FIRST TIME HOUSE BUYER

[SCOTTE999]

Well think its about time i sorted out a house for myself now, looking to get onto the property ladder so im just looking for as much advice as possible really.

what things are a must, what things to avoid etc.

who is the best mortgage company which ones to avoid etc.

any unfor seen costs that might trip me up.

any advice to a newbie would be a great help,

thanks in advance

[scenario8]

Well, my first advice would be go and see a mortgage adviser/advisor. Preferrably an IFA (who is likely to be better qualified than a mortgage advisor or broker, and almost definitely a better bet than the salesperson sat in your local bank). Most will work effectively for free (they will be paid by the mortgage lender you ultimately use). Nothing is more important than getting a proper fix on what you can afford. You may find a good mortgage broker sitting towards the back of an estate agency, or by googling away, it doesn't really matter at this point.

Once you know your budget I'd take a wander to rightmove.co.uk and go window shopping.

Honestly, I'd only go as far as day dreaming before you have got an angle on your finances. You might be wasting your time other wise - and everyone elses. Come back to us at this point.

Best of luck!

[Simpo Two]

For something as simple as a mortgage, I don't see the point in putting an IFA in the middle - merely another salary to pay.

[lauda]

Simpo Two said:

For something as simple as a mortgage, I don't see the point in putting an IFA in the middle - merely another salary to pay.

Providing you have a basic understanding of key aspects of a mortgage (interest rate, early redemption penalties, etc), I'd be inclined to agree with the above. The internet is a powerful tool and there's unlikely to be anything that a broker or IFA can offer you that you can't find for yourself.

The major limiting factor as a first time buyer is likely to be finding a lender that will be prepared to lend with a lower loan-to-value ratio (unless you're a paticularly lucky first time buyer and have a 15%+ deposit).

After that, just make sure that you don't sign yourself up to something which looks affordable now with base rates at 0.5% but ends up doubling your payments over the next couple of years as interest rates start to rise.

[Goochie]

Do you currently rent a place to live in on your own, or are you living with friends/family?

The general overheads associated with running a house can often be more expensive than many people appreciate. There is more to owning a house than simply affording the mortgage.

[BoRED S2upid]

Don't whatever you do buy the biggest house you can afford. A mate of mine could afford £100,000 mortgage so what did he buy, a £100,000 house, this ofcourse maxed out his income and hes left being a mortgage slave with no free income. After a couple of years the house needs some repairs probably £4000 obviously hes struggling with the massive mortgage so these repairs are on hold. He could and should have bought a cheaper house, he could have got one for £80k which would have been a lot more affordable. Start small and work your way up.

As for Mortgages fixed rate is the way to go for a first time buyer especially with the state of things at the moment, possible change in government, interest rates only going one way over the next few years. Stick with fixed rate then you know exactly how much you will be paying every month, its all about budgeting.

Buy the worst house in the best area rather than the best house in the worst area.

What other pearls of wisdom do I have... New builds? I have a couple of friends in new build appartments. Ok they give you the minimum amount of space but everything is new nothing goes wrong and my god are they insulated, in this weather its a case of going to see these guys for a warm as its so bloody cold in my house.

[SCOTTE999]

Thanks for the advice so far guys,

would you go for a fixed rate repayment or variable??

im looking for the pros and conns of both please

thanks

[spikeyhead]

SCOTTE999 said:

Thanks for the advice so far guys,

would you go for a fixed rate repayment or variable??

im looking for the pros and conns of both please

thanks

On a fixed rate mortage you'll know how much you're going to be paying for the next three to five years.

On a variable rate, when base rates rise, and they will, your mortgage payments will rise. It's quite possible that they'll triple over the next three years.

You do have a big deposit saved? if not, start saving and come back once you've got 15% of a property saved up.

[rovermorris999]

As has been mentioned, buy the worst house in a good area, not vice versa. I've always looked for property to which I can add value. The easiest way is to buy a tatty but structurally sound house and repair it and clean it up, especially if you can diy. But only if you can diy well or you may knock money off it.
If you have half a brain and can read, you don't need an IFA. Don't immediately take fright at the survey results, there'll be so many 'mights', 'it appears that', 'houses of this age can...' etc to cover their arses. Get someone you trust who has been there and done it a few times to look at it, just look for the grey hair.

[RizzoTheRat]

Talk to an IFA as well as looking for stuff yourself, you don't have to take the product they offer you, but in my case the IFA found a better deal that I could by hunting around the internet.

Do the calcs to work out how much you can afford to repay, probably changed a bit now but when I was looking 4 years ago lenders were happy to lend me far more than I thought I could comfortably repay. Don't forget to take in to account household bills, council tax, insurance, etc.