Help a First Time Buyer

jords555 · 22 January 2021 at 11:29AM

Hi There,

I have been researching becoming a first time buyer and still don't feel confident with the logistics of going forward to buy a property. There is not much in the areas I am looking into at the moment but i have seen two properties that take my fancy. I was hoping if I explain what I have someone can direct me to starting steps as i plan to view these homes.

I have two Isa's first of all one help to buy with Barclays, and another Life time Isa which can be used to buy a first time home with Moneybox. I have a 20 percent deposit for £100,000 Properties leaving me close to 7 for any extra costs, both properties look a very good standard with little work cosmetically to be done without a survey done. I don't know if I should be looking to get a mortgage in principal even if don't have a house I want to buy or i should wait before i am set on a property and ready to make an offer.
Should i be looking for solicitors and conveyancers before making an offer etc. All the tip pages don't seem to spell it out and i think for my confidence I need it spelled out as I have the money in place and just looking for guidance to pursue.

I'm also frightened off by terms like Gazumping as the properties I like are a little over budget but i know the areas and they are asking slightly over what the properties are worth so would've made a lower offer for what the estate agents are asking. Should I be getting insurance as a deterrent for this possibility when it comes to it?

Thanks in advance to anyone offering advice.

jonners666 · 22 January 2021 at 11:54AM

Yes, you want to get an AIP in place before you start viewing, especially at the moment. Many EAs won't let you view without one during the pandemic.

You can get quotes from solicitors and then set the ball rolling when you find somewhere. The first question they will ask is the address you are buying. Don't go with the estate agent suggested solicitor, or the cheapest.

Try not to worry about gazumping - if it happens then it happens.

grumiofoundation · 22 January 2021 at 12:24PM

jords555 said:

Hi There,

I have been researching becoming a first time buyer and still don't feel confident with the logistics of going forward to buy a property. There is not much in the areas I am looking into at the moment but i have seen two properties that take my fancy. I was hoping if I explain what I have someone can direct me to starting steps as i plan to view these homes.

I have two Isa's first of all one help to buy with Barclays, and another Life time Isa which can be used to buy a first time home with Moneybox. I have a 20 percent deposit for £100,000 Properties leaving me close to 7 for any extra costs, both properties look a very good standard with little work cosmetically to be done without a survey done. I don't know if I should be looking to get a mortgage in principal even if don't have a house I want to buy or i should wait before i am set on a property and ready to make an offer.
Should i be looking for solicitors and conveyancers before making an offer etc. All the tip pages don't seem to spell it out and i think for my confidence I need it spelled out as I have the money in place and just looking for guidance to pursue.

I'm also frightened off by terms like Gazumping as the properties I like are a little over budget but i know the areas and they are asking slightly over what the properties are worth so would've made a lower offer for what the estate agents are asking. Should I be getting insurance as a deterrent for this possibility when it comes to it?

Thanks in advance to anyone offering advice.

You can only use the bonus from one of the HTB ISA or lifetime ISA to buy a property. Lifetime ISA has to be open for 12 months before you can make a penalty free withdrawal. (You can withdraw the money in HTB ISA to use alongside LISA money but just won't get HTB bonus).

Depending on when/where you are looking aiming to buy post-April might be good (good chance wouldn't complete by then anyway even if offer accepted today) and this gives you a chance to get another £4000 into LISA (I am assuming you have maxed contribution in this tax year). Stamp duty (or LTT, LBTT is Wales.Scotland) wont impact you based on property price you suggest above.

If you are worried about losing costs up front you can minimise your upfront spend.

- Don't pay for survey until mortgage confirmed (in post you imply might not get survey - are you confident of not getting a survey? Will you be able to stop all issues a surveyor would?).
- Don't pay mortgage fees up front (either add to mortgage or choose fee free deals).
- Get a no completion no fee solicitor (would still pay for costs e.g. searches).

You can get home buyers insurance (see link) but you will see it will not pay out in all circumstances, and will only cover certain costs up to a given limit. You may decide (we did) that the cost of insurance is not worth it based on how much you would actually get back if you were eligible for a pay out.
https://hoa.org.uk/advice/guides-for-homeowners/i-am-buying/homebuyer-protection-insurance/

Get mortgage in principle before going to view (estate agents may ask for this before allowing viewings anyway). You don't need to get MIP from the lender you will use.

Don't need a solicitor to view or make offer.
You should instruct a solicitor that is on your lenders panel. If you use a large firm chances are they will be on the major lenders panels but always check first (with lender and/or solicitor). So if you know the lender(s) you will use then can instruct once made an offer if solicitors on the panels of lender(s) you will use.

https://www.quittance.co.uk/conveyancing/advice/general-property/why-you-need-to-check-your-lawyers-lender-panel-membership

Edit: As posted below assumed (hopefully not in error) this was not Scotland...