First Time Buyer Help

JLDL

Hi, I know this type of thread must be done thousands of time so i do apologise but i guess every scenario is different.
My girlfriend and I are saving up to buy our first house. We currently have c24K worth of deposit of our own money, by the end of the year (when we will start looking) we hope to have around 27k together not including any help from parents etc. (maybe a couple of thousand more).
Together, we have a combined income of about 75k p.a.
The type of house we are looking at would be somewhere between 200-240k, so obviously we would need a 90% mortgage or something in that region.

I apologise if some of my questions seem stupid, but we are novices.

In this day and age im assuming that i'd be more secure in a fixed rate mortgage, i find the knowledge of knowing what you pay each month invaluable, even if that would be more expensive over the 5 years, say of a term. However, after the fixed rate term ends, what happens then? Are you able to leave the lender for another lender? Does the second lender basically lend you the money to pay off the rest of the loan on your property and then you start paying them back (presumably at a better rate due to the fact the percentage of the loan on your house would be smaller by then). Is this what most people do? Would an early repayment charge basically negate any benefits of doing this?

Would a mortgage broker really help me get a better deal, or as a first time buyer would something as simple as MSM.co.uk help me find just as good a deal?
Also, what fees would i expect to pay?
When do you actually want to 'get' the mortgage? I.E do you go to bank/building society and say 'hi, im looking for a house, how much will you lend me?' then look for a house knowing you have money behind you, or do you look for the house first, agree sale then shop for a mortgage?
I know these are REALLY simple questions but my girlfriend and i are quite young (late 20's) and have no experience in this situation.
Any answers or advice greatly appreciated!

herbiesjp

However, after the fixed rate term ends, what happens then? Are you able to leave the lender for another lender?

If you have chosen a deal with no extended tie-ins, you are then free to shop around for a new rate to move on to, be it with your current lender or new lender. SOme lenders will charge an admin fee or closing fee (max £300) but no other penalties normally after your fixed rate has finished

Does the second lender basically lend you the money to pay off the rest of the loan on your property and then you start paying them back (presumably at a better rate due to the fact the percentage of the loan on your house would be smaller by then).

Yes - you swap to a new lender if need be on the same mortgage term and same mortgage balance left. That way you pay off the mortgage on the same date as set up originally (unless you want to change this). The loan percentage would depend on whether houses prices had gone up or down, and how much the mortgage balance had gone down by also.

Is this what most people do?

Yes - most people want to pay back as little as possible in interest. However it is not as simple as looking for the lowest rates - set up fees of the mortgage you are going to move on to, and exit fees for the one you are leaving have to be talen into account when looking for the best overall deal

Would an early repayment charge basically negate any benefits of doing this?

You would only normally incur an Early Repayment charge if leaving a lender during the fixed rate period

Would a mortgage broker really help me get a better deal, or as a first time buyer would something as simple as MSM.co.uk help me find just as good a deal?

I think the fact you are on here asking questions, means that you would need help with the whole process. A good whole of market adviser would explain the whole process, and take away the headache of the mortgage side of things from you

Also, what fees would i expect to pay?

If you mean for an adviser that can range from NIL to anything - however paying a fee does not necessarily mean getting better advice and vice versa.

When do you actually want to 'get' the mortgage? I.E do you go to bank/building society and say 'hi, im looking for a house, how much will you lend me?' then look for a house knowing you have money behind you, or do you look for the house first, agree sale then shop for a mortgage?

If you go to the bank you get the choice of 1 range of products - if you go to a true whole of market mortgage adviser you have the selection of the whole marketplace. You would be better off discussing with an adviser first to get a feel of what prices/mortgages you should be looking at (potentially get an agreement in principle to avoid any surprises further down the line especially in the current climate) And then based with that information you would have more confidence in knowing what you should be looking at and what mortgages you could get, and at that point put in some offers.

I know these are REALLY simple questions but my girlfriend and i are quite young (late 20's) and have no experience in this situation.
Any answers or advice greatly appreciated!

All the more reason a whole of market adviser is best for you:D

JLDL

haha thanks