam planning to buy a house in London. I have no interests on Flats.
My budget is maximum 220000. I am looking in and around East London for a 3 BHK House. Hopefully I will find one.
Here is my scenario - :mad:
I have been living in the UK for the past 2 and half years. I am not a British Citizen and I will apply for my PR(ILR) in 2015.
I do not own a credit card (infact never had a CC).
No loans till date.
Working on Permanent Employment.
Can manage 40000 to 50k as Initial Deposit (Saving hard for this, Hope everything will be fine).
Iam 31. Married and my wife is a home maker. No kids so far.
Till last year i was living on a shared accomodation. From this january (Jan 2013) i have been renting a 1 BHK Flat with 800 as rent alone + coucil / gas / electric / water extra
Recently i discussed with Barclays Bank (Here is where my salary is credited).:eek:
First question she asked as "Have you found a property". I said NO and continued "if i know how much maximum i qualify for, then i can look out for something in that budget".
Then she started explaining things.
I was not satisfied with the way she explained things. She was so cautious that she did not even give me the paper where she wrote few calculation and some figures for estimation and retained it saying for security / data protection reasons (not sure if somebody can scam this bank or another bank with a scribbled thing on a plain A4 sheet paper). She asked if she can take a credit check for me. I said Ok. And she did it. I was expecting a report. But after getting few details (like previous address / name / DoB) on a computer screen, she just said iam qualified for a mortgage and i may be given 170000 as loan for an estimated 210000 property.
Infact she did this by showing the screen to me and the end result was nothing. It just said something like passport missing or iam not a citizen for which she said it is fine.
She said, she will need the following if iam going for a mortgage -
1. A letter from my employer.
2. Proof of Deposit
3. Proof of rent payment for the last 12 months (For this i said i lived in a shared accomodation until last year, but she replied back that even a letter from my landlord would do and this proof may be required by somebody - actualy forgot whom she refered. But she said they will need it).
4. Salary Slips (since my salary is credited there, so she said there will be no problem with that).
She also said something in these lines - for the next 3 months, how many ever times you do a credit check with Barclays, it will just be considered as one check. And if you approach some other bank, you can ask them to call me back for any details so that i can tell them that a check was performed and it was ok).
Iam planning to visit another Barclays Branch soon and take some input though.
So
Respected Boarders,
Respected Senior Members,
Respected Mortgage Subject Matter Experts,
My friend said to me that I should buy a credit card (or loan) and keep paying payments correctly on date so that my credit score will improve. I am not that comfortable doing that. But if needed, i will do it. Please advise on this factor.
Also answer this important one please -
Can you all please advise me how should i proceed and what is the actual process for mortgaging - step by step please - and what all should i consider before / while mortaging so that things are smooth and i dont get into any trouble or loss (loss = agent or others charging me more or unnecessarily cheating and charging me) ?
Please take some time and reply guys.
Thank you all so much for your time...:cool:
My budget is maximum 220000. I am looking in and around East London for a 3 BHK House. Hopefully I will find one.
Here is my scenario - :mad:
I have been living in the UK for the past 2 and half years. I am not a British Citizen and I will apply for my PR(ILR) in 2015.
I do not own a credit card (infact never had a CC).
No loans till date.
Working on Permanent Employment.
Can manage 40000 to 50k as Initial Deposit (Saving hard for this, Hope everything will be fine).
Iam 31. Married and my wife is a home maker. No kids so far.
Till last year i was living on a shared accomodation. From this january (Jan 2013) i have been renting a 1 BHK Flat with 800 as rent alone + coucil / gas / electric / water extra
Recently i discussed with Barclays Bank (Here is where my salary is credited).:eek:
First question she asked as "Have you found a property". I said NO and continued "if i know how much maximum i qualify for, then i can look out for something in that budget".
Then she started explaining things.
I was not satisfied with the way she explained things. She was so cautious that she did not even give me the paper where she wrote few calculation and some figures for estimation and retained it saying for security / data protection reasons (not sure if somebody can scam this bank or another bank with a scribbled thing on a plain A4 sheet paper). She asked if she can take a credit check for me. I said Ok. And she did it. I was expecting a report. But after getting few details (like previous address / name / DoB) on a computer screen, she just said iam qualified for a mortgage and i may be given 170000 as loan for an estimated 210000 property.
Infact she did this by showing the screen to me and the end result was nothing. It just said something like passport missing or iam not a citizen for which she said it is fine.
She said, she will need the following if iam going for a mortgage -
1. A letter from my employer.
2. Proof of Deposit
3. Proof of rent payment for the last 12 months (For this i said i lived in a shared accomodation until last year, but she replied back that even a letter from my landlord would do and this proof may be required by somebody - actualy forgot whom she refered. But she said they will need it).
4. Salary Slips (since my salary is credited there, so she said there will be no problem with that).
She also said something in these lines - for the next 3 months, how many ever times you do a credit check with Barclays, it will just be considered as one check. And if you approach some other bank, you can ask them to call me back for any details so that i can tell them that a check was performed and it was ok).
Iam planning to visit another Barclays Branch soon and take some input though.
So
Respected Boarders,
Respected Senior Members,
Respected Mortgage Subject Matter Experts,
My friend said to me that I should buy a credit card (or loan) and keep paying payments correctly on date so that my credit score will improve. I am not that comfortable doing that. But if needed, i will do it. Please advise on this factor.
Also answer this important one please -
Can you all please advise me how should i proceed and what is the actual process for mortgaging - step by step please - and what all should i consider before / while mortaging so that things are smooth and i dont get into any trouble or loss (loss = agent or others charging me more or unnecessarily cheating and charging me) ?
Please take some time and reply guys.
Thank you all so much for your time...:cool: