Need Advise: First Time Buyer - a total newbie, confused and wanting to buy a property

AdrianC

Bucki said:

We really love the house, is ideal for us, near parents, near school, near main road, near town.

Overall, it is great property and yes I admit, my salary is not best compared to many of you here.

Sorry, but you need to stop stressing over the unrealistic.

You cannot currently afford a £240k house on your income and with your current equity, even with the £30k from your parents.

You can afford the £190k one, probably.

Can my friend who owns a business help me to "gift" money e.g. surely he will lend it to me but that be between me and him and state as a gift.

You realise you're suggesting lying to your solicitor and mortgage lender...?

Some said "solicitors fees, building surveys for vendor and buyer".

Can you please explain what additional fees am I missing?

All the costs of buying.
Your solicitors fees.
Your survey cost.
The searches.
The removals cost.
Furniture. Insurance. Any work you want to do to the place.

And you've got a kid on the way... They're expensive enough as it is.

hippocrates1

Bucki said:

Redwino222 said:

Affordability is a huge issue.  I am around the same age as you, with a similar mortgage but I earn over double what you do.

I am not rich by any means and still need to be careful. 

Your living costs will increase with the baby.

Can you start looking at Cheaper houses?

Are you also married and have 1 child?

Does your wife work... do you get child benefit?

How come you are struggling with double of my income?

Can you break down your expense for examle in my case:

	Per Month
GYM	£           15.99
Mobile	£              5.79
Car Ins.	£           34.32
MOT	£              2.50
Road Tax	£           15.00
Petrol	£           50.00
TV	£           13.00
Internet	£           35.00
Life Insurance	£           30.00
Content Insurance	£           30.00
Clothes	£                  -
Leasure	£                  -
Total	£         231.60

Doesn’t matter what your personal opinion is of whether you can afford it. The bank has had rules and you can’t reason with them. 

steve866

Do you know how many hours your wife is likely to be working and what the salary will be?  It might be worth waiting until she’s been employed for a few months then you should be able to borrow a lot more.

Have your parents got any concerns what the anti money laundering checks could uncover in relation to their property sale? Why did they keep it in cash?

Bucki

steve866 said:

Do you know how many hours your wife is likely to be working and what the salary will be?  It might be worth waiting until she’s been employed for a few months then you should be able to borrow a lot more.

Have your parents got any concerns what the anti money laundering checks could uncover in relation to their property sale? Why did they keep it in cash?

My parent's sold a property a home abroad which was not declared.

What would solicitor uncover in this case for example?

Everybody is 'shouting' that I cannot afford it anyway.

Well, I believe I could manage it well because I would get a second job for sure.

The problem is getting bank to borrow the money.

I am also confused to why the Surveyor is needed to be paid once the house is paid?

Is the surveyor not needed to be done before purchase to verify if repair needed or value property?

MaryNB

You'll be looking something in the region of £1.5k for solicitors fees (including searches).
£200 approx for your lenders to do a valuation of the property
£400 approx for a homebuyers survey (not mandatory but recommended for such a large purchase).
There are mortgage fees but they can be added to the mortgage.
Bear in mind if the sale falls through at the last minute you may lose this money.

You just have to let this £240k property go, you're not even close to affordability. Finding a friend with £50k to give you isn't going to be easy. Saying it's a gift when it's actually a loan is mortgage fraud. Also a lot of lenders dont allow gifts from friends. 

If the £190k house functions for you and your family well that will just have to do. A spacious kitchen and garden are "nice to haves". I know it's frustrating but where I live £190k might get you a tiny studio flat at best, nothing more. If you can get a house that functions for your family be content with that. You can always upsize a few years down the line if your circumstances improve. I wouldn't go for the £130k fixer upper since you've got a baby on the way. 

If you transfer your parents money from an EU account keep a clear record of the transactions for your solicitor. Don't automatically use your bank to do the transfers, they can be more expensive than something like TransferWise for example (there are plenty of money transfer companies around).

davidmcn

Bucki said:

steve866 said:

Do you know how many hours your wife is likely to be working and what the salary will be?  It might be worth waiting until she’s been employed for a few months then you should be able to borrow a lot more.

Have your parents got any concerns what the anti money laundering checks could uncover in relation to their property sale? Why did they keep it in cash?

My parent's sold a property a home abroad which was not declared.

What do you mean by "not declared"?

Sunsaru

Bucki said:

steve866 said:

Do you know how many hours your wife is likely to be working and what the salary will be?  It might be worth waiting until she’s been employed for a few months then you should be able to borrow a lot more.

Have your parents got any concerns what the anti money laundering checks could uncover in relation to their property sale? Why did they keep it in cash?

1) My parent's sold a property a home abroad which was not declared.

What would solicitor uncover in this case for example?

2) Everybody is 'shouting' that I cannot afford it anyway.

Well, I believe I could manage it well because I would get a second job for sure.

The problem is getting bank to borrow the money.

I am also confused to why the Surveyor is needed to be paid once the house is paid?

3) Is the surveyor not needed to be done before purchase to verify if repair needed or value property?

1) The solicitor just needs to know that the money is legit. Whether it has been declared or not is not his/her problem.

2) As others have said, just because you think you can afford it doesn't mean the banks will. You do not stand a chance of getting the £240k with your current salary with your current circumstances. You may be able to once have the second job for 3 to 6 months.

3) That is correct. You pay the surveyor to do the survey before you buy the house.

Gook Luck

MaryNB

Bucki said:

steve866 said:

Do you know how many hours your wife is likely to be working and what the salary will be?  It might be worth waiting until she’s been employed for a few months then you should be able to borrow a lot more.

Have your parents got any concerns what the anti money laundering checks could uncover in relation to their property sale? Why did they keep it in cash?

My parent's sold a property a home abroad which was not declared.

What would solicitor uncover in this case for example?

Everybody is 'shouting' that I cannot afford it anyway.

Well, I believe I could manage it well because I would get a second job for sure.

The problem is getting bank to borrow the money.

I am also confused to why the Surveyor is needed to be paid once the house is paid?

Is the surveyor not needed to be done before purchase to verify if repair needed or value property?

 I would expect your solicitor to ask for proof of sale of the house. My parent gifted me money from and EU country and had to provide payslips and proof of lump sum payouts from former employers. I also had to provide a few months worth of bank statements showing that my savings were as a result of my regular income.

Your lender will have a surveyor do a valuation of the property before you get an offer. This may be a desktop valuation - online research of the house and the local market, or a physical one where they visit the property. They're giving you money to buy a house. For example, they're not going to give you money to spend £190k on a house they believe is only worth £170k, unless you can make up the shortfall with cash (you're ok on this front because of your large deposit). This is because if you fail to pay your mortgage and they repossess it they need to know they can get their money back when they sell it.
The surveyor will also need to check if the house is worth lending on at all. Less of a concern unless there are serious issues with it.

Because you have a high deposit this won't affect you too badly. Say you can get a loan of £126k. £126k/£190k is an LTV of 66% which will get you very good rates. If downvalued to £170k they'll use that to calculate LTV - £126k/£170k so you'll be paying rates for 74% LTV. It's only an issue if the LTV goes above the max the lender provides (e.g 90%). Of course this is as long as you are willing to spend more on a house than your bank thinks it's worth. But having a home may be worth more to you than just the property value.

You can get your own surveyor to check the condition of the property. Basic is a homebuyers. You can spend more to upgrade to a more detailed survey.
You should do at least a homebuyers survey. You don't want to buy a house only to then realise the roof isn't going to last the year.

The surveyor won't check gas or electrics. You can ask the seller for any official checks done recently (e.g. EICR or boiler service report). Or get an electrician or gas safe installer to check at your own expense before exchange. If the installations are fairly recent I wouldn't bother 

Bucki

davidmcn said:

Bucki said:

steve866 said:

Do you know how many hours your wife is likely to be working and what the salary will be?  It might be worth waiting until she’s been employed for a few months then you should be able to borrow a lot more.

Have your parents got any concerns what the anti money laundering checks could uncover in relation to their property sale? Why did they keep it in cash?

My parent's sold a property a home abroad which was not declared.

What do you mean by "not declared"?

they never declared in UK that they have a land/property abroad.

My question is; does the solicitor ask why my parents never declared the property in UK?

The property/land was sold and there is a Notary Letter to confirm, the money is in the bank abroad.

It be gifted to me on this case.

Bucki

Sunsaru said:

Bucki said:

steve866 said:

Do you know how many hours your wife is likely to be working and what the salary will be?  It might be worth waiting until she’s been employed for a few months then you should be able to borrow a lot more.

Have your parents got any concerns what the anti money laundering checks could uncover in relation to their property sale? Why did they keep it in cash?

1) My parent's sold a property a home abroad which was not declared.

What would solicitor uncover in this case for example?

2) Everybody is 'shouting' that I cannot afford it anyway.

Well, I believe I could manage it well because I would get a second job for sure.

The problem is getting bank to borrow the money.

I am also confused to why the Surveyor is needed to be paid once the house is paid?

3) Is the surveyor not needed to be done before purchase to verify if repair needed or value property?

1) The solicitor just needs to know that the money is legit. Whether it has been declared or not is not his/her problem.

2) As others have said, just because you think you can afford it doesn't mean the banks will. You do not stand a chance of getting the £240k with your current salary with your current circumstances. You may be able to once have the second job for 3 to 6 months.

3) That is correct. You pay the surveyor to do the survey before you buy the house.

Gook Luck

Oh my God! That means I am too late on this case?

Is this mandatory or am I missing something out on it?

Besides, how would this work? I put an offer on, then pay solicitor fee, then pay surveyor and if surveyor says "is not worth 240k" then what then? Do Ioose all the fees .... ?

I need to get understanding how all this works, I am new to all this.

Need to be aware for any other properties anyway.