FTB Questions

scholesfan88

Hi folks

I'm currently in the process of house hunting as a FTB.

I had 2 properties in mind to get viewings booked in this week, both been on the market for approx 12 months. Both need some work doing hence not being sold which is what I thought I wanted, to get it for a decent price and then add my personal stamp on the place. A 3rd property has been added to the market this week which is the opposite, it appears very well presented and needs no work at all which has thrown a spanner in the works.

All properties are on the market for the same price, obviously the one that's just been added I dont expect to get anywhere near a reduction off the list price as the other two, though I'll still haggle should I like it and put an offer in.

I have an AIP from Habito which is all fine on affordability.

I have a few questions if anyone can help:

1 - If an offer is submitted and accepted by the vendor, I then go back to Habito to complete the mortgage application. When do I need to get a Lawyer/Conveyancer involved?

2 - Deposit. I have a 95% LTV, with the 5% deposit already in hand. However if I wanted to increase the deposit amount, would i need it in hand at the time of the morthage application?

3 - Deposit. Part of my deposit is from cash that I've had lying around the house (£2k). I'm terrible with cash and never carry it as I generally only carry card. This has built up over years as I've sold things or people have given me Birthday/Christmas money etc... Is this an issue under AML? The cash is now in my savings account with the rest of deposit money.

4 - Bank account cleansing. Prior to recently when Ive really started saving and sorting my spending out, I would spend probably 95% of my spare income on complete crap that I dont need. Weekends away, hobbies, clothes, gadgets. Will the lender look at this negatively when they see my bank statements or not pay much attention?

I'm sure theres more, but I'll save that for another day

Thanks!

Scholes

MrCH

1. We instructed a solicitor when our offer was accepted
2. The sellers estate agent might want to see proof of funds.
3. Don’t worry about it
4. Spending 95% of your income is a lot but where has your deposit came from if you have spent a lot of your income on junk?
Not really sure how the lenders look at this tbh.

Good luck

ACG

1) Solicitors are needed for the application, so you will need to know who you plan on using (and check they are on the lenders panel) prior to full application.
2) Some lenders want to see the full deposit at application stage, others will not. If you do not have the full amount, it may just limit your options a little.
3) As it is "only" £2k (not enough for money laundering) it should be ok, but we have noticed solicitors getting a little stricter over the last 6 months. It may be worth checking this with the solicitors prior to using them.
4) No, you will be fine.

(Good username by the way, he was my favourite player growing up).

scholesfan88

Thanks for the replies.

My deposit has come from what excess money I had in my current account, the cash I had saved in the house and what I've saved from my monthly salary last month and this month.

I've previously done some 'research' on local solicitors and found one that's quite near that had excellent reviews, they arent the cheapest but seem reasonable. I'll have to look if they're on the approved panel when I look to apply.

Exodi

To clear up the confusion around your remarks regarding the deposit and potentially increasing it;

a) you don't need to hand over your deposit until just before you exchange at the earliest.
b) you can formally increase your deposit however as your declare your contribution to your lender, you would need to apply for a new mortgage offer with the new deposit amount and provide this to your solicitor. Unless you're planning on dramatically increasing your deposit in the next month or two, the most practical way would just be holding on to any spare money until you're fully moved. If you still have spare cash after furnishing the house, most lenders let you overpay a good amount of the mortgage fee free.

scholesfan88

Thanks Exodi