super_si

Just started looking at house etc.

Any advice would be grateful as i wasnt prepared for the predicament im in.

So far just seen lloyds TSB seemed a tab high.

Cheers

Si

CooperS

Get yourself a mortgage adviser, doesn't cost you anything as they are paid by the mortgage companies when you take out a mortgage. make sure they're on a recmomendation.

Just going through the same thing mate, finally sorted my 1st house out @ 27 :-S

super_si

cool im just about 24. But found out 3 weeks ago ive baby on the way. So got to act quick to get a stable environment its a nightmare

S

Proby521

iTrader: (1)

Good advice yep, get yourself an advisor. I went through, and had picked out what deal I wanted before the advisor had gone through them. I find building societies tend to give better deals than banks. Nationwide & Abbey National both usually offering good rates.

Proby

richardg

if you're unsure of anything at at time, ask those around you who have already been through the process. you are bound to feel a bit overwhelmed by the whole thing at some point, but that's normal. don;t make any on the spot decisions and don;t be pushed into making decisions you're unsure of without running them past someone whose opinion you value

start off as you mean to go on. as soon as finances permit - ie either now or as soon as you complete - set up another bank account and pay your approx annual outgoings divided by twelve in each month. that way you shouldn't have any shocks with budgeting. this isn't totally bullet proof as there are always unforeseens, but it should assist

good luck!

super_si

yeah thanks. Was off to see the yorkshire bank + RBS. Got to use the old man as Guarantor to begin with

S

CooperS

It can be intimidating to start with, but it's quite simple when you get into it, I've done very little (apart from write cheques) :-S

swtmerce

I used to be an independent financial advisor (IFA) so I went back to my old colleague for him to sort the mortgage. Just waiting now for the offer. I eventually went with a Nationwide 2 year tracker. Great rate, no penalty after the 2 years and also I can make extra small lump sum payments without penalty too.

Only advice I could give is to go to a fully independent IFA or fully independent mortgage broker (some will say they are independent but are actually tied to a large number of companies - the point is, it's not the whole market). Use a website like www.fool.co.uk to get more info about the products that are out there - remember that even though when you choose an independent broker, they may still have a good relationship with just one or two companies so it pays to be aware of what's in the market generally.

richardg

good point swtmerce. penalties are well worth avoiding. many people get stung for these either because their circumstances change or they decide to move. read the small print
[we're with nationwide too. very pleased with their service so far]

jaytc2003

iTrader: (1)

when checking houses out as well, check for little things like drains in the garden. We have got 3 manhole covers in ours which means we cant have a conservatory without the expense of having the drains moved. (dont want to have covers in the conservatory)

hades

www.fool.co.uk doesn't cover all the best deals by any means either; I've just got approved on an offset that has a lower "overall cost for comparison" and is certainly better for me than all bar one of their best buys. Browse a few more, personally I quite like http://www.moneyfacts.co.uk/

Be aware that some of the better deals you'll see are quite restrictive on income multiplier and/or LTV (Loan to Value - i.e. you need a decent deposit). Both of these issues can make them inaccessable to first time buyers. For example, the Hinkley & Rugby products with very good rates on the fool website are limited to 3* salary maximum loan, whereas many others will lend 3.5*, 4* or even higher in certain circumstances.

For the sorts of mortgage I wanted, the best rates were from Coventry BS, Yorkshire BS, Abbey or Woolwich, who all do plenty of competitive products. Northern Rock also generally have pretty good deals and depending on circumstances can be quite generous with income multipliers and LTV

I took advice from 3 different IFAs who all recommended products. None of them are as good for me as the best 4 I tracked down myself off the internet, and one of them involve a middle man getting a fee (which ultimately will get charged to you somehow). Sorry to all the IFAs out there, but if you know what each type of mortgages means, what you need and what you can afford, I don't believe you need a Financial Advisor. Having said that, an awful lot of people don't know the above.

Finally - good luck with the homebuying.

B9GLY

alot depends on your circumstances, how much you earn, outgoings, currnt loans etc etc and how much you are looking at borrowing, i went with northern rock last year as they would offer me substancially more than others plus they had alot of deals for first time buyers!

brumdaisy

I still havent found anyone who can beat the alliance and leicester. They do offer quite a broad range which can seem confusing, but after an intensive spreadsheet session I worked that that they all cost pretty much the same over a two year period (average length of tie in). The different options are simply tailored to different situations i.e. no arrangement fees and cash back = slightly higher rate, low rate = a few charges up front.

I also find them fairly 'nice' people who get on with the job.... well apart from the time they 'lost' my mortgage a few years ago but everyone makes mistakes and they did bung me a few quid as compo

CooperS

Check out www.moneysupermarket.com which will give you the real cost of a mortgage (fees etc) included over your fixed rate period etc.

swtmerce

And when it comes to conveyancing the cheapest I found was a company called My Move Conveyancing. I was going to use them but then I got a big discount through a personal recommendation.

If you didn't already know, to buy a house you need to add up:

deposit
stamp duty
conveyancing costs
various search costs
loan fee (can be added to the mortgage itself sometimes)
survey report fee
moving in costs i.e. furniture etc

Happy head-scratching!!!!

super_si

i thinkin rent will be easier for 5 yrs. The other halfs got to give up her nursing . So maybe once shes working again we can buy!

S

TopBanana

Interest rates are on the up, as are reposessions. Now would be a bad time to get on the housing ladder

hades

Interest rates are presently the same as they have been for several months, unless I missed something within the last few days. Granted, they are likely to increase sometime in the near future, but they aren't "on the up" at the moment.

If I had £10 for everytime I've heard that "now would be a bad time to get on the housing ladder" over the years, I'd have paid off my mortgage completely by now. Perhaps this time you're right, but a lot of people have said that and been wrong over the last xx years. I was told that when I was looking at buying my first place. Instead, I bought at 22, and have made £130k on the sale of my 2 houses in the 11 years since. OK, it's not money in the pocket, but I'd not be able to afford a 4 bed detached in Berkshire and a comfortable lifestyle without that equity.

Petem95

They arent on the up "now", but interest rate futures are factoring in rises. Also rates in most major economies have been on the up, which increases the likihood of the UK rates following suit.

You've done well mate, but then assuming you bought 11 years ago, that would be 1995 which was pretty much the trough of the last housing market crash, and prices have risen every year since (ie you bought at the best possible time in the cycle). Regardless of whether you think prices will crash or not, I think most people would agree we are pretty much at a "peak" in prices..

If you watch property programmes from a couple of years ago, the EA's generally bang on about "strong underlying fundamentals" maintaining the very high prices, those being "low interest rates, and high unemployment"... I dont think they'd be saying that now with unemployment having risen for something like 16months in a row, and most agreed that rates will start going up sooner or later.

B9GLY

i dont think there is ever a bad time to get on the property ladder for the first time! you need to own a property at some stage!!!!!!

stevebt

iTrader: (8)

get a mortgage but get the rate tied in for 5 years or longer??, that way you can take up cashback offers etc from the mortgage companies and not have to worry about any penalties, and if the rate does go up your fixed

Deep Singh

[QUOTE=Petem95]


You've done well
If you watch property programmes from a couple of years ago, the EA's generally bang on about "strong underlying fundamentals" maintaining the very high prices, those being "low interest rates, and high unemployment"...

How does high unemployment help property prices?

Very bad advice from Pete and Topban. For someone in it for the long run, there is no bad time to buy as long as you don't overstretch. People like Pete have been calling a crash since 1999, some prices have increased by 50%+ since then

swtmerce

I can see this becoming a very long threeeeeaaadd!!!!!

I got my offer today and am waiting for the solicitor to complete matters. I am over the moon and don't believe any of the hype.

Even in the last crash, if you bought a new build, you still didn't lose money. If you can afford it, buy a new build now and guarantee yourself that return!

hades

Pete - it's been a while since I studied economics, but generally high unemployment tends to be a sign of recession. Recent (since ~1980) govenment policies tend to broadly follow monetarism (with the exception of Gordon Brown's IMHO total mis-management of the PSBR, but that's a different subject) and favour reducing recessionary indicators via spending booms by reducing interest rates. If you go back a bit to Keynesian economics, the control mechanisms are different, but it would still tend to recommend interest rate cuts to help with unemployment. Therefore, I'd suggest your links with unemployment are probably a bit flawed.

I didn't and don't disagree that rates are likely to go up - but not by a massive amount at the moment, as I suggest the economy is not in a position to sustain large increases without causing a recession.

I'd also comment that when I first bought in late 1995 (actually with delayed completion in early 1996), I don't remember anyone saying it was now the bottom of the "trough" and that they were expecting house prices to rise soon. In the same vein, my most recent house went up by 10% in just over 2 years, and everyone was saying before I bought that that the market had peaked and was heading for a big crash.

Also worth noting that there is always a certain amount of supply and demand that comes into the sale of houses, same as with any other commodity. Allegedly (OK, this is relying on data from some of the "expert commentators" who have often been wrong, but are in many cases the same people who're saying "expect interest rates to rise") in many areas of the country demand still outstrips supply, which will tend to keep prices high

Got to generally agree with B9gly and Deep. In the long run, there doesn't tend to be a bad time to buy a house. OK you might not do well if you're in it for short term profit, but the point is you're after somewhere to live. Never forget either that rent is always subject to inflation, the amount outstanding on the mortgage isn't . . . .

swtmerce - not quite sure why buying a new build prevents you from losing money; a lot of people seem to pay a premium for brand new. Obviously it's a good thing though if you've got a good deal by buying "off plan". I'd suggest the best way to not lose money is simply to buy in the right location in the local area (some districts / suburbs will go up more / drop by less than others for various reasons) and get a good deal on the sort of house lots of people are likely to want to buy.

Petem95

Interesting assumption there deep, seeing as I almost bought a place at auction to let out in 2001 and again in 2002...

Seeing as I contract and dont work in a fixed location as a result, I would only buy in my current situation if I felt it was going to be a wise investment, and IMO it would not be.

I expect I will continue contracting for another 5years or so, and if prices are still at this sort of level when I decide to settle down, I will simply move overseas - as a lot of the younger generation will do. Not good for the country, but maybe you think differently.

super_si

might be stupid but how do i go about seeing a Independant advisor?

Si

CooperS

My local estate agents had one was based there

jowl

All I can say mate is good luck. I'm first time buying at the moment - at the age of 29. Mortgage is proving to be a PITA as I'm self-employed.

(sometimes thing it would be easier being a full time criminal!)

super_si

what order should i do things?
At the minute ive seen lloyds, off to see RBS wednesday.

Cant really buy till Oct/nov. So what should i do in the mean time?

gf's usless so gotta do this by myself really.

S

CooperS

Order I did things in:

Phoned Estate Agent for viewing, they arranged

Met owner to view at property

Put offer in with Estate Agents, they liaised with vendor and we agreed price

Phoned HSBC to get morgage agreement in principle (estate agents wouldn't take it off market until I had proved I could afford it) although they said it was considered as sold

Phoned local solicitors and instructed them to act on my behalf on the purchase

Arranged to see IFA, met them and found best mortgage for my circumstances

Paid Solicitors for Land Registry searches

Went to solicitors and went through all draft contracts, signed and sent off to vendor's solicitors for approval

Received phone call from my solicitors saying completion date is next Monday (17th)

In the meantime SAVE SAVE SAVE for deposit!!