JCScooby

Me and the girlfriend are considering buying our first house together. We are entering the unknown here as we still both live at home with the parents (a bit embarrasing). Anyway im just wondering how u guys/girls found buying you're first house?
We are just worried about how we are going to hack all the bill paying and stuff (had it fairly easy at home when i look at it now). Most folk just tell us "oh it all works itself out, it'll be fine".
Im just looking for any good advice anyone has to offer.
Mortgage advisers?

fitzscoob

Just been through the same thing right now.

First thing to remember is that the mortgage is only 1 of your regular bills, there will be loads of other bills.

View all types of property, even if something is 5/10k over your budget, people are flexible to the right situations.

Get as much cash as a deposit, then factor in all the extras, solicitors fees, decorating fees, then you have to furnish the place.

Best of luck

Moonloops

As well as using Mortgage advisers I always check on www.thisismoney.co.uk to get a feel for what offers are around..

SWRTWannabe

As a first time buyer, you are in a good situation, as people will be looking for the shortest chain possible when moving - therefore you may have room to haggle down the price a little. (Unless you are buying our house which is currently on the market, then I'd offer a bit more than the asking price )

In terms of the bills, when my wife and I started living together, we set up a joint account and paid a set amount into it each month - enough to cover the regular outgoings with a little to spare. We then paid all the bills from that.

Getting your first place is one of the most daunting but most exciting things, and it is so good to have something you can call your own - good luck!

JCScooby

If u buy through an Estate Agent do they cover everything for u and sort everything out? I just dont want a million different people to remember who i have to get to do this, that and the next thing.

Pedro_79

Are you and your gf planning to get married soon?

If not, then I very strongly recommend you get an 'in case of split' contract written up before getting a joint mortgage. I can't remember the exact name.

Me and my ex bought a flat together 3 years ago, but we ended up parting ways 18months later. Fortunately it was an amicable split, and she wasn't after any money. But if she had been feeling greedy and seeing £ signs ther would have been a big problem. Even though I put up the entire (15k) deposit and payed 80% of the monthly bills, she would have been entitled to half.

With regards to Estate Agents, I would say it's a good idea to go see a mortgage advisor at Bairstow Eves. It's free, and they are sometimes able to get special deals.

C_B_B

A lot of the banks produce a little booklet aimed at the first time buyer. It guides you through the process of purchasing and will have a section for you to budget the likely outgoings in.

Don't do your mortgage direct with the bank, go to an independant broker, who can offer mortgages from the whole of the market. They sometimes have access to better rates than the bank offers the customers who go direct.

Don't pay the asking price. DON'T tell the agent when you offer on a house that you'll increase if needed, it's a classic mistake, the agent is working for the vendor (seller).

www.nethouseprices.com is a good site to use to see what you should roughly be paying. Do be warned though, it's not always that accurate, ity normally falls down when giving details on the type of property but a drive by should tell you.

And don't forget the stamp duty thresholds.

SupaMiniCupa

Best of luck mate, I asked a similar thing a a couple of months ago, may be useful:

http://bbs.scoobynet.co.uk/showthrea...ight=household

...although I've still yet to take the plunge!!

ChrisB

See AdviceNow for information on co-habiting.

tarmac terror

iTrader: (2)

Finding the right house and agreeing the price is not the complex part. In my experience it is the solicitors who add the stress factor to buying a house or moving house.

Look at loads of places - its like buying a car - the first one you see is rarely the best example. Work out your bidding strategy, but dont get to attached to the idea of living there until the key is on your key ring. Don't be frightened to offer under the asking price, as a first time buyer your move is not dependant on a sale or another person further down the chain. If you see something you really want consider tempting the seller with a bid above the asking price, but time bind it; if they dont accept that offer join the bidding war once your offer has time expired.

The mortgage you go for will be to a certain extent dependant on your appetite for risk. Currently my mortgage is fixed at 6% for the duration of its term. Bit of a bugger when interest rates are at 4.5%, but i will be smiling to myself if they ever hit double figures. I know i will be paying out a constant amount which I am happy with.

If you are just starting out with life insurance consider taking individual policies - no one wants to think they will part company from their partner, but it happens, with two policies you can continue on with yours and she will keep hers, saves having to start from the bottom up second time round.

The fact you are asking the right questions and doing your homework means it is unlikely that you will be caught out in the cold.

Its great craic buying your first place, but depending on your circumstances you may need to be prepared to cut back on the holidays, nights out or share one car until your get used to the regular outgoings.

Good luck with the move

TT

ewanrw

Get an advisor.

Just bought "our first home" with me lady. We were lucky as our advisor was a friends mum so it was free. She sorted everything, mortgage - 4.5% fixed, life assurance (I'm a tricky one as I have previously broken my neck - extra forms), house insurance and gave us loads of advice. And we got an "incase of split" agreement as well.

Its expensive tho'. The mortgage is the cheap part - bills (phone, electricity, gas, broadband, tv licence etc), council tax and the aforementioned extras add a fair whack on top.

Well worth tho'

all the best

ewan

davyboy

Nationwide mortgages are usually the cheapest if you qualify.

Some might seem cheaper, but in the long term they rarely are.

SimonGawthorpe

My advice is dont buy now................THE CRASH IS COMING!!!!

Si

(puts on flame suit!)

paul-s

What happens in the event you buy for example a 150k property, 90% ltv and the value drops enough that the mortgage is more than can be secured on the reduced price of the property ??

in the event of a price drop of course

JamieMacdonald

Err, negative equity.

SimonGawthorpe

You get a headache and join the large queue of other people this is going to happen to!!

Si

fast bloke

negative equity only matters if you are trying to sell the house

MikeCardiff

iTrader: (2)

OP - first thing you need to do is sit down and work out exactly what your bills are going to be. Just because you 'qualify' for X amount mortgage doesnt mean you can actually afford it.

Ideally, your mortgage payment should be no more than a third of your take home pay, this will leave another 50% for the bills, any debts, car costs, food etc... and leave you some free for contingencies or saving for holidays, furniture etc...

If the mortgage repayment is more than 50% of your take home ( this will of course depend on what you earn, but as you sound fairly young and are a FTB I'm guessing you're not earning millions ! ), I'd think very seriously about if you should be buying or not. What would happen if you or your gf lost their job ? could just one of you afford to pay the mortgage ? Can you rent a similar property for less ( you can in a lot of cases now due to the high buying prices ).

While it is exciting, buying a house is the single biggest debt you'll take on in your life, so dont be in too much of a rush - especially as the housing market seems to have pretty much peaked now, and stalled altogether in a lot of places. Waiting 6 or 12 months could save you a good percentage on the purchase price. You really dont want to rush into something you cant afford and fxxk it up as the consequences are pretty bad.

One other thing to check with the mortgage - as a FTB you should get a good deal for the first few years - work out what the payments are likely to be after this ends, and also what they will be if the interest rate rises by 1%, 2%, 3% and so on - its pretty shocking how much extra you'd need to find to make the payments. Bear in mind the interest rate has been at its lowest for years, so isnt likely to be going down in the near future !

You can ask the current owner what they pay for council tax, water, gas etc... to get a good idea of what it will cost you to live there.

MikeCardiff

iTrader: (2)

#17 - or if something happens and you miss one payment - my bets are the mortgage companies are going to be pretty hot on anyone with NE this time around.

MattN

It's a trust deed and you can't buy a property (with more than one person) without it.

There are 2 ways it works (your choice),

1. In the event of death the property/loan passes over to the other applciants
2. In the event of death it's passed over to next of kin.

You also get to stipulate if one wants to buy the other out etc. timescales and what not, all pretty straight forward.

Patt@firstime

Sound advice.

Petem95

I dont think it takes a genius to work out that houses are overvalued.

The problem is that the winners of overvalued house prices are;

a) estate agents (who are always on the TV talking up prices)
b) the government who win cos chavs borrow against the rising value of their homes to buy X5's and designer clothes with BIG brand names on and when people die they receive 40% of the houses value. The chav families also get to bleat on about how much their homes worth.

The losers are everyone else. If you already own a house then you need to find a lot more to trade-up. Young people cannot have families because they cant afford to buy.

Yet the media (especially BBC) take the attitude of "Great News!! House prices are going up!!!" - but its not good news really.

I think prices will crash, but it may not happen for a few years yet. The government are determined to keep prices high so that consumer spending levels remain high and keep the economy in good shape.

VTEC to Turbo

The only piece of advice I can give you (bought in August for the first time)

Sort a joint bank account - with your GF now. Start paying a couple of hundred in each per month, that way as soon as you find a place you have money set to one side ready to pay for fees etc (you also need to give this account to the mortgage lender).

We didn't do this and as we were moving so quickly, I had to give my account details, changing them took an age and payed the first months mortgage twice (once from each account).

Both of you pay into this account, so that all the bills come out of one account (including food). It's also better to overpay into it rather than underpay.

Speak to the estate agents mortgage advisor (we did and he was a good guy that gave us decent advice), he actually found us a mortgage deal that no one else could match.

Also try and get a solicitor on a recommendation (it will make such a difference) I used my mates uncle. From viewing the place to moving in took 5 weeks (and that was with a one week delay from the seller). Always phone to see what is happening, I phoned about 5 times a week.

There are some good house buying magazines (can't remenber the names) there should be a flow diagram with all the step to buying a house available in one. Helps no end seeing it in front of you.

The main thing to remember is don't overstretch yourself, think about interest rate rises and what you can afford to pay. A good mortgage advisor should go through this with you.

Good luck mate.

Jay m A

iTrader: (2)

General costs upfront:

Solicitor £500: plus about £150 for local searches
Survey £500: for homebuyers, add £150 if you decide to go full survey
Stamp duty: 1% of purchase price (assuming under £250k)
Mortgage application: £250ish although you can add this to loan if money is tight

For getting the best mortgage deals and general advice regarding monthly outgoings I used Your Move http://www.your-move.co.uk/html/default.htm who are independent, I can't speak for all branches but my local one gave excellent, clear advice when I was a FTB. TBH it doesn't take long to work out if the advisor the other side of the desk has decades of experience or the same amount as you bar a 6 week training course!

Monthly outgoings will be (or need to be considered)

Mortgage
life insurance (needed if going joint)
critical illness cover (not a definite requirement)
redundancy cover (not a definite requirement)
buildings insurance (if freehold, not required if leasehold)
contents insurance
Gas / leccy
maintenance charge and ground rent (if leasehold)
phone / broadband
tv / sky
water
drains
council tax

Try to get a solicitor / surveyor/ mortgage advisor recommended to you, IFA's may charge £700ish to supply a mortgage but it could be money well spent in the long run.

The suggestion of getting a joint account set up now is exactly what I did, all the joint monthly outgoings came out of this account, then half the monthly requirement came from a standing order from each others separate accounts. It certainly helped when I split up with her!

It’s a massive step, which will push you financially for a while. I read a report a few years ago that said FTB's mortgage repayments were 40% of net income on average, which is manageable. Back in the bust of the 1990's FTB were over 60% net in a time where interest rates were higher, hence a 1% rise in rates back then really increased the monthly payments.

Usually a fixed rate mortgage (or certain versions of the theme) may not be the absolute cheapest rate on month one, but at least you know exactly what your next 12 - 18 months or so payments will be so you can get used to managing your money. Beware of long tie in periods and huge redemption penalties though.

good luck

King RA

You're always going to be a little apprehensive the 1st time, I know was. Worrying about the outcome, or your performance will always take it's toll.

You're best off taking it slowly, if you rush the whole thing we be over too quickly, and you won't feel the sense of satisfaction these things bring. Of course once things get going you can speed the process up, but you need to make sure all parties come out of the deal happy.

Do your research, you don't want to get 'any old house', make sure you choose the right one, you never know, you could be there an awfull long time, so get it right 1st time.

Remember, you need to be open to 'new ideas', the old tried and tested ways may be the best, but allow your mind to be open, this is the modern age we're living in remember.

There's some ruthless people out there, so don't allow yourself to get shafted, it's you that wants to do the shafting

HTH.

King RA.

JCScooby

Thanks a lot folks for the sound advice. As a few people have asked, me and the gf have no immediate plans to marry although it is something we talk about. The plan is that the mortgage will be in my name as i earn a fair bit more than her, she is totaly fine with that.
I like the idea of a joint account to take care cof bills.
We would want to go for a fixed rate mortgage as i hate not knowing what might be round the corner.
Thanks again folks.

Smiler

Some very sound advice already given.

Go for fixed rate if you want but please ensure it's redeption penalty doesn't go beyond the fix.

With the mortgage tale all costs into consideration

Application fee.
Mortgage payment
Is there an insurance tie in? Do you have to take their indurance? Is there a £25 fee of you don't?
Mortgage redemption costs for when you become a rate tart and move elsewhere

TopBanana

The Woolwich are doing a *10 YEAR* fixed mortgage at 4.67%. Quite a bet against inflation. They know what's coming...

P1Fanatic

Nasty if say they split up, need to sell and the early repayment charges come into play.

Simon.

P1Fanatic

Me and my gf bought about 18 months ago. My advise is dont get caught in a bidding war and dont get too upset if you lose a house. We bid on 3 before this one and got outbid on 2 and lost on the other due to the fact the other couple were paying a 50% deposit therefore less chance of probs with finance.

Gutted at the time hat was lucky for us as we then found a much better house for a couple of £k more.

We must have viewed over 40 properties before we settled on this one. View anything that matches your price range and spec - pictures dont often do properties justice and vice versa.

We went for a 3yr fixed mortgage so we always know what our mortgage payment is. We also had a "Declaration of Trust" document drawn up by our solicitor in case we break up. As my gf had a lot more money for a deposit (inheritance) I borrowed some from her as a loan so we both went in with equal deposit.

We also pay about £25 a month for redundancy cover for both of us which kicks in after 1 month. Well worth it in the current climate and the fact we both work for the same company.

Luckily my company paid for a lot of stuff as part of a relocation package inc solicitors fees (conveyancing and dec of trust doc), mortgage fees, stamp duty, removals, survey and lump sum for furniture etc. Without that we would have had to buy a house for about £10k less to stump up the cash.

List of other monthly costs that you may wish to take into account:

Council tax
Electricity
Gas
Water
Phone
TV licence
DSL / Cable
Sky TV
Home ins (building and contents)
Life ins (we get a policy through work but worth thinking about)

Cheers,
Simon.