First time buyer needing few pointers

TrevUK

Hi all

I've been thinking about flying the nest so to speak for sometime now, although never really been overly serious about it. Mainly as my work is just around the corner and i am fairly comfortable living at home, and of course it's nice and cheap.

I have money saved up for a good 10 years of working, so i have a nice deposit to be able to put down.

What sort of things should i be looking at doing for my first few steps? Obviously knowing the type of property (Flat, House, etc) is going to be helpful along with the area, but in terms of mortgages what should i be looking out for? There is so much out there and much of it appears very confusing. I have looked at a few 'mortgage calculators' but it does vary! I'm on £27k p/a and i'm looking at getting on average 10% bonus minimum each year. No car loans and credit card is always paid of each month so no debt other than a mobile phone bill. What sort of mortgage value can i be looking at if putting down lets say...£20-50k deposit?

Other than just looking at rightmove.co.uk are there any other helpful sites that are useful for first time buyers?

As for credit searching, i'm an motor finance underwriter myself so know that 27 years at current address and little to no credit outstanding with no missed payments or adverse on me or family won't cause any problems.

Feel like a fish out of water so just looking for the next step really with what to expect and what questions to ask/get asked.

TrevUK

Hmmm, i think i might have put this in the wrong forum?! Should be in the one underneath?

herbiesjp

In terms of mortgage amount you could be looking at between 4-5 times your income. This will depend on what kind of score you get with the individual lender to decide to go for.

Add on the amount of deposit you have - and that will give you a rough purchase price that you can look at

hostman

I'm in the same position as you. My partner and I are actively seeking our first home.

Few pointers I can give based on our experiences:

1) Get an agreement in principle with a lender, either do it yourself or go through a broker / independent financial advisor - When we've contacted Estate Agent's to arrange viewings, they have all asked about our mortgage situation and are pleased when we say we have an agreement in principle, as many folk when they start looking havn't got this far and therefore less likely to buy. Of course it does not mean full mortgage acceptance is assured, but its a good starting point.

2) Research ALL costs involved with buying. Depending on value of the property you buy and its relation to stamp duty, the cost of buying, even as a first time buyer, the cost will be approximately £2000-£3000, which includes mortgage fee, solicitors, stamp day, valuation, survey. Also research the costs of "running" the property, gas, electric, council tax, mortgage, insurances etc.

3) Install Property-bee (http://www.property-bee.com/) and look for price drops in your intended purchase areas. The market is dropping and dropping fast, you'll be amazed at the falls out there. Our own situation: 13 months ago we wouldn't have been able to buy a house, it would have been a flat, fast forward to today and there are approximately 300 houses within our price range. This is dispite joint income of £49k, so that shows how overvalued its all been this last 6-8 years, fueled by ever increasing leveraging, rather than fundermental affordability - Boy do I feel good its all changed! You can now (almost) buy a house without cripling yourself finanically.

4) When you view properties, do your research on their previous sale values. If you're after a bargain then look for a motivated seller, i.e. usually someone who bought some years ago (pre 2003), therefore less to loose by accepting lower offers and is in a position to move quickly. Talk to the vendors and EA's, EA's are usually willing to discuss quite openly. Best place to look up previous sale values (for free) is https://www.houseprices.co.uk.

5) Consider buying a repossession. We viewed one last week, although we decided the work required was too much for us to take on, they can be a great way to add future value and cusion yourself from further falls in average prices.

Hope that helps and good luck.

louby_lou

im in a similar boat - will subscribe and add any info as i find it