First time buyer...in need of advice

Tom0

So, I have found the property I want, a 3 bed flat, on which I offered £175k and the vendor has accepted. I would really appreciate some advise on what to do next, apologies for the brain dump below.

Now, I have read so many articles on how to buy a house, but am still a little unsure of exactly what I need to do.

I'm 24 and have been in work for 2 years, my income is around £34k a year, and the online lenders say I can borrow up to £166k so I think I should be ok on this front. I have got a deposit together of £35k which gives me 80% LTV. (Borrowing £140k)

I understand that I need a mortgage and a solicitor, but unsure of which order I should be getting these in or if there is anything else I need?

If I plan to sub-let rooms of the flat should I mention this to the mortgage lender?

Having looked online it looks like nationwide will do mortgage/solicitor deal.

ww w.nationwide.co.uk/mortgages/interestrates-types/specialoffers.htm?offer=9#o9

If I did this, is there anything else I would need to pay other than 1% Stamp duty?

Would I be better off using a separate solicitor and then using a comparison site to choose the mortgage?

I would really appreciate any advise anyone can offer on this. I am very out of my depth and the more I read the less sure I am of what I need to do!

Tom

Fire_Fox

You should have already researched and chosen your mortgage product, got a mortgage in principle offer from your chosen lender!! :eek: I wouldn't bank on getting more than three times your salary, don't bother instructing a conveyancer until you have had this confirmed although the estate agent and vendor won't be happy if you don't give them your solicitor's details within a few days. You must tell the lender the truth, if they ask or wish to use this as income to get a larger mortgage you say you intend to get a lodger. If you lie or bend the truth you could be committing mortgage fraud.

You need to ask Nationwide and the conveyancer what else needs paying, they know what is included not us. Generally you will also need to pay for a survey or mortgage valuation. Nobody here can tell you what the better deal is, you have to do the maths for yourself based on the rates offered to you by the lenders. The more you want to borrow compared with your salary, the fewer products will be open to you. An independent mortgage broker is going to be the fastest at this point.

Have you also researched leasehold so you know what you are getting into? Do you know what the service charges are, length of the lease, any planned major works or sinking fund, any restrictive covenants on the lease? http://www.lease-advice.org/publications/

Tom0

Uh oh, sounds like I have a lot of phone calls to make tomorrow!

Thanks for your help, I wish I had posted here first!

picklepick

Try calling London and Country for help finding your mortgage.

CLAPTON

it would be unwise to say you will be subletting unless you are depending upon that income for 'affordability' of the mortgage (in which case they will probably refuse anyway)

Tom0

I'm certainly not depending upon the letting for affordability, more to help cover costs and live "rent free" as it were.

Will a mortgage company offer me a mortgage over the phone based on the info I tell them? I just need to get everything sorted enough to keep the estate agent happy in the next few days. Panic is well and truly setting in as I really don'y know how long these things take to sort out.

Then once I have their agreement, I then speak to a solicitor? I have seen ones that you can do entirely online which looked quite straightforward, so have asked them to ring me with a quote.

I will ring London and Country tomorrow.

Fire_Fox

Tom0 wrote: »

I'm certainly not depending upon the letting for affordability, more to help cover costs and live "rent free" as it were.

Will a mortgage company offer me a mortgage over the phone based on the info I tell them? I just need to get everything sorted enough to keep the estate agent happy in the next few days. Panic is well and truly setting in as I really don'y know how long these things take to sort out.

Then once I have their agreement, I then speak to a solicitor? I have seen ones that you can do entirely online which looked quite straightforward, so have asked them to ring me with a quote.

I will ring London and Country tomorrow.

Make an appointment with an independent mortgage broker, they will do almost everything for you/ with you. Get a conveyancer recommended to you by a work colleague, neighbour, friend or relative; leasehold can be a PITA and you need to trust and have a good relationship with your conveyancer. They are often not straightforward transactions, there is a lot of faffing about with the freeholder or management company.

PasturesNew

You can identify and instruct a solicitor, just be open/clear with them. "I want to appoint you as my solicitor, so I can give your details to the EA.... but I am just about to apply for a mortgage, so please don't do a THING on this purchase until I've come back to you to let you know a mortgage/company has been found by me".

Also, pick one that's inclusive and not charging by the hour. Some have a "no sale/no fee" price for sellers; you might be able to get this too as a buyer.

Tom0

Thanks guys.

To do list tomorrow:
Get the mortgage agreed in principle/sorted out
Find a solicitor but don't get them to do anything until mortgage is sorted
Pass details to EA.

I really don't want to spend money on something only to find I have bought the wrong thing or something They certainly don't make it easy!

Fire_Fox

Tom0 wrote: »

Thanks guys.

To do list tomorrow:
Get the mortgage agreed in principle/sorted out
Find a solicitor but don't get them to do anything until mortgage is sorted
Pass details to EA.

I really don't want to spend money on something only to find I have bought the wrong thing or something They certainly don't make it easy!

Who don't make it easy? Conveyancers are there to make sure you aren't scammed or misled, but you do have to take on some responsibility yourself for asking questions and getting surveys done. Part of the complexity is how many different people are involved - two private buyers, two lenders, one estate agent, two conveyancers, one surveyor, maybe a freeholder, maybe a mortgage broker .... :rotfl: Ring the estate agent and the solicitor once a week religiously to check on progress, do not let them fob you off by saying they will contact you. Although it will easily take a couple of months the longer things drag out the more likely the deal is to fall apart IMO.

If you read the LEASE website and run searches on here you will find out the main pitfalls after purchase, most times with leasehold it is people not researching beforehand (:o) and getting nasty shocks with service charges or major works. You having the extra income from letting rooms will help 'smooth things over' for you financially.

Tom0

One thing is that it is a new build, and several of apartments are already sold, with people having now moved in. Is it a dangerous game to assume that things can't be too bad if other people have already done all this work before in order to buy?