Help to Buy - IFA or specific FA for advice?

buel

Retired_Mortgage_Adviser wrote: »

Wife's maternity leave - not an issue as long as you can get a letter from the employer confirming return to work date and salary

Your job change - a brand new job (on probation) might eliminate a few lenders, but again not an issue. You mention a contract, is it an FTC or a permanent one?

17k debt - will reduce affordability but with 62k income and the house price you're looking at, it shouldn't be a problem.

Given the maternity, your broker will ask you for an estimate for childcare costs to factor in the affordability, or alternate arrangements (grandparents, etc). If you have to pay for childcare, it may impact the affordability significantly. When making an estimate all it needs to be is reasonable.

Based on the very limited information in the thread, it appears to be a fairly straightforward case and you could well use one of the fee-free brokers recommended on the MSE page here.

Other fees - solicitors (around £1000-1500), mortgage product fee (if applicable, can be added to the loan), moving costs, etc.

Thank you again so much!!!
Please can I ask - we are seriously looking at putting down a reservation fee, what sort of things would you suggest I look out for - hidden fees, etc, or questions we should ask?

buel

Also, my wife just read the following in the paperwork from the home builder, ‘Shingler Homes’;

Full reservations
The properties can be reserved by filling out a reservation form, and we request £1,000 which is a non-refundable deposit on the property, but this is deducted from the purchase price. By reserving you are confirming that you are in a position to proceed legally and will exchange in 4-6 weeks with a deferred completion date to suit the build schedule, which we will discuss with you prior to exchange. This will ensure that we can undertake your request for choices such as kitchen units and tiles, in order to create your perfect home.

Please can I ask if they are saying that they could require full exchange within 4-6 weeks of us paying the £1,000?

kingstreet

Yes to timescale.

But the max res fee on HTB is £500, not £1,000.

buel

kingstreet wrote: »

Yes to timescale.

But the max res fee on HTB is £500, not £1,000.

Thank you again.

One more question, if I may - our broker got back to us with this;
‘a 5 year fixed rate mortgage of £176,250 (75% LTV based on a purchase price of £235,000) with a term of 26 years, your repayments would be in the region of £728 per month with £500 cash back upon completion and free valuation’.

To be honest with you, £728 is too rich for us. The reason he used 26 years is because I’m 43 so cut off is 70 for most banks, I believe?

My question is - would the interest rate but substantially lower on a 2 year rather than a 5 year? He used a 5 year as an example but didn’t quote the interest rate.

kingstreet

Dunno off the top of my head. Typically rates are between 1.5% and 2.0% for two year and five year fixed rates. Lower rates can be obtained where there is a product fee payable.

Ask your broker for illustrations.

There are lenders who will lend past 70.

buel

Update; the developer has told us they do not yet have the specifics of the maintenance fees but sent us a PDF of a similar agreement on one of their other developments.
Essentially it states that if there is ‘a dispute between the company and the owner as to the amount or proportion of the service charge, such dispute shall be referred to the surveyor who shall act as an expert and not as an arbitrator and whose decision shall be final and binding on the parties PROVIDING ALWAYS that the owner shall not withhold payment of the service charge where there is a dispute and such dispute shall only be referred as above after payment by the owner of the sums due in accordance with the schedule’.

Doesn’t sound too good, does it?

buel

Quick question - I’m thinking about applying for a loan to fill a gap until a compensation claim comes through in two - three months which will pay that back. My salary has also increased.
My question is how detrimental would an application for credit now be on a mortgage application in two months time?

horseymchorseface

any debt affects affordability and taking on more debt will reduce what you can borrow no matter future compensation amounts as lenders can only go on the now

buel

Thanks but due to a return of an expensive item that is faulty, the debt will stay the same. It’s the application for credit that I’m concerned of?