Newbie house buyer help!

NovaBlack155

Hi guys and gals.

Myself and my long-term girlfriend have just had our offer accepted on our first house, which is really exciting. However im totally overwhelmed at what exactly i should spend my time doing this weekend with all the different things that i probably now need to sort / get the ball rolling ...


Firstly.. the mortgage..

The accepted offer was for £142,500 and we have a deposit of *around* £52k (can push a bit higher if necessary). We had an agreeement in principal through a whole of market mortgage broker about 2 months ago so we know we are on the right track.

I've gotten back in touch with him to search for some deals, and ive been looking into the places he cant e.g. hsbc.

We are currently looking for something along the lines of a 5 year fixed rate mortgage.

I've had a look at HSBC myself and the best i can find there is currently:

5 year fixed special :
Initial Rate: 3.94%
Fixed Until: December 2015 (5 year)
Length: 25 year
Booking Fee: £99
Overall cost for comparison : 4% APR
Max LTV: 60%
Monthly repayment: £448

At a push (a massive push!) this LTV ratio would require a deposit of around 40% £57k.. which we could JUST... JUST afford (although this wouldnt leave us with much left in our safety fund! And its probably best to try and keep this fund sizable just incase the worst happens, e.g. job loss etc).

Alternatively, (and probably more wisely) , the next best 5 year fixed rate, at 70% LTV ( requiring a deposit of roughly £53k leaving us with roughly 5k more retained in our safety fund ) is as follows, but requires a larger booking fee.

5 year fixed standard :
Initial Rate: 4.29%
Fixed Until: December 2015 (5 year)
Length: 25 year
Booking Fee: £399
Overall cost for comparison : 4.2% APR
Max LTV: 70%
Monthly repayment: £492




Again, i am a complete novice at this stuff, so these may not actually be good deals !


Having looked at hsbc further though, i notive they charge for a ''building survey and valuation report''. The fees look like they are set out as follows:

Standard valuation report - £175
Homebuyer report - £285
Building survey - £625



Can i expect to pay this fee (And a similar amount) whoever i get a mortgage with?? DO i have to pay for all 3 of those services ( £1085!!!)


Any idea if these seem like good deals???
Also are there any firther costs in this area i should be aware of?
Finally.. as i dont currently know when the sale will actually go through.. whats the deal with mortgages?. Do we just pay the non-refundable booking fee up front? (the £99 offer ends at thw end of october), and then don't pay anything else e.g. survey / valuation etc until we call back at any point in the next 6 months? (apparently 6 months is the time it is 'booked' for). What if things fall through.. do we just lose the £99, but arent tied into anything else?



Secondly.. solicitors..

We don't have anyone lined up at present. We have a bit of time before things really start rolling as the current property owner is still looking for a house to buy. now.. i cannot stress just HOW CLUELESS i am about all this... . What exactly do i do here? Whats the service im actually after and what do i ask for when i speak to them lol? can i just ring around and get quotes? Somebody was telling me that i peraps dont even need a solicitor, just a conveyancer... is this true?? As i said... clueless..


Finally.. anything else?

so.. what else do i need to sort here.. or expect to pay for?. Is it simply a case of getting a mortgage sorted, asking them to do the survey etc, and getting a solicitor sorted? Are there any steps ive missed out here???

Sorry if this sounds like im a total idiot, im having a bit of a mad stress tonight, after a manic week and not much sleep (I felt pretty level headed and clear about all this last week, honest!)

Is there not just a magic TODO list somewhere i can follow through lol. like a 'So.. you've just had an offer accepted on a property.. 7 easy steps to stress free homebuying' leaflet? Man that would be great!.


thanks for the help guys n gals!! much appreciated!!:T

dannyxx25

You will need a conveyencer (solicitor) to do the legal work, including your banks fees will probably be about £1,500 to £2,500 depending on what needs to be done. Anyway the hsbc sounds a good deal, better to go for 3 or more years, otherwise you may not be actually paying off any of the mortgage!

smcqis

the 40% 5yr fix is a good deal if you can stretch to this. A solicitor expects 800-1000 usually. Your in a good position, but who knows how long you will be waiting in a chain. Valuation you will have to pay other 2 optional i would say as they are surveys but best to ask

picklepick

here you go...

http://www.firstrungnow.com/how-to-buy-a-house/

njh82

Hey, congrats on the offer being accepted. Ours got accepted in July and we didn't have a clue either- still don't!

Lessons learned along the way though:
Get lots of solicitor quotes- if you can find someone who can recommend one get a quote too- don't just take the Estate Agents offer. When you do get one ask for a fixed or capped price!

We used these guys for the home buyer survey-its def worth spending the money for getting it over just a valuation. http://www.cwsurveyors.co.uk/
they were very helpful, try to arrange to meet the surveyor at the property near when they are done so they can talk through in person major concerns..be aware they will tell you EVERYTHING wrong so it can look scarey but not all of it needs to be fixed.

When it comes to getting info from the vendors etc push and push..if your solicitors aren't getting answers don't be afraid to call the EA and get them to try the vendors too- they want the sale to go through as they want their commisson!

not sure how old your new place is but we also got an electrical survey and woodworm check. None of these are included in the homebuyers and can prove costly. The electrical survey cost about £80 and the woodworm survey was free as they found nothing.

Also, if you can, get your solicitors to ask about neighbour noise and disputes..

Hope that helps! If in doubt just always ask the EA or solicitor- they are there for you to instruct them but they deal with FTB all the time and if its all legal jargon ask them to put it in lamens terms..they won't be offended and it will make sure you don't sign or agree to anything to don't fully understand

Good Luck!

jozbo

this site has a great guide - scroll down for different sections on conveyancing, surveys etc
http://www.moneysavingexpert.com/mortgages/house-buying-guide

you don't need to pay for a valuation, homebuyers AND building survey. The minimum the mortgage requires is a valuation. If you want to additionally get a building survey (recommended on properties over 70 years old or with visible issues) OR homebuyers survey (recommended rather than sticking only with the valuation) it's advisable to get these done through a seperate company - search the RICS website (google it) to find a chartered surveyor in your area, get some quotes etc..

They will communicate directly through you and not with your lender and since you get to pick the company you can go for someone with good feedback, nearby, etc as you wish

In general you have to go in with your eyes open, so take a deep breath and try to familiarise yourself with the steps ahead before you have to pay for them (!)

Also, I'd go with the 5 yr fix on the lower LTV if you can manage, even this means borrowing a couple of K from family if that's an option. On a 5 yr fix, the interest difference will be considerable. No point paying extra interest if you can avoid it.

Have you not considered a tracker mortgage at all? There are some great deals available, and they are much more flexible re overpayments and capital repayments meaning you'll be able to reduce the loan more quickly - and payments will reduce accordingly. Of course, the interest rate will rise..

Best of luck

NovaBlack155

Thaks for all the help guys REALLY appreciated.

I feel like i have my head screwed on a little better today and im feeling far less overwhelemed so thanks!!! :beer:



Im putting in an aplication online later for the better rate HSBC mortgage listed above. I went to my local branch today to chat to someone, but as expected they don't open saturdays (typical). My nearest saturday branch is a good 35 minutes train ride away... so i just phoned the hsbc mortgage help team and ran through some questions with them. Do you think its ok to make the initial application online? or should i book an appointment in the big 35 min away branch for next saturday and go speak to somebody face to face?

Good news.... after some probing questions and evasive answers, HSBC have stated they are willing to let me carry out an independent building survey in place of theirs (got a quote from a well reviewed RICS registered bunch - miller metcalfe surveys - for £330 , thats HALF what hsbc want for the full building survey!!).

Hopefully the application should go through without a hitch, then ill have the £99 booking fee to pay.

Also got referred to a good conveyancer by a family member (used them for 4 sales), so ill call up monday to get a fixed price quote (Expected to be in the region of around £350).

I *think* thats the main things covered... (am i missing anything? lol).

josievg

The £350 for the solicitor will be for their fees to which VAT will be added. On top of that there will be other charges - all should be listed when they supply you a written quote but a few may be hidden in the small print.

These will include things like searches (approx £300), land registry (approx £200), SDLT form (approx £50) plus a few smaller ones like identity check (approx £10), transfer fee for transferring money (approx £30), etc.

You will probably have to pay your bank's legal fees too - either to their solicitor or to your own if they also act for your bank.

How old is the house you are buying? As mentioned above you may find the survey finds dated electrics so you might need to pay for a specialist electrics check too. This cost us approx £80.

The survey is bound to find some little bits and bobs that need doing so a fund for the highest priority stuff is useful too.

Removals is another thing to budget for and will vary a lot depending how much stuff you have and whether you can do it yourself in a van or whether you need to hire a proper removals company.

Good luck. Hope the process goes smoothly for you.

tiggerjj

Ok, breathe!!!

I know you have been recommended a sol, but even so it would be a good idea to ring round a couple and get some ore quotes, see how they are on the phone to you, my friend chose her sol not because they were the cheapest but because when she first spoke to them, they didnt patronise her or speak in legal speak, she could actually understand them!!

Survey wise, it does depend a little on the general condition and age of the house, i bought a 1920's house and got a homebuyer survey (it was through woolwich but i checked up on the surveyors on the RICS database anyhow)

After the survey I had a damp survey done, but it was by a damp company who obviously wants work afterwards, you can find damp surveyors who dont work for damp companies and therefore arent gonna be trying to sell you something but you will have to pay them for the report. I also had a gas check done for 50 quid (make sure they are gas safe registered(-old CORGI)) I also got my electrics tested, and found out i needed a rewire....

Dont stress too much, I managed everything when i got my place and I was working 80hour weeks in Jamaica through the whole process. Just read up where you can and take each step at a time....the best thing for me was that I had a sol who i could completely trust, which really reduced my stress.

Best of luck and enjoy it!!!!!