First time buyer questions

FirstHomeQuestions

Hi everyone first of all I’m new to this forum so sorry if I’m posting in the wrong place or asking what some may think silly/obvious questions.
I am a first time buyer with my partner, saw a house viewed it twice and fell in love, put an offer in which was accepted the second time around,, i was approved for a sole mortgage application with a 10% deposit of the asking price. It has all been pretty smooth sailing upto now (touch wood) and at my last bank meeting it all went to offer (im to understand it is all in the hands of solicitors now and all i can do is wait)

All i was wondering was once its went to offer and searchs are being carried out how long would i expect to wait before it all being completed?
And what can ‘go wrong’ at this point as i always hear people saying the mortgage ‘fell through’ but i dont know what this means?

Also i have been told by the bank i need home and contents insurance before completion and have been given a quote from my bank - Lloyds - of £40 a month. Does this sound a good price? As i have looked online and got comparison quotes for cheaper however im the type of person who prefers someone to explain to me exactly what im signing up for incase im not fully covered for everything i need.

Sorry if im waffling on just im a ftb with no one to ask these questions of.

walwyn1978

£40 a month for home and contents is a lot but it depends on your postcode etc. I'd shop around some - we pay way, way less than that and we have high limits on claims, cover high value named items on policy etc etc but that is Yorkshire, obviously if you're buying in say Edmonton North London your price wlll be higher, but you should be able to get quite a bit off that.

A mortgage can 'fall through' if your situation changes, if the house is valued at a lower price than you have agreed and you can't make up the difference, or if the house has unusual build characteristics that some mortgage lenders don't like and won't touch - you probably won't know that until after the searches and mortgage survey is done.

Good luck with it!

Linton

FirstHomeQuestions wrote: »

Hi everyone first of all I!!!8217;m new to this forum so sorry if I!!!8217;m posting in the wrong place or asking what some may think silly/obvious questions.
I am a first time buyer with my partner, saw a house viewed it twice and fell in love, put an offer in which was accepted the second time around,, i was approved for a sole mortgage application with a 10% deposit of the asking price. It has all been pretty smooth sailing upto now (touch wood) and at my last bank meeting it all went to offer (im to understand it is all in the hands of solicitors now and all i can do is wait)

All i was wondering was once its went to offer and searchs are being carried out how long would i expect to wait before it all being completed?
And what can !!!8216;go wrong!!!8217; at this point as i always hear people saying the mortgage !!!8216;fell through!!!8217; but i dont know what this means?

Many things can go wrong. A common one is that there are problems with the chain. Perhaps the people who are selling you their house have a problem with the house they are buying, or the people selling a house to the people who are selling their house to you etc etc. Do you know how long the chain is? Eventually there must be someone who is selling but not buying. The slowest person in the chain will determine how long it takes to complete.

The other thing which can go wrong is that the survey finds something unpleasant or perhaps the surveyor values the house at less than you agreed which leads the mortgage company to reduce their offer.

Have you had the survey done yet?

Also i have been told by the bank i need home and contents insurance before completion and have been given a quote from my bank - Lloyds - of £40 a month. Does this sound a good price? As i have looked online and got comparison quotes for cheaper however im the type of person who prefers someone to explain to me exactly what im signing up for incase im not fully covered for everything i need.

It sounds expensive to me but it will depend on the house and the area. You should get more than one quote. Perhaps you could go to a local insurance broker who will explain things to you and will find the best insurance company for your particular needs. Its not a great problem - house insurance is very standardised unless you want something special. The buildings insurance must be in place immediately contracts are exchanged.

JoJo1978

Have a read of the Waiting to Exchange thread where many people give their timelines which will give you an idea. You can also get moral support there from others in the same position. I've only recently stopped reading it and I moved 3 months ago now!

£40 per month does sound high for insurance, even for London. Maybe try one of the aggregator sites to compare multiple quotes. There's one advertised by a furry animal - if you buy through them you can get 2for1 cinema tickets on Tue/Weds for a year.

Good luck!

FirstHomeQuestions

Thanks everyone for replies still trying to get the hang of this forum so will have a nosey around

The house we are buying is being sold by a landlord who is currently renting out the property.

I live in Sunderland so will shop around for insurance quotes, like i say i did get quotes alot cheaper online i just get a little overwhelmed with all the information online as opposed to speaking to someone in person but i will have a read into it and make sure i cover what i need.

It is a free hold property
Yes we have had the survey come back and a few issues were raised however it was things we were looking into repairing/ updating ourselves anyway, and it was valued at the exact price we bought it for

Thanks again everyone.

FirstHomeQuestions

Hopefully not we spoke to the guy when we went to view the house and he is moving in with his partner into her home so hoping this isnt an issue