First Time Buyer

qwerty_12345

Hi,

I was wondering if someone could give me a little bit of advice...

My partner and I are looking at buying our first home, however we dont have much savings and before we start the ball rolling we were wondering what type of money we need to have together as we have no clue at the moment .

We are looking at buying a house in the region of £80,000 - £90,000 so we understand that we will have to come up with a deposit of 5%. We have a joint income of £30,000 with one loan between us at £223 pm and I am due a pretty good pay rise in June, so we can't see the amount of mortgage being much of a problem. However, we have no clue how much the other bits cost (eg legal fees, surveys, etc). I was hoping if someone could shed some light on it for us, so we know what were looking at before we go any further?

I'm really sorry if this information is posted elsewhere on the forums.

Thanks in advance

andrewbrydon

Thats the best advice I can give

Most should go through this with you in an initial free consultation

Andy

helping_hubby

I think all the fees and surveys vary on the value of the house and location.

You could phone up some solictors for conveyancing quotes to get an idea...

And again you could just phone up to get some survey quotes.

The mortgage company will probably want you to pay for a valuation...if you look on websites these fees are usually somewhere in the small print.

Depending on the type of mortgage you may also have to pay an upfront fee, although this can be added to the mortgage.

Then I guess other things to think about might be if you need to pay for a removal van, furniture, and white goods.

Mr_helpful

The best advice is to contact an independent broker like me there are brokers who will give advice and help arrange you mortgage without charging you a fee

qwerty_12345

Thanks for your advice.

Mr helpful - is there anyone that you could recommend in the Merseyside area?

absolutebounder

Mortgage mamma is not that far away from you. send her a pm *
I used her once she was very good

homer_j_3

qwerty_12345 wrote: »

Hi,
However, we have no clue how much the other bits cost (eg legal fees, surveys, etc). I was hoping if someone could shed some light on it for us, so we know what were looking at before we go any further?

I'm really sorry if this information is posted elsewhere on the forums.

Thanks in advance

Here are some general ideas that may help you get started:

Legal Fees for buying should be around the £700 mark for the purchase price that you are looking at. You may get it cheaper if you shop but with things like this recommendations are key as a good solicitor will be worth the weight in gold.

Surveys - there are 3 types and which one you want or need is probably dependant on the property itself - can you get away with a basic or do you need someting more in depth. I would budget 600 here for the homebuyers which is the middle one of the three.

You will have possibly an arrangement fee with the mortgage lender and this again will be dependent on your requirements. You can pay thousands to get a low rate or pay none at all to get a slightly less competitive ones. You can add arrangement fees to the loan if required but I would always try and get my clients to pay if possible. If you work on £800 here then this should be top end.

These figures are only rough figures but hopefully it will give you an idea.

cushde

Hello there

In a similar boat, also wanting to borrow around te 90k mark. So far we have put an offer in for one house. The lender sent there own survey people out at a cost of £250 to me. The report came back with some issues and a hold on some of the mortgage offer. The seller was not reducing for us, so we moved on.

Got an offer today of £650 For all the legal stuff, from one of our local Solicitors. Which i think is not too bad, as some have quoted 1.2k+!

Seen another house we liked. Mortgage company again sending there people tomorrow, cost me just £125 this time for the survey as they "want to keep our buisness" as my mortgage advisor said. Will also need to pay my broker a £495 fee on completion. So so far without moving into a house i have spent 1520!

I would say put away AT LEAST 2k for everything, minus furniture and the rest.

Best of luck.

Mr_helpful

Cushde
Lesson for the future. Probably cant do anything about it now but have a look at your KFI (mortgage Quote) and see how much the adviser is being paid in addition to your £495 fee. There are plenty of advisers who are independent and happy not to charge you a broker fee.
Qwerty
Yes I agree with Absolute Bounder Mortgage Mamma should be near enough to look after you.

zag2me

Why are you paying a broker for information that you could get yourself by browsing the internet

It can be a good idea sometimes, but you don't have to pay anyone if you dont want to. All the big banks have websites and calculators.

cushde

My circumstances of getting a mortgage are quite adverse. I had been too a couple of "fee free" advisors, but without the documentation i was unable to get a mortgage. Also the broker takes care of all of the admin work and other stuff. To be honest i would of paid double for there help.