Nearly in a position to buy a house...at last

mattbuk

Hi all,
Thankfully after renting for 7 years and saving for a house for the last 4 years. In a few months time I will have enough saved up for a 10% deposit.

As of yet I've not seen a mortgage advisor and I would like to know peoples opinions on this, if possible? Do people feel they are worth it, do they charge etc?

Also I started at the start of the new year after being in my previous employment for 12 years. My new job is within the same industry. Would this effect my chances of getting a mortgage?

Would you start looking before you get a mortgage acceptance amount?

One last thing, how much would recommend putting aside for legal fees, surveys etc? This would be for the north west region.

I just want to my sure I get all my ducks in line before I start looking etc.

Thank you for your time.

Yorkie1

You will need stamp duty if the cost is over £125K (@ 1%; @3% if over £250K), plus probably £800-£1K for solicitors fees, maybe £5-600 for survey, and whatever the mortgage application fee is.

Don't leave yourself without savings when you move in, as there are always unexpected expenses when you get a house...

If you're out of your probation period at work and it's a permanent position, I doubt the lender will be interested in the recent job change.

I used an independent, whole of market broker when I bought a few years ago as I didn't really know what I was doing as a FTB. I wouldn't use one again now as I am more confident.

Other preparation for mortgage application will include: being on the electoral roll, getting copies of all 3 credit agency reports (the £2 statutory ones, don't sign up for monthly deals with them), and ensuring you have all your payslips / bank statements / ID sorted and consistent.

Edit: As for getting an agreement in principle before you start looking, you could either do this, or simply go on a few lenders' websites and see what their affordability check comes back with to get a good idea.

If there are any blips on your credit record, I would definitely go to a broker first.

ACG

Every answer on an application has some sway on the overall score your given. Being in a job for 6-7 months isnt a major problem as you will meet the criteria of i would say at least 99% of lenders on that front (although i suspect probably all of them).

For solicitors, its difficult to say without knowing the purchase price however the solicitor we use (who is actually in liverpool) would charge around £670 plus stamp duty on top (only a ball park figure as the price can vary depending on the purchase price of the property and what searches are required).

For Brokers - as to whether you need one, probably not if your only issue is your employment. Whether you want one is a different question. I dont really see my job as finding you a deal - that doesnt really take that long when looking at the whole process.

The longest bit is ensuring you meet the lenders criteria, submittng the application, chasing the lender, solicitors and estate agents and ensuring everything goes through smoothly - basically taking the stress away from you. I tend to find estate agents apply undue pressure on the seller yet if/when i call them up on behalf of my clients they tend to back off.

But we do also find you the best deal possible, so this alone could potentially save you time and money.

Some do charge, some dont. It really depends on the broker, the work involved and the size of the mortgage.

I would also avoid getting an agreement in principle until you have found a property for 2 reasons:
1) It may expire by the time you find a property, meaning you then need another which is potentially another search on your file.
2) If you give an estate agent an AIP, it shows how much you can afford - this reduces your power when negotiating on price. The same goes if you see the estate agents broker, they know where their bread is buttered so will be speaking with the estate agents on what you can afford.

- Sorry for the essay.