First Time Buyer

jamesa007

Hello all,

Just about to buy my first home!

I have £20k deposit and looking at houses around £180 or £190k total value.

I have a mortgage in principle from my bank (Barclays) but want to know where might be a good place to look for banks who offer a 10% deposit rate? this would allow for more money to put into the house once purchased.

Many thanks

James

happybroker

there are a few 90% around now but you will notice a fair increase in the rate payable, think really carefully about this one.

jamesa007

What do you mean?

Would it be worth waiting until the new year to see what happens.

I am going to miss out on the stamp duty freebie but is that really that important?

Cheers

happybroker

the banks don't really want to lend at 90% so price accordingly, think of a plumber seeing a job he really didn't want to do. He would put in a price that would either make it worth his while or put off the prospective customer.

look at best buy tables and speak to a good whole of market broker, I think that given the fact you are at the very begining of this journey you have missed the stamp duty window already as you would need to complete prior to 31/12. The limit was £175k anyway.

Israfel

It will cost you nothing to go see most independent mortgage advisors and just get an idea of whats out there. Make sure it's whole of the market. It's probably worth doing as when I bought I ended up getting a mortgage with a building society I'd barely heard of. Make sure you're aware of all the mortgage types and what you'll end up paying back in the long term.

Wutang_2

Israfel wrote: »

Make sure it's whole of the market. It's probably worth doing as when I bought I ended up getting a mortgage with a building society I'd barely heard of. Make sure you're aware of all the mortgage types and what you'll end up paying back in the long term.

Didnt they tell you who your mortgage was with???

OP, if its a bank or building society you havent heard of, don't let that put you off - if its a good rate and all the T&Cs are in order then don't let that sway you!

jamesa007

excellent thanks.

Think I'll hold fire till the new year and certainly seek out advice from an independent.

Very scary buying my first house but can't wait to be on the ladder!

Any updates or more advice grately apprecatied.

thanks all so far!

Israfel

James,

I completed on friday on my house and I was a first time buyer. it is scary but exciting at the same time. Here's some tips and advice for you.

• Expect it to take about 2 months or more from offer accepted to completion even if there's no chain. It is a long process, you'd be lucky if it took less time.
• Get all the advice you can and shop around as much as you can. Going to see an independent mortgage advisor could give you a lot more mortgage options you may not have thought of. You'll also get a good idea of what the upper limit of what you can borrow will be.
• Hire a recommended local solicitor. It will cost a bit more than internet solicitors however you will save the money in the long run in time and stress (I'm telling you from experience). When you do come to buy avoid Wolstenholmes like a plaque, check out threads on the forum to see why.
• Put aside around £1000 from your budget for solicitors/surveys etc

Good luck with it all

bubblybee

Hi James,

Me and my otherhalf are starting to think about looking for a house again - a previous one fell through in 2007 and since then we have been busily saving from a 5% to 10% deposit. As a first time buyer with a very small deposit, I feel that my options are very limited and will ultimately have to pay a hefty price to start on the ladder and wait until my pay rises.

Our other option is to save for another 18 months. While noone knows what is going to happen to house prices or interest rates, I like you want to get onto the housing ladder and feel that in balancing up all other matters, we just have to bite the bullet. By saving another 7,000 we would be at 85%LTV but only really paying 70-80 less a month. I know overall it's the rates that counts but as a 30 year old FTB with university debts with a 37 year old boyfriend, time is ticking on. For me, it feels right to start looking.

Good luck with your search.

phlash

Why not start with a house that costs a little less?

I may be stating the obvious here, but have you factored in how much this would cost each month? I mean not just the mortgage costs itself, but included buildings insurance / council tax increases (presumably) / mortgage insurance etc??

Personally, in the current climate I would be wanting to put down at least a 15% deposit which is a house around the £133k mark for you.

bubblybee

phlash wrote: »

Why not start with a house that costs a little less?

I guess it depends on where the OP lives. In my area the houses at £133K at in very deprived areas which personally I wouldn't want to go to as then you have to deal with increased car/house insurance, anti-social behaviour, etc. Perhaps its the same where the OP lives?