When Anne and I shacked up together we moved up from London to Lincoln. Dahn sarf we had grown accustomed to the notion of having to stretch to a 4 x joint salary mortgage to be able to afford a small flat. In Lincoln it wasn’t going to need anything like that. In fact we could have easily bought a house on 3 x one salary.
We found a suitable gaff/love nest and off I trotted to the Halifax Building Society to sort the mortgage out. The manager gave me a grilling: did I know that buying a house was an expensive game, solicitors fees, furniture, deposit etc. We would need a fair bit of cash to get going.
I told him I didn’t have any savings but didn’t they do 100% mortgages? After all that’s what I did on my previous house. Ah thought the manager, what happened to the profit on that first house. It went on wine, women and male voice choirs I replied.
Realising that the interview wasn’t going too well I said that the only reason I was giving Halifax first refusal was because my fiancee had a savings account with them. Ahah said the manager. How much money does she have? Well every month she puts £20 in and every other month she takes £40 out I said:)
We left the meeting with him wanting to arrange to see both of us before making a decision. Sod you I thought. Who’d want to do business with someone stupid enough to not just give me the money straight away.
I went next door to the Alliance & Leicester Building Society. Told the manger I had all the cash for the deposit/solicitors fees/furniture etc saved up and that either of us could afford the mortgage payments on one salary. He offered me a mortgage on the spot and gave me the paperwork to take home and complete.
When I got home I rang Lloyds Bank to ask for a £5k loan to cover the house deposit. Where was I getting the mortgage from said the manager? A&L. Why don’t you get it from us said he? Do you do 100% mortgages then? No he said but I’ll lend you the other 5% as well!!!
That was over 25 years ago and we’ve been with Lloyds Bank ever since.
That’s how you go about getting a mortgage:)
Look out for further helpful financial hints from trefor.net at the weekend – coming soon how to with the lottery and other pie in the sky hopeless aspirations.
Other bank related posts:
New business accounts for startups
My first Banksy
Lloyds Bank – 2 out of 7 servers down
Photo: crocii near the Embankment tube station
3 replies on “Weekend financial advice – how to get a mortgage”
Yes, like Chairman Mao’s phrase let a thousand flowers bloom there is contrast twixt the image of the nature of success and the text which alludes to the nature of greed. As with China where those that stood out were cut down so it is with your picture – an apparent monoculture (or two) can be successful. Slow and steady (like at Dien Bin Phu) wins the race and whatsmore hope comes from the story of the banana, which is in trouble too through over exploitation but this will not be a disaster, according to Martin Clunes #HIGNFY as there is always the (French) apple.
Paul
I might mow the lawn today.
Your post made me smile 🙂
*Years* ago I used an excel amortization^ program to educate me on how to get shot of your mortgage. By increasing payments you can save SO much.
I’m lucky enough not to have had a mortgage for many years after paying off 2 mortgages very early by paying more. £thousands saved by making higher payments.
Handy, as now I have a very small income!
^ I think that’s the correct term.