First Time Buyer's Guide To Mortgages

Kelzabells

Hello everyone

This enquiry is actually for a friend, she is going to look into the FirstBuy scheme where you only pay 5% deposit and the government and building contractor give you a 20% equity loan,so therefore you mortgage the house on 75%, has anyone had any dealings with this, and is it any good? It looks more desirable than part rent, part buy as you own 100% of the property.

She is on about £21k a year and single, but her Dad said he will help with the 5% deposit. Any advice would be much appreciated. x

Kelzabells

goodmorningsunshine wrote: »

Hi all

My question is; If you have to finalise everything within 25 days ......

Do you arrange a mortgage yourself (Is it cheaper?) OR

Do you ask a financial mortgage advisor to arrange one for you as they would be able to finalise one quicker than trying to arrange one yourself. (Do they charge you for arranging a mortgage for you?)

Thanks from a confused FTB

Hi, going by my own financial advisor, you dont pay them a penny, and they arrange everything for you, they make their money in commission from the bank or building society that they sell to you.

Always go with an independent and NOT a single bank or building society advisor as they tend to only sell their products.

I would always get professional advice in all honesty...

kingstreet

Kelzabells wrote: »

Hello everyone

This enquiry is actually for a friend, she is going to look into the FirstBuy scheme where you only pay 5% deposit and the government and building contractor give you a 20% equity loan,so therefore you mortgage the house on 75%, has anyone had any dealings with this, and is it any good? It looks more desirable than part rent, part buy as you own 100% of the property.

She is on about £21k a year and single, but her Dad said he will help with the 5% deposit. Any advice would be much appreciated. x

There are many threads on here about the pros and cons of shared equity. I suggest you search the issue, as a post on here is likely to go unanswered as it's not really about mortgages...

kingstreet

Kelzabells wrote: »

Hi, going by my own financial advisor, you dont pay them a penny, and they arrange everything for you, they make their money in commission from the bank or building society that they sell to you.

Always go with an independent and NOT a single bank or building society advisor as they tend to only sell their products.

I would always get professional advice in all honesty...

What you are describing isn't independent mortgage advice. Your broker is offering a whole market service, not independent advice. A whole market broker selects only from mortgage lenders and products which pay a commission. A fee may also be payable on top.

An independent broker agrees a fee with his client at the outset. The broker will select from all mortgage deals, including those which pay no commission, such as those offered by Yorkshire BS and HSBC.

If the best deal for you is one which pays a commission, the independent broker will rebate this commission back to you when the mortgage completes. This can subsidise the fee, or perhaps even pay it altogether.

goodmorningsunshine

kingstreet wrote: »

What you are describing isn't independent mortgage advice. Your broker is offering a whole market service, not independent advice. A whole market broker selects only from mortgage lenders and products which pay a commission. A fee may also be payable on top.

An independent broker agrees a fee with his client at the outset. The broker will select from all mortgage deals, including those which pay no commission, such as those offered by Yorkshire BS and HSBC.

If the best deal for you is one which pays a commission, the independent broker will rebate this commission back to you when the mortgage completes. This can subsidise the fee, or perhaps even pay it altogether.

Would either of the above be able to complete in 24 days and counting ?????

kingstreet

It is possible to achieve a short completion using a broker or going direct. If you have everything you might need to support the application, you can achieve a mortgage offer within two or three days. My last Halifax case was keyed on tuesday and offered on thursday.

It's the legal work which takes the time and having a solicitor who can deal with his/her side quickly and efficiently is the key to a short completion.

goodmorningsunshine

kingstreet wrote: »

It is possible to achieve a short completion using a broker or going direct. If you have everything you might need to support the application, you can achieve a mortgage offer within two or three days. My last Halifax case was keyed on tuesday and offered on thursday.

It's the legal work which takes the time and having a solicitor who can deal with his/her side quickly and efficiently is the key to a short completion.

Well I saw my broker? tonight and was not best pleased with the result. I know nothing of the workings of all this,so maybe someone could tell me if this is the norm, here's what happened ....

I had done some(!!) homework with mortgage calculators to find out what I would be paying as a rough estimate, but the figure he came up with was 28.00 a month more and the arrangement fee would be double what I found on the internet (it's a small mortgage) plus the insurance (assurance) of around35.00-39.00.

When I stated I was not interested in this, I was told I could either take the insurance out or his fee would be 1%, it was up to me, either or.

The fact that he stated he had ordered a survey on the property which was done today and that he had papers ready and waiting for my signature, nothing had been discussed. I know I need to move on this, but I did not ask to get a survey done, although the building society will require one, when I stated I would like to try and get my own mortgage, he said I would need to watch just incase I was charged for ANOTHER survey!!:( Although taking that into consideration I would still be around 800 pounds up.

We didn't fall out and I was told if I couldn't manage it all be Monday, he would still be able to help.

Is this the norm?

Sorry it's a long winded story, but like you to know all the facts and I AM DESPERATE!!!! to solve this.

Oh, and my solicitor said he would need around 4 days to sort things out, which I thought was reasonable.

Mr_Bigg

Hi Everyone

I going to purchase a house with my partner (not married) and I have saved the 10% deposit and have just got an agreement in principle for way over how much we need.

I have a couple questions though.

How hard would it be for me to sort all aspects of the house buying process myself? What I mean is the financial adviser based at the estate agent says they are "whole market" with no fee meaning they only look at the mortgages that pay commission to them I have found 2 mortgages that probably wont come under this header 1 with the post office one with Yorkshire building society.

The financial advisor offers a lot of help for all aspects but if I can do all the things myself it could work out cheaper for me.

So should I go with the estate agents financial advisor or find a mortgage by myself or even go with a broker?

Second question is me and my partner have agreed that as I am paying the deposit plus all the initial one off costs if the worst does happen I should get my deposit back first then we split the rest 50/50. Would the solicitor dealing with the housing buying process be able to deal with this situation or would that be separate person?

Thanks in advance

mary1949

Mr_Bigg wrote: »

Hi Everyone

I going to purchase a house with my partner (not married) and I have saved the 10% deposit and have just got an agreement in principle for way over how much we need.

I have a couple questions though.

How hard would it be for me to sort all aspects of the house buying process myself? What I mean is the financial adviser based at the estate agent says they are "whole market" with no fee meaning they only look at the mortgages that pay commission to them I have found 2 mortgages that probably wont come under this header 1 with the post office one with Yorkshire building society.

The financial advisor offers a lot of help for all aspects but if I can do all the things myself it could work out cheaper for me.

So should I go with the estate agents financial advisor or find a mortgage by myself or even go with a broker?

Second question is me and my partner have agreed that as I am paying the deposit plus all the initial one off costs if the worst does happen I should get my deposit back first then we split the rest 50/50. Would the solicitor dealing with the housing buying process be able to deal with this situation or would that be separate person?

Thanks in advance

I would always avoid any estate agent based adviser. They are too close to the agents who would be working for the seller not you. Keep it separate.

Speak to a whole of market broker. Some of them will now include 'direct only' products in their recommendations. I use a local chap which I pay a fee of £200 to use. He gives me details of ALL deals available and if we go with one that pays him commission we dont pay the £200 if it's a direct application that will not pay commission we pay him £200 to sort it all out.

The other way would be to use a whole of market (commission based broker) and then look at the direct deals yourself to see if you can find something better.

Personally, I would rather use a professional that knows if the application will be accepted.:)

Wantahouse_2

I have a quick question about Mortgage Brokers. At what stage is it advisable to go see one. We have about 10% saved up already, but think 20% would probably get us a better deal. Is it worth going to see a Mortgage Broker now to see what deals are available at 10% and what the difference would be if we did wait until we had the 20% or should we just wait until we have the 20%?
Thanks