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  • FIRST POST
    • JadeLouise
    • By JadeLouise 9th Feb 18, 9:29 PM
    • 10Posts
    • 6Thanks
    JadeLouise
    First time buyer needs advice!
    • #1
    • 9th Feb 18, 9:29 PM
    First time buyer needs advice! 9th Feb 18 at 9:29 PM
    Hello !

    Total newbie over here. A little into - I am 21 and my partner is 23 and we live with his parents and have a 1.5 year old son. We are currently in the process of saving money with the end goal of getting a mortgage to buy our own house. We aim to have saved enough money for a 10% deposit by this time next year.

    I am just SO confused about how mortgages work, how do you find a house, how do you apply, where do you go ?! Who do you speak to, how do you make sure you get a good deal. I have so many questions. I have downloaded and read the first time buyer guide but it was very detailed. I could really do with a step by step overview.

    I have checked my credit score in 2 different places and that confused me even more. I know we need the money first but im so worried well have that then miss out on some vital parts. I assume there is more to a mortgage than a deposit.

    Any help for a clueless person who doesnt know anyone that owns a house would be great.
Page 1
    • enjoyyourshoes
    • By enjoyyourshoes 9th Feb 18, 9:41 PM
    • 1,061 Posts
    • 1,302 Thanks
    enjoyyourshoes
    • #2
    • 9th Feb 18, 9:41 PM
    • #2
    • 9th Feb 18, 9:41 PM
    Credit score- get yourself on electoral register and have bank account you keep in the black

    Basic info for mortgage:-

    https://www.moneyadviceservice.org.uk/en/articles/mortgages-a-beginners-guide

    Comparison sites are good way to research the actual mortgage market, but you need to have knowledge on we looking for.

    How to find a house- look on property websites (prime location, on the market, hoopla, right move etc) just to get idea of areas, price and what you get for £

    Start off with small steps and then grow with confidence

    Watch location, location , location !
    Debt is a symptom, solve the problem.
    • JadeLouise
    • By JadeLouise 9th Feb 18, 9:44 PM
    • 10 Posts
    • 6 Thanks
    JadeLouise
    • #3
    • 9th Feb 18, 9:44 PM
    • #3
    • 9th Feb 18, 9:44 PM
    I suppose the problem is I dont know what I am looking for. I have never had a credit card but pay direct debits for my phone. On experian I have a 100% credit score but I am not sure this is a reliable source ?

    I keep our finances in good check and use budget planning apps to keep a track on income and expense which is very helpful.

    Credit cards and loans worry me.
    • ACG
    • By ACG 9th Feb 18, 9:46 PM
    • 17,032 Posts
    • 8,921 Thanks
    ACG
    • #4
    • 9th Feb 18, 9:46 PM
    • #4
    • 9th Feb 18, 9:46 PM
    Work out how much you can lend (either via a Mortgage Broker or speaking to 1 or 2 banks - the difference can be quite significant).
    Work out if you are likely to get a Mortgage (check your credit reports)
    Go and view some properties.
    Make an offer
    If/when accepted, make a Mortgage application.

    Some estate agents may want a decision in principle, you would get that from a Mortgage lender. You can speak to a broker or check online price comparison sites in order to find the best products out there. You have a year to do some research, but if you want someone to basically hold your hand and do the bulk of it for you, a broker might be the way forward.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
    • enjoyyourshoes
    • By enjoyyourshoes 10th Feb 18, 9:03 AM
    • 1,061 Posts
    • 1,302 Thanks
    enjoyyourshoes
    • #5
    • 10th Feb 18, 9:03 AM
    • #5
    • 10th Feb 18, 9:03 AM
    [QUOTE]Credit cards and loans worry me./QUOTE]

    They should.

    Don't get a loan, save for whatever you need.

    CC are the 'devil in carnet', don't believe the guff about needing a CC to boost your 'credit rating' as most sane mortgage lenders will look at how you effectively manage your money (not the artificial credit score). So no debt, bank account black and good salary and prospects will benefit you.

    Enjoy the journey its great fun don't be frightened by it all !
    Debt is a symptom, solve the problem.
    • AnotherJoe
    • By AnotherJoe 10th Feb 18, 9:25 AM
    • 9,605 Posts
    • 10,683 Thanks
    AnotherJoe
    • #6
    • 10th Feb 18, 9:25 AM
    • #6
    • 10th Feb 18, 9:25 AM
    Credit cards are not "the devil incarnate"

    Credit cards give you consumer protection and various goodies such as money back, air miles, as long as you use them wisely. I have more than I can shake a stick at all on automatic direct debit full payments so I can't miss any. Every few months I get a cashback voucher. It costs me nothing.

    Lenders will indeed use your credit card history to understand your abilty to manage money, and having no credit facilities at all is worse than a good credit card history.
    • G_M
    • By G_M 10th Feb 18, 9:45 AM
    • 44,412 Posts
    • 52,717 Thanks
    G_M
    • #7
    • 10th Feb 18, 9:45 AM
    • #7
    • 10th Feb 18, 9:45 AM
    https://www.amazon.co.uk/Home-Buying-Dummies-Eric-Tyson/dp/0470453656/ref=sr_1_12/261-0415077-8915442?ie=UTF8&qid=1518255842&sr=8-12&keywords=buying+a+house+for+dummies

    https://www.amazon.co.uk/Mortgages-Dummies-Third-Eric-Tyson/dp/0470379960/ref=sr_1_8/261-0415077-8915442?ie=UTF8&qid=1518255842&sr=8-8&keywords=buying+a+house+for+dummies

    or free from your library
    • takman
    • By takman 10th Feb 18, 10:51 AM
    • 3,392 Posts
    • 2,996 Thanks
    takman
    • #8
    • 10th Feb 18, 10:51 AM
    • #8
    • 10th Feb 18, 10:51 AM
    Credit cards and loans worry me.
    They should.

    Don't get a loan, save for whatever you need.

    CC are the 'devil in carnet', don't believe the guff about needing a CC to boost your 'credit rating' as most sane mortgage lenders will look at how you effectively manage your money (not the artificial credit score). So no debt, bank account black and good salary and prospects will benefit you.

    Enjoy the journey its great fun don't be frightened by it all !
    Originally posted by enjoyyourshoes
    There are many benefits of having a credit card such as Section 75 protection and cashback that it's almost silly not to have one. Having a credit card and paying it back in full each month shows your responsible with credit and can manage it sensibly which is what lenders want to see.
    Last edited by takman; 11-02-2018 at 8:51 AM.
    • Saarah
    • By Saarah 10th Feb 18, 11:01 AM
    • 3 Posts
    • 0 Thanks
    Saarah
    • #9
    • 10th Feb 18, 11:01 AM
    • #9
    • 10th Feb 18, 11:01 AM
    HI
    We have just gone through the same thing! We saved the money and now just trying to find a house we like. We did use a mortgage advisor, best to look around or get advice from friends/family if they have used them. Some can be £300 and some much more! But for me it was worth the money as they took the hassle out of it and we could speak with them and they found a mortgage that works for us and is a good deal (I think!)

    I have a credit score with clear score but have t taken much notice of it and they didnít ask for it, so who knows!
    • oz0707
    • By oz0707 10th Feb 18, 11:07 AM
    • 538 Posts
    • 147 Thanks
    oz0707
    Look for a suitable house. Think about what you need. 2 bed? 3 bed if guests or possible baby number 2? Look for suitable properties on search portals - zoopla, right move. See average prices. Once you've saved 10%+ start comparing mortgage deals on comparison sites. Again select for suitability with length and fixed/tracker. Once you find and house your happy with apply for mortgage and things will come together.

    There are a few pitfalls but if you hang round on a forum like this in the meantime, reading posts and learning from others you should pick up hints and tips and be in a good position when you come to buy. Nobody knows everything straight away don't worry you will learn
    • Smodlet
    • By Smodlet 10th Feb 18, 12:20 PM
    • 3,171 Posts
    • 6,291 Thanks
    Smodlet
    Look for a suitable house. Think about what you need. 2 bed? 3 bed if guests or possible baby number 2? Look for suitable properties on search portals - zoopla, right move. See average prices. Once you've saved 10%+ start comparing mortgage deals on comparison sites. Again select for suitability with length and fixed/tracker. Once you find and house your happy with apply for mortgage and things will come together.

    There are a few pitfalls but if you hang round on a forum like this in the meantime, reading posts and learning from others you should pick up hints and tips and be in a good position when you come to buy. Nobody knows everything straight away don't worry you will learn
    Originally posted by oz0707


    Excellent post, if I may say so, oz0707 and, fwiw, I and many who know way more than me will be here when you have questions, OP. One thing I do know about is viewing houses, what to look out for having seen over a hundred in my time, most of them only six years ago (being forced to downsize sucks, nothing is ever good enough)

    Good luck, OP and as oz says, please remember no-one is born knowing this (or any other) stuff. We all have to learn and MSE is one of the best places to do so, imho.
    Last edited by Smodlet; 11-02-2018 at 1:53 PM.
    What is this life if, sweet wordsmith, we have no time to take the pith?
    Every stew starts with the first onion.
    I took it upon myself to investigate a trifle; it had custard, jelly, soggy sponge things...
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