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  • FIRST POST
    • DWhite1
    • By DWhite1 6th Dec 17, 12:21 PM
    • 1Posts
    • 0Thanks
    DWhite1
    Buying my first house!
    • #1
    • 6th Dec 17, 12:21 PM
    Buying my first house! 6th Dec 17 at 12:21 PM
    Hi Guys,

    Im new to this so you may have to bear with me!

    I've just put in my first offer on a house which is as exciting as it is nervous. We have our deposit and then around £1,000.00 on top of that which we will probably have another £1,000.00 at the end of the month towards this. The sellers are looking to move however, they cannot begin to look in the area they want to until the property is sold which is fine as we are in no rush.

    When (if all goes well and the offer is accepted) would i be expected to pay my mortgage deposit roughly? Also we have been made aware of solicitors, mortgage, insurance and surveying fees but what other up front costs can we expect?

    Thanks in advance for any help and advice!

    Dan
Page 1
    • anto164
    • By anto164 6th Dec 17, 12:23 PM
    • 135 Posts
    • 63 Thanks
    anto164
    • #2
    • 6th Dec 17, 12:23 PM
    • #2
    • 6th Dec 17, 12:23 PM
    Mortgage deposit goes to solicitors just before you exchange normally, but that could take months before you get to exchange contracts depending on all sorts of different cirumstances

    Other fees to think about - have you thought about white goods / furniture / changing locks etc? You seem to have captured most other things. Other than deposits for services like internet etc.

    Have you got a solicitor lined up? Don't go for in-house, they're expensive, and may not get you the BEST deal.

    Also, depending on value of the house, stamp duty? However from the government website;;

    Rates if you’re buying your first home
    You can claim a discount (relief) so you don’t pay any tax up to £300,000 and 5% on the portion from £300,001 to £500,000.

    You’re eligible if:

    you, and anyone else you’re buying with, are first-time buyers
    you complete your purchase on or after 22 November 2017
    If the price is over £500,000, you follow the rules for people who’ve bought a home before.
    Last edited by anto164; 06-12-2017 at 12:27 PM.
    • MRPEEVED
    • By MRPEEVED 6th Dec 17, 8:02 PM
    • 30 Posts
    • 6 Thanks
    MRPEEVED
    • #3
    • 6th Dec 17, 8:02 PM
    • #3
    • 6th Dec 17, 8:02 PM
    Fingers crossed your offer is accepted. If you are in no rush to move, you may not find the process stressful.
    1. Offer accepted.
    2. Instruct a solicitor. You may have to pay a few hundred pounds upfront to cover some search costs etc.
    3. If you have a mortgage in principle, they will perform a valuation of the house, normally a fee for that.
    4. If no mortgage in principle, you must get one now! You may have application fees when you do this.
    5. In regards to the mortgage, get all your paper work ready. Copies of bank statements, ID's etc...if you go through a broker there will be a broker fee. I highly recommend it but you may be looking at £500 for it.
    6. Once your solicitor has drawn up the contract, you simply wait for your vendors to get to this stage with their purchase.
    7.Then, when both parties are ready, you exchange. On exchange, you pay a percentage of the deposit (5%-10%). A completion date is agreed.
    8. On completion, all the funds are released and your solicitor will do all the financing side.

    It's a horrible thing, buying and selling, but exciting too.
    Just so you know, we are selling our home right now and purchasing another. Our bills so far (estimate)
    Mortage to pay off- £65000 (Not applicable to yourself_
    Early repayment charge on mortgage-£3345 (not applicable to yourself)
    Stamp duty- £500 (again, you may avoid this)
    Estate agent fee- £1680 (not applicable to first-time buyer)
    Solicitors fees for sale-£700 (your not selling anywhere so no worries)
    Solicitors fee for purchase- £800

    Then you have bank transfer fees and any additional paperwork charges.

    As a first time buyer you will pay alot less than if you were to be selling a home also. Your main conscern is mortgage. solicitor and broker fees.

    Good luck!
    • anto164
    • By anto164 7th Dec 17, 11:22 AM
    • 135 Posts
    • 63 Thanks
    anto164
    • #4
    • 7th Dec 17, 11:22 AM
    • #4
    • 7th Dec 17, 11:22 AM
    CHAPS fee - i missed this one on my above reply.

    I think the fee for the CHAPS payment of the mortgage amount was around £16.50 when we completed last year.
    • Firsttimebuyers
    • By Firsttimebuyers 7th Dec 17, 11:54 AM
    • 83 Posts
    • 30 Thanks
    Firsttimebuyers
    • #5
    • 7th Dec 17, 11:54 AM
    • #5
    • 7th Dec 17, 11:54 AM
    We're in the process currently, and our bills so far have been:


    £442 to bank for Valuation and Homebuyers Survey
    £500 mortgage broker
    £200 to solicitors on account to start searches, rest payable on completion


    We then have £6830 deposit when we exchange contracts (incl chaps fee)


    The remainder of our solicitor fees £559 on completion


    We need to set up Home Insurance on Exchange, so there'll be an initial payment possibly due there


    Then after that we've moving costs, luckily have all our own white goods and furniture in the house we're renting as we're also FTB - and no stamp duty now payable which has saved us £200
    • Mutton Geoff
    • By Mutton Geoff 7th Dec 17, 12:20 PM
    • 999 Posts
    • 1,042 Thanks
    Mutton Geoff
    • #6
    • 7th Dec 17, 12:20 PM
    • #6
    • 7th Dec 17, 12:20 PM
    We need to set up Home Insurance on Exchange, so there'll be an initial payment possibly due there
    Originally posted by Firsttimebuyers

    Only buildings insurance.


    If you wanted to be very moneysaving, you could take out a buildings insurance policy at exchange, complete within 14 days, cancel the policy under the 14 day cooling off period then take out buildings and contents from completion.


    If you felt this was morally wrong, you could take the new combined policy out with the same company so they still earn something from you.
    Compensations/Refunds from Banks & Institutions - £4,165 | Stooz Profits - £7,636 | Quidco - £4,014

    All with a big thank you to Martin and MSE.com from Mutton Geoff!
    • Firsttimebuyers
    • By Firsttimebuyers 7th Dec 17, 12:26 PM
    • 83 Posts
    • 30 Thanks
    Firsttimebuyers
    • #7
    • 7th Dec 17, 12:26 PM
    • #7
    • 7th Dec 17, 12:26 PM
    Only buildings insurance.


    If you wanted to be very moneysaving, you could take out a buildings insurance policy at exchange, complete within 14 days, cancel the policy under the 14 day cooling off period then take out buildings and contents from completion.


    If you felt this was morally wrong, you could take the new combined policy out with the same company so they still earn something from you.
    Originally posted by Mutton Geoff

    Very interesting point, thank you
    • MRPEEVED
    • By MRPEEVED 7th Dec 17, 12:58 PM
    • 30 Posts
    • 6 Thanks
    MRPEEVED
    • #8
    • 7th Dec 17, 12:58 PM
    • #8
    • 7th Dec 17, 12:58 PM
    yes, I forgot to mention home insurance. It must be in place on the day of exchange you will your first instalment then. pay it then.
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