Graduate Mortgage - Quick Question

Joey_3

I have been reading some of the threads in this forum and it has really helped my understanding in what seems like the very confusing world of mortgages. I will most probably be back to ask more questions at a later date , but at the moment we are only just beginning to look into mortgages.

I have a quick question to ask about graduate mortgages.

I am a graduate, but my boyfriend earns more than me - many of the graduate mortgages I have read about use the graduate's salary as the main multiplier which is no good for us - is this the case with all graduate mortgages?

Joey_3

Also, can someone please confirm all the extra charges when taking out a mortgage?

I know about stamp duty, MIG's (which appear to be the same as HLC's - can anyone confirm this?) and any charges if you use an IFA who charges (we are hoping to find a fee free IFA). What other costs are involved - e.g. legal fees? Do we need to get a solicitor?

hethmar

I think you need to google for a website for first time buyers or even ask your local building society for a leaflet on it.

There is no stamp duty if you buy in some inner city, regeneration areas, so it may be worth you checking that out.

Joey_3

Thanks.

We've been doing a lot more research and some things are now clearer. I think we are going to be better off getting a regular 100% first time buyer mortgage rather than a graduate mortgage, but we need to ask around first and then go to an IFA.

I think we will need to pay stamp duty where we live, it's not inner city or being re-developed.

Careful_girl

There is lots of info in this thread http://forums.moneysavingexpert.com/showthread.html?t=209805
You will need a solicitor although I have known people who did the conveyancing themselves. I wouldn't.
As for the charges here are some i remember, if I forget any those on here will add to my list!

Solicitors (Searches, Electronic Funds Transfer Fees, Land Registry Fees, Stamp Duty, Stamp Duty Land Tax agency Fee and photocopying!)
Mortgage Lender fees
Broker fees (if you are paying one but there are excellent ones who are fees free)
Removals company
Post redirection

Estate Agents only ask for a pound of flesh if you are selling.
I think that is it.
CG.:j

Joey_3

Thanks very much Careful girl. We won't need removal fees or post redirection as we're hoping to buy the house we're currently renting (we know the landlord and he is wanting to sell soon).

How do we go about finding a solicitor? Will an IFA help with finding one?

Careful_girl

I looked in the yellow pages years ago! I found one locally which was a member of The Law Society. I suggest you get some recommendations. Soliciors can hold up proceedings if they are too busy or inefficient. I happily recommend mine, I have used them on a number of occasions and the other I used ([EMAIL="OH@S"]OH'S[/EMAIL]) wasn't as good. They are http://www.dflegal.com. i have used them even when i wasn't local to them with no problem.
Good Luck!!
CG.:j

Joey_3

Thanks, I'll ask our local friends if they have any recommendations.

hethmar

Definitely use a solicitor and ring round for their fees - you can find they vary an awful lot - small town solicitors are usually cheaper than big cities.

And do use one - my friend who had been to law school decided he would do his own conveyancing - he was held up for ages I think it was because the other side werent happy dealing with someone who was a d-i-yer and tried to make it more difficult than necessary. Also your solicitor will have the right contacts, be able to ring to exchange and complete and send funds and all in all its worth the money.

Joey_3

Does the fact that we know the current house owner make any difference?

Careful_girl

It only changes the fact that I don't think the vendor needs an estate agent so the price could be lower. You still need to have the searches done as you need to know whether he owns the freehold etc and all sorts of stuff which you would need to find out to satisfy a solicitor. Even if you were happy to buy cash in hand then you when you come to sell it your buyers may not buy because they find something disagreeable to their sols. For example, the house I am buying has no planning permission for the extensions. This needs to be sorted out. Have a chat with a solicitor about it all. They would explain better!!
CG.:beer: