First Time Buyer with HEAPS of questions!

fimonkey

Hi All.

I'm new to the forums, but regularly read Martin's pages/updates etc.

My situation is that I'm due to inherit £30 -35K (in about 4 months time). I have £10K debt which I intend to pay off, then I want to use the remainder as a deposit on an expensive shed in Dorset (where I currently live).

1. Are there any step-by-step idiot guides you would recommend in terms of beginning the process, finding right mortgage, basically just 'how it all works' etc. - My problem is coming to terms with the language and terminology used (and my maths is rubbish too).

I have read Martins Mortgage advise and I intend to use Charcoal online to find the right mortgage, then process it through London and County. Is that right? (or have I got things mixed up, i.e. L&C should find the mortgage and then I process it through Charcoal)?

2. I've also recently read that you can have a mortgage deal set up, and you don't have to action it for 6 months. (damn wish I'd known this before interest rate rises today). Would it be a good plan for me to go and get the mortgage in principal now then? - Though this confuses me, surely you need to know how much yuo want to borrow before you can arrange a mortgage? I may want to borrow anything from 90K to 110K. What would I tell the mortgage ppl?

3. What's the best chain of events, do you have to view the property first THEN get a mortgage THEN make an offer? Or should I get the mortgage (but see 2, above) THEN view property THEN make an offer?

4. What's the best way to find a solicitor to handle the conveyancing etc?

I have tonnes more questions, but I'll leave it here for now.

Many thanks in advance

Fi

Leon_W

Your best bet is to seek out a LOCAL whole of market fees free broker.

I deal with lots of first time buyers with plenty of questions just like you have every day, and there really is no substitute for face to face advice. A good broker advises on the WHOLE process, solicitors, how to handle agents, getting a mortgage agreed in principle etc etc all at no cost to you.

L&C wont get you an AIP, know nothing of the local market and haven't a clue about solicitors. Charcol are just as clueless. I personally think that a lot of information can get glossed over by trying to sort things out by phone only.

Look in the Yellow Pages or use Touch Local on the net to find a local broker. Phone a few, ask the question "are you whole of market, fees free" and take your pick. There are plenty of good guys out there who will go the extra mile for you.

regards
Leon

eslick

one thing to remember, getting a mortgage isnt rocket science, use all of the search engines out there, look at the comparison sites and have your figures ready. Brokers can be good but there are always better deals around, or so I have found, the brokers rates are normally a little more expensive. As a first time buyer you are in a good position especially with the deposit.

Look at the deals today you can still sign up to them and get the offers.

Also for your legal fees shop around, prices can vary by hundered of pounds.

Taken out 6 mortgages so far and used the internet for 5 of them, no issues at all, better deals than brokers on each occasion.

Leon_W

With all due respect eslick you have not been speaking to the right brokers.

Lenders WANT broker business and a lot are prepared to offer broker exclusives with lower val fees and arrangement fees. Last year I could offer deals with both Halifax and Abbey that were not even available through their branches which were considerably cheaper.

There are also many lenders who simply do not deal with the public direct and only offer their mortgages through brokers. Some of these are market leading.

"Look at the deals today you can still sign up to them and get the offers." Errr No you can't. The OP hasn't even found a house yet. Funds are only booked on submission of a full app.

Anyway, must dash

All the best
Leon

AndrewSmith

eslick wrote:

one thing to remember, getting a mortgage isnt rocket science, use all of the search engines out there, look at the comparison sites and have your figures ready.

Not rocket science? maybe not, but to some it is not easy at all. That is why you have to be qualified, experienced and government registered to advise on them.

Be careful though when using comparison sites as they are generally sponsered either by a lender or by someone who will gain from you taking a specific mortgage.

Moneysupermarket for example, good comparison however any personal details you enter into the site are sold as a lead to the highest bidding buyer.

Brokers can be good but there are always better deals around, or so I have found, the brokers rates are normally a little more expensive.

Totally incorrect. Lenders are encouraging broker business. It is actually more normal for a broker to have access to products that the lenders do not offer via the retail channels.

AndrewSmith

fimonkey wrote:

Hi All.

I'm new to the forums, but regularly read Martin's pages/updates etc.

My situation is that I'm due to inherit £30 -35K (in about 4 months time). I have £10K debt which I intend to pay off, then I want to use the remainder as a deposit on an expensive shed in Dorset (where I currently live).

1. Are there any step-by-step idiot guides you would recommend in terms of beginning the process, finding right mortgage, basically just 'how it all works' etc. - My problem is coming to terms with the language and terminology used (and my maths is rubbish too).

http://forums.moneysavingexpert.com/showthread.html?t=175653
http://forums.moneysavingexpert.com/showthread.html?t=209805

The above 2 threads are a good start.

I have read Martins Mortgage advise and I intend to use Charcoal online to find the right mortgage, then process it through London and County. Is that right? (or have I got things mixed up, i.e. L&C should find the mortgage and then I process it through Charcoal)?

Charcoalonline will charge you £195 fees for advice and only have access to 36 lenders. London & Country will only deal with you once you have found a property.

You should be looking to gain an agreement in principle prior to looking. This will enable you to confidently look at houses knowing that they are affordable and the mortgage do-able.

You should be looking for a detailed explanation of the different types of mortgage and the process as a whole.

When using a broker asways ask the individual what experience they have and how long they have been trnsacting UK mortgages. Just because they may work for a large firm that has been around a few years you may the the first case that individual has ever placed. As a consumer you have a right to know.

2. I've also recently read that you can have a mortgage deal set up, and you don't have to action it for 6 months. (damn wish I'd known this before interest rate rises today). Would it be a good plan for me to go and get the mortgage in principal now then? - Though this confuses me, surely you need to know how much yuo want to borrow before you can arrange a mortgage? I may want to borrow anything from 90K to 110K. What would I tell the mortgage ppl?

You can only secure the actual rate once you have found a property, however the lender will issue and agreement in principle prior to this subject to the information being correct.

3. What's the best chain of events, do you have to view the property first THEN get a mortgage THEN make an offer? Or should I get the mortgage (but see 2, above) THEN view property THEN make an offer?

Briefly:

AIP, View houses, offer, submit full mortgage application. Read the threads i link to above, they will explain properly to you.

4. What's the best way to find a solicitor to handle the conveyancing etc?

I always suggest getting 3 quotes.
Local firm
Internet Firm
Postal based Firm

It is however not always best to go for the cheapest as you will get the sevice that you pay for. If you want a swift, responsive conveyancer then you will expect to pay a little more than the 'cut price' firms that you may see.

Think about it, if you drive th price too low the conveyancer loses the incentive to progress the case for you especially when he has others to do that will earn him more in fees.

I have tonnes more questions, but I'll leave it here for now.

Many thanks in advance

Ask away, that's what we are here for.

Andy

eslick

appreciate the comments from the brokers but as I have said I have went to brokers (more than one) on each occasion and compared the data from comparision websites and banks own websites and in each case found that I can get a better deal.

My advise and I am not a broker would be to find out the best deals out there and compare them with those offered by brokers. If you save money going direct then do so if not use the broker but as I said I havent been able to find a better deal than going direct and in the end save money which is what we all want to do.

herbiesjp

eslick wrote:

appreciate the comments from the brokers but as I have said I have went to brokers (more than one) on each occasion and compared the data from comparision websites and banks own websites and in each case found that I can get a better deal.

My advise and I am not a broker would be to find out the best deals out there and compare them with those offered by brokers. If you save money going direct then do so if not use the broker but as I said I havent been able to find a better deal than going direct and in the end save money which is what we all want to do.

No doubt you can find many interest rates on the comparison sites.

However they do not tell you if you will be eligible for the deals - it may be that when the broker has sourced the deals for you, other reasons have led to them coming up with different results.

Have you gone back to them and shown them what you have come up with? Have they explained the difference?

HTH

eslick

herbiesjp to be honest I havent gone back to the brokers and asked them to explain the differences. I expect to be given the best deals when I spoke to them and didnt expect to need to talk to them again. My credit history is excellent, in a reasonably paid job so should be open to the best deals.

The sites mentioned above can give examples of the rates out there, they can also point you in the right direction of banks to check as can the finance websites such as moneyfacts.co.uk and their best buy tables.

Just incase it wasnt clear or looked like I was knocking brokers, getting a mortgage should be like any other purchase, dont go for the first one offered and shop around you never know you might find a better deal out there and it could be with a broker or it could be somewhere else.

herbiesjp

eslick wrote:

herbiesjp to be honest I havent gone back to the brokers and asked them to explain the differences. I expect to be given the best deals when I spoke to them and didnt expect to need to talk to them again. My credit history is excellent, in a reasonably paid job so should be open to the best deals.

The sites mentioned above can give examples of the rates out there, they can also point you in the right direction of banks to check as can the finance websites such as moneyfacts.co.uk and their best buy tables.

Just incase it wasnt clear or looked like I was knocking brokers, getting a mortgage should be like any other purchase, dont go for the first one offered and shop around you never know you might find a better deal out there and it could be with a broker or it could be somewhere else.

Didn't take it as a knock on brokers at all.:beer:

Simply stating the fact that the comparison websites do not hold as much information as the research systems that brokers have to pay for - a lot more detailed.;)

It could be that something you have said to the brokers, is picked up on the brokers system and not on the best buy tables/comparison web sites. Product type, age, mortgage type, LTV etc, outstanding debts, children etc etc.:eek:

Shopping around should always be done:T

By going back to the brokers, they may be able to explain why they have not come up with your deal - assuming that you have gone to whole of market mortgage advisers (and not tied advisers or advisers limited to a panel)

HTH

Ali120604

Speak to a mortgage advisor who has access to a full range of products, some are tied to one particular lender or a small bank of lenders who pay their fees. This advice will not take into account any other products which might be better for you. You can find the advisor in estate agents, banks etc. I's worth just chosing one to have a trial with - they will answer all your general questions, even if you don't use them in the end! It costs you nothing. My advice is to chose someone who has experience as 3 nice, non-home owning younger men recently gave me the wrong advice but luckily I knew better....

I would use the financial advisor to suggest how much you could borrow and then start looking for a property. Once you find the property, get the final advise and fill in the mortgage applicationbut you will have to move quickly as the mortgage company could take up to 1 week to give you an agreement in principle and the vendor might want confirmation that you can afford the property real quick.

Get a solicitor through recommendation - in my experience they are all slow and not really interested in the work except the last one I used. Sometimes estate agents recommend solicitors as the follow up cases all day long with solicitors so they should know the good from the bad. If the estate agent is linked to a conveyancy firm, eg Countrywide recommend their own solicitors, it's best to get a comparison quote to make sure you are not being ripped off.