First Time Buyer - Complete Novice

MikeUK83

Having just saved up a deposit I'm now starting to look into buying my first home with my wife. I've never done anything like this before and I am completely naive about what to do.

Do I look for the home first and then start looking for a mortgage that'll cover the cost, or do I sort the mortgage out first so that I know how much I can afford to pay when looking for a home? Is it best to go through an independent mortgage broker or to do it through my personal bank? Are there any mortgages out there for a first time buyer with a 10% deposit to look into?

Like I say, pretty clueless to all of this. If anyone can recommend anything I could read through that isn't just a jargon catalogue I'd be so grateful!

stator

You can apply for a mortgage agreement in principle.If you want to use the Help To Buy scheme there aren't that many lenders, you can check all of their mortgage rates online.

Plenty of people will tell you to use an independent mortgage broker, but if your case is simple I wouldn't see the need. Certainly don't bother with the mortgage advisor at your local bank, they won't give you independent advice. Only go to your branch if you've already decided on the mortgage.

Once you've got the AIP you can start making offers on houses and people might take you seriously.

Start looking for a local conveyencer about now, you can get quotes from them but check local reviews. You might do the same for a surveyor.

Thrugelmir

MikeUK83 wrote: »

Like I say, pretty clueless to all of this. If anyone can recommend anything I could read through that isn't just a jargon catalogue I'd be so grateful!

On this site.

http://www.moneysavingexpert.com/mortgages/?_ga=1.103287685.486467388.1397582978

amnblog

As you admit you are 'I am completely naive about what to do' - don't go approaching any lenders direct - nor dealing with 'advisers' in the estate agency offices.


Get yourself an independent mortgage broker to help you. They can guide you through the process step by step.


You should expect to considering your mortgage options, deposit, and budget, before you start property hunting.


A good way to find a good broker is to ask friends and family for a recommendation to someone (who does NOT work in an estate agency office).

exoteric

amnblog wrote: »

As you admit you are 'I am completely naive about what to do' - don't go approaching any lenders direct - nor dealing with 'advisers' in the estate agency offices.


Get yourself an independent mortgage broker to help you. They can guide you through the process step by step.


You should expect to considering your mortgage options, deposit, and budget, before you start property hunting.


A good way to find a good broker is to ask friends and family for a recommendation to someone (who does NOT work in an estate agency office).

OP, I'd agree with all of the above. I'd particularly recommend getting a broker if you don't have a clue about what you're doing, as they're the specialists and have done all of this hundreds of times before. It's effectively like getting a Will prepared by a solicitor instead of using one of those DIY packs from WH Smiths!

I'd also add that you should be wary of estate agents because whilst they might seem friendly and helpful, they work for the sellers (not for you) and they live off commission. So if you let them know what your actual budget is they may try to get you to offer as close to that as possible - more money for the seller (which makes them look good) and more money for them in commission. Personally, I always gave them a vague figure for my budget and ended up buying somewhere for a good deal less. Good luck.

jacobtheamish

Whether your needs are simple or complex, just speaking to a broker should not cost you anything and I would advise doing this even if you think you know which product you want. Researching rates online on an evening whilst watching TV is not comparable to speaking to a whole of market broker who's qualified and knowledgeable of the market. As an example. Woolwich/Barclays like many lenders offer the same rates through brokers as they do in branch. You will typically be able to see a broker far quicker and benefit from his/her advice without requiring you to sit through 3+ hours meetings with inhouse advisers.

pinkteapot

The process is:

1. Get an agreement in principle to find out how much you can borrow.
2. Find a house.
3. Complete the full mortgage application (for which you need the address of the house you're buying).

Agree with the comments above re brokers, but I say it doesn't hurt to research rates yourself so you know if the broker has found you a good deal or not.

Lenders worth checking out yourself are HSBC and First Direct as they typically have good rates but don't offer their products to brokers. However, they have probably the strictest lending criteria, so don't bother unless you're a model case (both been in permanent jobs for more than six months, no previous credit problems whatsoever, no major personal debt, pretty comfortable monthly budget).

I've had three mortgages. Two with HSBC which I applied for myself and found the process very straightforward. The third was with Santander which we got via a broker as I was in a contract job at the time which limited the lenders who would consider us.