First Time Buyer's Guide To Mortgages

techmax76

Hello,

We've just visited the house that were planning to buy. I have stored almost all the important information I have had read in this thread. Hopefully before the end of this year we can purchase that house.

Thanks.

EagerLearner

Lady_K - she would need a decent deposit especially if she is buying only on one income... we are trying to buy on two and it's tight even with a £30k deposit...

wyldbanana

Hi,

My partner and I are currently going through the process of buying our first home. We have found a new-build property and are buying through the Home-Buy direct scheme. We have recently had the mortgage valuation done and it has come back at £25.000 less than the developers asking price. When we placed our reservation fee down we negociated an incentment package which included legal fees and mortgate valuation fees.

We have advised the developer of the valuation survey and they have said that they will need to see a copy of the survey and will get back to us to see if they are able to reduce the property value, but stated that we we lose our incentives.

We are now unsure what to do?

Do we try to retain our incentives? what choice/s does the developer have and would they be able to sell the property at their asking price even though the property is overvalued?

Any help would be appreciated.

paroncider

wyldbanana wrote: »

Hi,

My partner and I are currently going through the process of buying our first home. We have found a new-build property and are buying through the Home-Buy direct scheme. We have recently had the mortgage valuation done and it has come back at £25.000 less than the developers asking price. When we placed our reservation fee down we negociated an incentment package which included legal fees and mortgate valuation fees.

We have advised the developer of the valuation survey and they have said that they will need to see a copy of the survey and will get back to us to see if they are able to reduce the property value, but stated that we we lose our incentives.

We are now unsure what to do?

Do we try to retain our incentives? what choice/s does the developer have and would they be able to sell the property at their asking price even though the property is overvalued?

Any help would be appreciated.

Hi Wyldbanana,

I don't know much about HomeBuy Direct, but we steered away from buying a new build after realising just how over priced it was.

You'll find that the prices the developer sets for the properties aren't quite in line with market value, so people end up paying a dear premium for the right to own a new house.

Depending on the price of the property, you'll find that those incentives actually aren't saving you much money.

We went from looking at new builds in the 250K region, and walked away when we managed to put an offer in (and have it accepted) for just under stamp duty level. Imagine: we were actually willing to pay 50K more but realised that was money we could use fixing this other place up.

Valuation and survey is costing us about £700, solicitor another £400, and about £300 for mortgage fee. To top it off, we've got out of paying for stamp duty. Your fees of course depend on the value of the property, but if it means you can pay £25K less, then it's worth paying for those 'incentives' yourself.

Good luck!

girly1

Hi I am trying to buy a house but having trouble saving deposit, i heard Nationwide are offering 125% mortgages, is this true? Would I need to be with Nationwide already? Would solve my problem!

_Andy_

girly1 wrote: »

Hi I am trying to buy a house but having trouble saving deposit, i heard Nationwide are offering 125% mortgages, is this true? Would I need to be with Nationwide already? Would solve my problem!

You will not be able to purchase a house without a deposit.

richie_bcfc

Hi all

was after some advise. Currently 21 and looking to buy a house with gf in the next 18 months . Currently havea bout 8 grand between us but plan on saving as much as possible. What would you recommened is the mimimum to have saved by the time were actively looking

much appreicated , great thread

_Andy_

richie_bcfc wrote: »

Hi all

was after some advise. Currently 21 and looking to buy a house with gf in the next 18 months . Currently havea bout 8 grand between us but plan on saving as much as possible. What would you recommened is the mimimum to have saved by the time were actively looking

much appreicated , great thread

Hi Richie

That depends on what house prices where you want to buy are like.
Minimum deposit you'll need is 10%, plus money for legal fees, (possibly) stamp duty (again depends on purchase value), valuation fee and the costs of moving.
You then need to think about costs of things like decorating, furniture, ongoing maintenance etc. Always more than what you think sadly!

richie_bcfc

Thanks Andy

was looking to reach the 18 grand amrk betweent he two of us leaving a few thousand left over for fees, moving etc tall order but surely makes sense to have a safety buffer

many thanks

_Andy_

That sounds good - definitely best to have some extra savings - the last thing you want to do is have the pleasure of owning a property but then have to get into debt to maintain it / do it up etc. Best of luck with it all.