FTB timeline

SarahB89

I'm just starting the process of buying a first home with my fianc!. We have a deposit of £25k in the bank, awaiting a further £2.5k in LISA bonuses which are due in the next 3-6 weeks.

We have viewings booked this weekend, some of which are at the top of our budget/a tiny bit over. I'm trying to bear in mind that we need to keep some money for the solicitors, surveys, etc, but also that the price the vendor is advertising is not necessarily what we'll end up buying for.

Am I correct in saying that we need the full deposit available at the time of exchange? How long is this likely to be after we offer? If we made an offer next week, knowing the deposit isn't ready til likely June, is this ok so long as we're up front with the vendors about this?

Cakeguts

What have you done about finding out how much you can borrow?

SarahB89

We have a decision in principle from our broker for up to £330k.

hazyjo

Don't tell the vendors. Will make them very nervous and, in their shoes, I'd not particularly want to risk it.

ThePants999

Agree with hazyjo. You'll have the money long before you need it, so why scare people by drawing attention to not having it right now?

G_M

There are whole books about the buying process (free from your local library!)

Given this is the biggest, most expensive, life-changing decision of your life, it's well worth making sure you understand the process, the time-lines, the potential pitfalls, the decisions yo'll need to make (and when) etc etc.

Educate yourself. eg


https://www.amazon.co.uk/First-Time-Buyers-Survival-Guide-Buying/dp/1717051804/ref=sr_1_2?crid=P2BJ4DVJPH4W&keywords=first+time+buyer&qid=1556755711&s=books&sprefix=first+time+buyer%2Cdigital-text%2C279&sr=1-2



https://www.amazon.co.uk/Things-Know-Before-Buying-Home-ebook/dp/B00ES07MBI

gellitripping

We had a very similar deposit to you, but in addition to the deposit we probably spent about £3000 in mortgage fees, solicitors fees, moving costs etc. I was very lucky to have a bonus which I received during the process which paid for this but you might want to take it in to account when considering your timeline. It was a lot more than I expected!

[Deleted User]

I wouldn't bother telling them. Its unlikely you'll be exchanging within 6 weeks anyway, so by the time comes you'll have the money.

Don't forget about money for essential appliances or furniture. When we bought our first home we had no washing machine, fridge or cooker so had to budget for those in addition to all the solicitors fees etc.

Also, Stamp Duty!

M2808

You don't need the money till exchange which is minimum 6 weeks but often longer and you can push it a little bit if you need just by hanging on to paper work for a few days.

When I did mine the EA wanted proof of funds when I put the offer in, which wasn't quite enough at that point but would have been by exchange. All I did was download a letter template for a gifted deposit and got my mum to sign to say that she would be willing to gift the remaining deposit amount. The EA accepted that, then put it SSTC and I didn't do a gifted deposit (I never intended to) as I had the money in time. I was completely honest with the bank and said I don't have the full deposit right now but I will at my next two pays, which will both be before exchange. They were fine with that.