Mortgages for idiots

PoshGurung

Thanks guys, I'll rain-check visiting an estate agent and go on rightmove and start getting an idea of rough prices per area.

R_P_W

Again, are you asking how to find a mortgage or how to find a propery?! Two very different questions with two very different answers!

ACG

I would also say avoid estate agents.
Once they know what you can afford, you can be pretty sure the estate agent does... when it comes to haggling, the estate agent will know what you can go to and take advantage of it.

Either see an independent/whole of market broker away from an agents or do the research yourself would be my suggestion. Banks will give you a good rate possible but sell you their expensive protection products... what they give with one hand, they take away with the other.

PoshGurung

I'm trying to figure out an intelligent step-by-step process to finding property and then applying for a mortgage. I'm a total novice so I'm trying to break it down clearly.

I've just been on rightmove (is this the best all round property searcher?) and getting an idea of rough property prices.

Question to you, is it worth looking at sites that compare average prices per area? Then hone in on areas to find good deals?

If so which are the most reliable sites for charting up-to-date average prices? and should I also be watching how much prices are rising in every area?

Dan-Dan

but surely you need to understand the mortgage products on offer , and what you may qualify for BEFORE shopping for houses??

PoshGurung

In London I forgot to mention.

PoshGurung

Do I not need to know what I can afford in terms of property before I start looking at mortgage products?

Yorkie1

If you currently have no idea of what you can afford to borrow, then you are not going to be able to identify which houses you can afford.

First step should be to go onto a couple of lender's websites and input all your details into their mortgage calculators to get a very rough, ballpark, figure of what you might be lent if your credit report is OK.

Then, once you've got an idea of what you can afford to buy, start researching which area you might want to live in. Rightmove is a great place to look as you can filter properties according to postcode / price etc.

Best to find a mortgage broker before you view any properties, so that you can get a decision in principle / agreement in principle, which is a better way of knowing your maximum affordability.

They can also chat through the different types of mortgages with you in principle, and suggest which type might be best given your own profile. In the meantime, Martin's guide to mortgages gives you a decent overview:
http://www.moneysavingexpert.com/mortgages/mortgage-guide

Don't show the DIP / AIP to the estate agent, though, or they'll know your budget and try to push you up to it, even if the house isn't worth it.

Once you've found a property and had an offer accepted, go back to your broker who will put through the full mortgage application for you. You can do this direct, but as you need such a lot of information I think it may be best to use a broker to guide you this time round.

PoshGurung

Thanks Yorkie, that's very helpful!