First time buyer

jamiec2003

Good morning,

I am looking for some advice please.

I'm a first time buyer saving my deposit.

A little bit of background history, i went into an IVA back in 2014 due to financial troubles and a toxic relationship i was in at that time. I received my completion certificate in 2018. I settled early with a "sprout loan" and it is completely off my credit report.  I've worked hard and got my credit report back up to "excellent" i've checked equifax, transunion, experian, an they are all in the excellent bracket... which i am proud of with what i have been through.

Looking to the future, i've almost saved a 20% deposit to buy my first home, i'm in my mid 30's and getting a mortgage solo.

before i sit down with the bank and discuss what i need to do, please could you advise me of other expenses i need to save for? with it being my first home purchase I am looking to find out what other expenses i need to budget for, things i may not know i need to budget for.

Stamp duty? surveys? budget for furniture.

I don't want to be unprepared for such a big purchase and fall for any rookie mistakes.

As a rough guide, the average price in my area for a nice 2 or 3 bedroom is around £150,000 / £170,000

What would be the best thing to do, put up a 5% or go right in for the 20%

Any advice would be greatly appreciated.

Thank you 

MovingForwards

Sit down with a mortgage broker rather than your bank, they'll have access to loads of potential lenders.

Furniture you can pick up previously loved or free, saves loads of money. Facebook, gumtree, furniture charity shops etc.

As a FTB you may get a free survey from your lender.

Budget a couple of grand for legal costs and email at least 3 solicitors to obtain quotes, do that now . Tell them your potential purchase budget, area, property type, whether it will be freehold / leasehold, and if you're using a LISA or H2B ISA for it.

jamiec2003

Hi,

Thank you for that, I thought the bank may be a good place to start, if i arranged to speak to one of their advisors? 

I have no ISA and i missed the bandwagon of the H2B, i'm just putting the savings into a savings account with my bank.

I heard the free surveys are just a basic survey? would i not need or be beneficial for one to look a bit deeper into the property? I see there a different tier surveys.

what about the stamp duty will i not need extra to cover that expense?

K_S

@jamiec2003 Limited to the mortgage aspects of your post -

- With an IVA completed 4+ years ago, you should have access to decent rates with a 20% deposit.

- based on the limited info in your post, it looks like your recent credit history is clean which is a positive as well

- having a sizeable deposit is a definite positive. Unless there's any particular reason you want to hold back cash, based on the limited info in your post, you want to have at least a 15% deposit to maximise your options and minimise your mortgage related costs.

- If you are aiming to get a realistic idea of your options in the whole mortgage market, I would echo the poster above who has recommended speaking to a good experienced broker rather than one specific lender.

- the basic survey you are referring to is called a lender valuation done solely for the lender's benefit, you may or may not even get a copy of a the report. Whether or not there is a fee for it will depend on the lender and product. Often, buyers will do their own survey (home-buyers or full buildings survey) after the mortgage offer comes through.

Good luck!

simon_or

OP, don't waste your time talking to high-street banks, most of them need the IVA to be discharged for 6 years.

A broker will look at both high-street banks (if any will lend to you) and other banks.

Sam3007

Try some of the free brokers. Budget also for removal cost, and any potential repairs/refurbishment as they are easier done before moving in.