tallsteve

A bit general I know. Thinking of taking a first step on the housing ladder (I know - property crashes, negative equity etc etc!) but am slightly in the dark when it comes to mortgages.

Main things I need to know about are:

1. Type of mortgage - What is the difference between a standard and Australian style mortgage (something to do with interest calculations?)

2. Overpaying mortgages (to reduce length of loan) and associated + and - points.

3. Amount of mortgage based on earnings, is it 3x / 4x salary or higher?

4. Employment status - I'm technically self employed so would I need to jump through any extra hoops?

Think that's enough questions for now!

Steven

imlach

1) "Australian" style is where the interest is calculated daily rather than monthly or annually. This means any overpayments are factored in immediately, rather than at the end of the month/year....which means overall, you'll pay less interest in total over the term of the mortgage.

2) If you can afford to overpay, then it's great. You reduce the term of your mortgage and pay less interest overall. Not really any minus points. Just watch out - most mortgages generally limit the amount you can overpay during you initial fixed/discount/capped period.

3) Old rule of thumb re lending limits is generally 3x for single applicant. If joint applicants, it is 2.5x joint salary, or 3 x 1 salary plus 1 x other salary.
However, lending limits vary a lot these days.....self certification is one method to get a bit more...

4) If self-employed, self-certification is one route to go down. Your accountant and/or yourself need to supply some proof of earnings for the previous n number of years. However, even if self-employed, you can still apply for normal mortgage products so long as you have accounts to show them etc....

washer

need a morgage no fees up front a very honest guy no messin around self cert no probs ive got 3 give im a ring 0151 342 4646 and say you got the number from washer goodluck