Advice for first time buyer

Rachwass2010

Hey all.
I am saving to get a mortgage and I am sort of getting desperate to get one as we want to start a family (but want our own house first) we've saved a decent amount so far and know that in a fee months we will have a good amount and family will help us out a bit if needed. We want to get the 5% help to buy one as we are a young newly married couple who work full time but would no way be able to save for a 20% mortgage without having to wait years. We are paying £550 rent at the moment and it is frustrating that it could be going towards a mortgage! Anyway I'll stop going on my question is we would love to have the mortgage deposit ready to buy by October is it to soon to talk to a mortgage advisor and look at properties now? We have good credit ratings too just not quite enough deposit at the moment but think we will by October. Thanks

TravelBugHappy

If its a newbuild your looming at then definitely look now as you may be able to reserve a better plot before somebody else does. I'd say you could talk to an advisor now even if your buying an older house - too early to look at properties though

Rachwass2010

There is a new house I have my eye on. Can I reserve it without full mortgage deposit though?

Malmo

If buying new build, you pay a reservation fee to the builder to reserve a plot and you are normally expected to exchange contracts and hence pay your full deposit approximately 1 month after reservation.

Generally, if buying a used property or new build, what you need to get the process started is an AIP / DIP from a lender (either via a broker or directly from a lender, assuming you have researched their lending criteria to ensure you fit their basic profile). An AIP isn't a mortgage. The purpose of the AIP is to validate your creditworthiness and based on that, indicates your maximum borrowing power taking into account income and commitments, subject to further affordability and other criteria. They generally expire after 90 days but varies by lender.

An AIP is then turned into a full mortgage application when you have an offer accepted on a property you want to secure the loan against. Just get an AIP for the maximum amount the lender will allow based on your income/commitments. It doesn't mean you have to borrow that much later on.

If buying used, estate agents generally treat you as a serious buyer if you have the AIP in place when you view and then offer.

Never use estate agent mortgage services. Keep them at arms length when it comes to your mortgage and conveyancing matters.

Aswell as asking friends and family for broker recommendations and using Google, another method is to use the unbiased.co.uk directory. Suggested steps are posted here. Speak to 2 or 3 and get a feel for whether or not you could work with one of them.

Have a read of this MSE article which describes a simplified timeline and milestones of the buying process. It doesn't really factor in the complexities of a chain and the impact of that on the end to end process, but it is still useful as a guide.

Here is also a MSE guide that refers to the likely buying fees & costs to factor in and when they may be due.

As well as the above, I'd also urge you to take the time to thoroughly review your credit files/reports from all 3 Credit Reference Agencies (Experian, Equifax, Callcredit/Noddle) and give copies of these to your broker (if you use one).

I've read countless threads here where posters haven't reviewed their credit files and have been declined or delayed in their application further down the line because of historic credit issues or errors in their data.

Malmo

The HTB Mortgage Guarantee scheme that you are interested in is open to any buyer for any age property up to 600K. It doesn't necessarily have to be a new build, just in case you made that assumption (as many buyers do).