First Time Buyer Help

stevepil

Hi All
New to this forum but really need some advice over a mortgage as first time buyer so bit confused over it all.

1. I have been offered a mortgage which has a fixed rate for 3 years but then goes up quite a bit at end of this, I am told you just remortgage and find another lender who offers another introductory initial rate, is this true?

2. Also, my lender says there are early payment fees, they are 3.5% of the loan which is clearly a lot, do they only come in for the initial rate for 3 years, or would I have to pay this fee every time I remortgage?

I intend on mortgaging and then only remortgaging when the initial rate ends to keep our rates low.

We are looking at a house of £260,000 which over 25 years is costing us around £1100 per month which is a lot, we cant therefore justify going to a higher rate.

3. What other things do I need with a new house - building insurance, boiler insurance etc?

4. I have heard about insurance for sickness/redundancy etc, is this something I should take?

Thanks very much for any help, we are a little lost, if there is anything else you think we should consider as a first time buyer I would really appreciate it being mentioned.

Thank you

MovingForwards

1. Look to see what rates the lender can offer you or remortgage.

2. ERCs will be payable during the initial fixed term, not the whole term. Same with any remortgage.

3. Building and contents insurance, possibly boiler cover but a lot of people do an annual service and pay as anything needs doing. Some people have appliance insurance, most people repair / replace as necessary.

4. Personal preference, speak with a good broker to see what costs are and what cover.

Loads to consider, read through various threads and get to know what you are facing as a homeowner.

stevepil

Thank you very much, most useful - it seems so stressful with so much to consider

MovingForwards wrote: »

1. Look to see what rates the lender can offer you or remortgage.

2. ERCs will be payable during the initial fixed term, not the whole term. Same with any remortgage.

3. Building and contents insurance, possibly boiler cover but a lot of people do an annual service and pay as anything needs doing. Some people have appliance insurance, most people repair / replace as necessary.

4. Personal preference, speak with a good broker to see what costs are and what cover.

Loads to consider, read through various threads and get to know what you are facing as a homeowner.

cattie

3. What other things do I need with a new house - building insurance, boiler insurance etc?

Yes, building & contents insurance, boiler not essential, I put money away to cover any boiler issues that may occur as I find the central heating cover offered too expensive. So far in 7 yrs all I've had to pay is for annual service, around £75-£100

4. I have heard about insurance for sickness/redundancy etc, is this something I should take?
If you can afford it I strongly advise it only you never know what is around the corner. As I was buying alone I decided it was wise to take this insurance out & how glad I am that I did; a couple of years later I became quite ill & unable to work & the insurance was a Godsend, allowing me to keep my mortgage payments up to date.

Thanks very much for any help, we are a little lost, if there is anything else you think we should consider as a first time buyer I would really appreciate it being mentioned.

Thank you[/QUOTE]

DCFC79

A broker could beat the rate offered, have you spoken to 1 ?

stevepil

No, I have not spoke to any broker? not sure how to go about that? I just went to my bank but good to know you think I could get better terms
will google it...

Thrugelmir

Remortgaging to a different lender can be a costly exercise. Resulting in little to no saving in switching lenders when a fixed term product ends.

While interest rates are low at the current time. They might not remain so for the entire mortgage term.