Help with buying house.

andrewmp

I've had an offer accepted today for a house.

The estate agent wanted an agreement in principle to seal the offer. A local IFA emailed this over and they are happy with that.

I'm not going to go with the particular mortgage company though as I rang a cheaper deal company Scarborough Building Society. They have also given me a agreement in principle but as the only did my deal via telephone I have to wait for them to post the info out and call back and apply proper.

The seller's estate agent want to know my solicitor is, the thing is I haven't arranged one yet. I used CMS conveyincing online and clicked "instruct" on their best price solicitor.

The house I'm buying does not have a HIP so I think I might have to pay extra but they have not mentioned it yet, they just said the solicitor would call me.

When will the mortgage company do the survey thing, they said it costs £220 and is just a basic survey and I might want to get another done. Will they arrange that as soon as I "apply" as long a I pass their credit check?

Sorry for a the million questions but I just don't have a clue!!

poppysarah

People will want you to rush into signing something. Don't.

Ask your solicitor to explain the process in simple terms.

The house not having a HIP is nothing to do with you. They need to make one for it. You shouldn't ever have to contribute towards that.

The online solicitor thing - you've "instructed" - do they have a phone number for advice? Or is it just email?

Don't rush - the house isn't going anywhere.

Hartley10

The agreement in principal is there to demonstrate that you have begun to look into mortgages and that you can afford a certain level. I do not believe that you have to take out the mortgage with the company that provides you with an agreement in principal. On the flip side I have in fact been given an agreement in principal and later failed their credit check because of a previous owner, so they aren't that much use!!

The solicitor thing - well yes they will want to know that to get the ball rolling so that the seller's solicitors can send yours the paperwork. If you are still waiting for your solicitors to confirm receipt of instructions just chase them up.

The HIP is the responsibility of the seller and not you. If the house was on the market before 15th December 2007 they may not need one (as long as it has been on the market without any breaks). If it does need one then the seller is responsible for obtaining & paying to get one.

As for survey - yes mortgage company will do one to ensure that the value matches with what you are paying for it. The "other" survey is one that people buying houses should invest in. This can be pretty pricey depending on who you use. This is a survey to protect you and will highlight any faults in the property i.e windows to be replaced, old boiler etc. If it highlights stuff you can go back to the seller and negotiate a possible discount.

Make sure your offer you made was "subject to survey".

Troubled_Joe

poppysarah wrote: »

The house not having a HIP is nothing to do with you. They need to make one for it. You shouldn't ever have to contribute towards that.

If it was marketed before Dec 07 then it will not need a HIP so it will cost more for the buyer in disbursements (ie. searches).

barnaby-bear

andrewmp wrote: »

I've had an offer accepted today for a house.

The estate agent wanted an agreement in principle to seal the offer. A local IFA emailed this over and they are happy with that.

I'm not going to go with the particular mortgage company though as I rang a cheaper deal company Scarborough Building Society. They have also given me a agreement in principle but as the only did my deal via telephone I have to wait for them to post the info out and call back and apply proper.

The seller's estate agent want to know my solicitor is, the thing is I haven't arranged one yet. I used CMS conveyincing online and clicked "instruct" on their best price solicitor.

The house I'm buying does not have a HIP so I think I might have to pay extra but they have not mentioned it yet, they just said the solicitor would call me.

When will the mortgage company do the survey thing, they said it costs £220 and is just a basic survey and I might want to get another done. Will they arrange that as soon as I "apply" as long a I pass their credit check?

Sorry for a the million questions but I just don't have a clue!!

At 220 that sounds like a valuation (usually 175 ish) - you probably want a homebuyer survey (usually 400 ish) so check. Whether a homebuyer survey is that useful is debatable - but they are some words you can google to understand...

andrewmp

Troubled_Joe wrote: »

If it was marketed before Dec 07 then it will not need a HIP so it will cost more for the buyer in disbursements (ie. searches).

Yeah, that's the situation here. I have to pay an extra £150 for these searches now than what i was quoted on the assumption there was a HIP.

Thanks for the advice everyone. The offer was just made as an offer and I didn't say subject to survey though :-(

So far, I've paid a deposit of £130 to the solicitors (well the company who put me in touch with them). Once I apply for the mortgage properly (key facts on the way in the post) then I will pay valuation fee of £220, I can opt to pay and extra £150 or something and get a homebuyers survey instead, I think I will do this.

I've given my solicitor's details to the seller's agent and they said they'd write to them. I also have to give the details to the mortgage company when I fully apply. Am I doing everything right so far?

geoffky

IF you havnt a clue what are you doing buying a house now...you havent a clue have you? do you understand the term negative equity if not i would look it up because its going to be your best friend for a few years to come...

cee2

Why do some people have to bring down those who are trying to buy houses at the moment, is it jealousy?
Maybe people are buying a home, not just a house and intend to stay in it for years to come.
If you buy a car on hp or a new telly on credit you are instantly in negative equity. Perhaps if people spent less time bleating on about 'negative equity being your friend for years to come' and more time on better things then life would be a more pleasurable experience.

andrewmp

geoffky wrote: »

IF you havnt a clue what are you doing buying a house now...you havent a clue have you? do you understand the term negative equity if not i would look it up because its going to be your best friend for a few years to come...

I know all about negative equity and it's possible future impact, I said I didn't have a clue about the buying process. I didn't say I didn't have a clue about finance.

You don't know I will go into negative equity. I have already negotiated a 35% drop from the "peak" asking price (yeah it was never worth that I understand). I am paying £12,000 less than the previous owner did 4 years ago (according to the land registry).

I have also put down a 20% deposit. Don't assume to know everything.

The way I see it, I could stay where I am (renting) and pay 22% more every month plus any future increases in rent due to inflation. Or I could buy this house and pay less per month and know for a fact that my payments will not go up for the next 25 years.

neverdespairgirl

cee2 wrote: »

If you buy a car on hp or a new telly on credit you are instantly in negative equity.

Both seem a pretty bad idea to me, to be honest.

neverdespairgirl

andrewmp wrote: »

Or I could buy this house and pay less per month and know for a fact that my payments will not go up for the next 25 years.

Are you certain about that? I'd check your mortgage offer, as very few are fixed for 25 years.