What do I need for first time house buying?

markwilliams82

I'm in the process of buying a house with my partner, we've had an offer accepted on a house and have a mortgage agreement in principle.
We've got a meeting with the mortgage lender again this week to get a formal application so the whole process can begin. We've got our solicitors for the conveyancing and have provided all relevant details to the estate agents, building society and solicitors.

What do we need to do now?

I'm looking at critical illness cover and all the other things we'll need but a bit confused about whats what and whos the cheapest and best to go for, because we'd rather avoid using all the protection offered by our mortgage lender (Halifax)

Any help would be really appreciated.

before_hollywood

i am in a similar position to you, i found the articles on the site really useful.

for insurances you will need as a minimum buildings insurance in place for completion day, personally i have considered buildings for completion and contents getting added a couple of weeks later when i move in

i went through a mortgage broker and their insurance covered life and not redundancy, i wanted it the other way round with redundancy covered and not life (single so no partner or kids to leave the house to)

Rossa_3

You may need to look at mortgage protection insurance. You only need a term plan which is the cheapest option. Mine costs £14 a month for £85k. Pays off the mortgage in the event one or the other of you dies prematurely so the house is left mortgage free. You/partner then wouldn't need to cover all the costs alone or have to sell if the remaining partner couldn't afford to live there on their own. May not be essential right away but if you're planning a family in the future I would say it's a must have.

I would also look around for contents insurance and make sure it covers your furniture etc in transit i.e. when you move. If you're using a removal firm they may offer cover but it may be pricey. If your favourite mirror or something valuable got broken in the move you know you are covered. Think it comes under "contents away from home" cover. You can get competitive quotes via the comparison sites from MSE. Look at combined policies buildings and contents and separate policies as sometimes it works out cheaper having 2 rather than one. I'm using Sheilas Wheels at the moment, though I shop around every year to make sure I get the best deal.

Brokers get paid commission so a bit of legwork on the 'net means you can buy direct from the insurer. I went through a broker for mortgage protection which used to cost me £25 a month. Moving my policy saved me over £120 a year. Better in my pocket than his. BTW the policy is transferable so if you move again in future it can go with you. Just pays out a lump sum, not dependent on where you live etc.
Only thing to watch with critical illness is how soon they pay out. Some policies seem cheap but then you find they won't make a payment for 6 momths. That's ok as long as you're the sort of person who has some rainy day money set aside to cover bills in case of redundancy or accident/illness.

markwilliams82

thanks for all your replies, very helpful to read other peoples opinions.

For the moving of furniture etc its our first house so dont have much to move and on the plus side I work for a courier company so I'm planning to borrow a van through work to move the stuff myself.

Home and contents insurance is pretty much sorted and I understand that one, and i've had a good quote through Tescos.

But I'm still confused over critical illness cover and mortgage protection......is there a difference, which do i need or do i need both? I had a critital illness quote from direct line for £38 per month on a joint policy for me and my partner but with one payout. any help would be appreciated as the Halifax quoted us £120 for cover if we take it with the mortgage.

Please help, this is a pretty scary and big thing to be going through, I've asked parents but they havent moved house in so long things are all so different and they dont know what to suggest. last thing i want is to make the wrong & expensive decision

poppy10_2

Mortgage protection covers you for redundancy as well as critical illness. It's generally not the cheapest option to buy your insurance from your mortgage provider. Have a look at Martin's guide here:

http://www.moneysavingexpert.com/mortgages/payment-protection-insurance

bobby-boy_2

Hi Mark
if you are brave you don't need mortgage or critical illness insurance! Its not a requirement from your lender like buildings insurance is.
For example if you are self-employed ( I know your not as you work for a courier firm) you would struggle to get this cover at a reasonable cost.
I don't have either of theses polices so I have a rainy day fund for unemployment and don't care if I am dead.

Just giving you an other point of view rather than saying you mst choose one or the other insurance.