First Time Buyer. Buying House I currently rent.

DerbyJay

Afternoon all,

My first post so be gentle!

My partner and I currently live in a rented property, and have a good relationship with the owner. This was her house and it's the first time she had ever rented it out. We asked if she would be interested in selling a few months back, and at that point she wasn't.

Recently she has agreed to sell the house and give us first refusal before advertising the property, this is great as we love the house and means we don't have to move.

We have agreed a price, which is £132,000 (valuation at £135,000). We have a deposit and are willing to put slightly over 10% at £14,000, giving us a LTV of 89.39%.

I understand that as we don't need to go through an estate agent, we simply need a lender and a solicitor.

I have gained costs from a solicitor at approx £1,187.90 for conveyancing which I think is reasonable given that the quote is from a reputable Firm.

I have researched and researched as much as possible in regards to mortgages and we have both been accepted for a DIP with Nationwide on the above amount.

My question is more about using a broker and seeking advice in the above situation, a broker wants an initial fee of £125 before they disclose the lender, and also 1% completion fee.

I have looked online and think I have found a good mortgage for our needs with Nationwide which is a fixed rate mortgage at 3.39% rising to 3.99% after 2 years, overall 4%, and fee's of £499. The monthly payment during the initial term is not much more than we are currently paying in rent, (I'm aware this can rise and fall with interest rates after the initial term on an SVR)

How important is seeking advice over using execution only for FTB's, in the above situation?

Nationwide one looks good to me if I'm honest but surely it can't be that simple.

Are we better getting a lower initial rate with a higher SVR if we don't have long term plans for the property even though the overall APR is higher, or for security sticking to one that may have a decent initial and SVR rate.

Any help would be much appreciated.

Thanks

J

amnblog

First time buyers will benefit from advice and guidance throughout the process from a broker.

1% broker fee is ahead of the bulk of the market. We can do a case such as yours with a flat fee close to half of that.