Topic: The 'Eeeek...buying/saving for a house' thread

[gazzalfc]

One I will throw out though is, regarding ISA's, can these be started/taken out at any stage?

We have some savings put aside but I feel we're not making the most of our earnings by simply having it sit there in our standard bank savings accounts.

You can only set up 1 ISA in a Tax year (April to April) so if you have set one up in your name in the past month then you will have to wait until April 2020 before you can.

But the sooner you open it the more bonus you can end up claiming once you buy your house. We had no idea what house we wanted or what kind of price range we were looking for but knew we needed to start putting money to 1 side for the deposit so it's the 1st thing we did. The max you can put in is £1k initially then a max of £200 a month after. It's a great way of not getting tempted to spend your deposit on a holiday or something else as its not in a place that is easily accessible

If you are buying with a partner (I'm assuming since you said we) then they can open one as well and they get the bonus as well.

[Phil M]

You can only set up 1 ISA in...

Thanks mate.

[I've been a good boy]

Who would be better to go for a mortgage with, a mortgage advisor or the estate agents? So confused, not a fan of this property buying thing I have no idea how people do it for a living. Anyway, I've been given very similar rates by both but the estate agents gave me a £595 lifetime remortgage fee and a £99 admin fee, which the other advisor doesn't have these fees. But then when it comes to the remortgage after 2 years or 5 years, he'll have a fee. Anyone who can advise, would be much appreciated as I genuinely don't have a clue. I tried to play them off against each other but they both look similar

[Jake]

Stay away from Estate Agents - their advisor is only going to recommend you products he gets a kickback on. Estate Agency is the biggest scam in the UK, fucking crooks the lot of them. Get paid thousands of pounds to put your house on rightmove whilst all the work is done by the conveyancers/solicitors in the background.

Go to an independant advisor, or just ring the banks yourself. HSBC do some good mortgages with no product fee, as do Leeds Building Soc.

[gazzalfc]

We went through a broker (L&C) with ours. They still get a kickback but have access to a wider range of mortgage lenders and we ended up getting a deal that even HSBC couldn't match.

They also talk you through a lot of the jargon so you dont feel lost in the process.

[Claire.]

Who would be better to go for a mortgage with, a mortgage advisor or the estate agents? So confused, not a fan of this property buying thing I have no idea how people do it for a living. Anyway, I've been given very similar rates by both but the estate agents gave me a £595 lifetime remortgage fee and a £99 admin fee, which the other advisor doesn't have these fees. But then when it comes to the remortgage after 2 years or 5 years, he'll have a fee. Anyone who can advise, would be much appreciated as I genuinely don't have a clue. I tried to play them off against each other but they both look similar

I had a meeting with a mortgage advisor linked to an estate agent and their searches are limited, we eventually went with an independent cos they can look at the whole market. Ours had relationships with the local agents and handled negotiations for us, as well as sorting a solicitor and doing all the work for the mortgage. Fees wise, ours either was free if we took life insurance cos he got a kick back or you could just pay a few hundred. Everything was explained and open. It was worth paying the fee cos everything was smooth.

No idea what you mean about the remortgage etc, I thought that would be between you and the lender? I've stayed with the same lender and never been charged a fee.

[Too early for flapjacks?]

Who would be better to go for a mortgage with, a mortgage advisor or the estate agents? So confused, not a fan of this property buying thing I have no idea how people do it for a living. Anyway, I've been given very similar rates by both but the estate agents gave me a £595 lifetime remortgage fee and a £99 admin fee, which the other advisor doesn't have these fees. But then when it comes to the remortgage after 2 years or 5 years, he'll have a fee. Anyone who can advise, would be much appreciated as I genuinely don't have a clue. I tried to play them off against each other but they both look similar

I used this tool: https://www.moneysavingexpert.com/mortgages/best-buys/. Found it quite handy to compare mortgages.

There is also a first time buyers guide which is quite useful: https://www.moneysavingexpert.com/first-time-mortgage/

[Giovanni]

That lifetime remortgage fee sounds like a quiet way of diddling you. I expect that it'll only be valid if you stay on the same mortgage for the life of the mortgage which will cost you tens of thousands extra because of the higher interest.

Be very careful with that. It never came up when I bought my first house 30 months ago, and it's not come up as we look to sell and move now.

I'm going through this at the moment, and will differ per advisor obviously but my arrangement fee is only due once. When you re-mortgage, there is no additional fees.

The wait to find out if my mortgage has been accepted is killing me. My Credit rating is high 900s but I turnover A LOT via gambling sites.

[Rhi]

We are in a bit of a rent/buy dilemma at the moment. I've just accepted a job offer down south and had to take a pay cut (I'm re-training). My other half has been out of her minimum wage job for a month or so already, and we'll be moving in about 6 weeks. We have 2 dogs and finding a 1-bed flat to rent with dogs is a) hard and b) extortionate. My contract at work is going to be 3.5 years and the plan is from the employer that I stay on after that. So it makes sense to look at buying I think. We have a decent deposit saved up between us (around £35k), but we're not keen on over-stretching ourselves, so I think my upper limit for buying is about £140k, which down south is fuck all . We're viewing somewhere that's £125k on Friday. It's small (very small), but looks perfect for what we need and wouldn't be a financial stretch for us. No chain.

So...
a) Will it be a problem that my other half won't have worked for a few months by the time we're looking to finalise a mortgage?
b) Neither of us have really done this before... what should we be looking for when we view the property? Obviously if we like it or not... but is there other stuff?
c) Should we get a Decision in Principle before viewing or not necessary really? I'm pretty sure that even just on my salary that I could get a mortgage for the reminder of the money but will they view my OH as a dependent if she's not already in employment (difficult since we're moving about 500 miles )?
d) Has anyone ever done a joint mortgage with someone you're not married to? Is it more hassle?

Cheers for any advice or insight you can give. It's quite daunting, all of this!

[I've been a good boy]

Noted the advise above from all, thanks and will defo take it into account. I've got a mortgage in principle, does that mean it's been accepted or can it still fail? My credit rating is really bad due to credit cards, switching banks etc so no idea how it went through. Good news is that we've had an offer for a house accepted, bad news is that I've seen my dream type of house put up for sale today. Bit of a dilemma, but going to follow my heart and go for the second house.

[gazzalfc]

If you are going down the buying route then maybe drop in that you may want to convert the property into a rental in future. I know 3.5 years is a long time and they may say they want to keep you after that but there are no guarantees.

A property down south will be prime rental and will give you some mortgage protection if you were both stuck down there without a job

[gazzalfc]

Noted the advise above from all, thanks and will defo take it into account. I've got a mortgage in principle, does that mean it's been accepted or can it still fail? My credit rating is really bad due to credit cards, switching banks etc so no idea how it went through. Good news is that we've had an offer for a house accepted, bad news is that I've seen my dream type of house put up for sale today. Bit of a dilemma, but going to follow my heart and go for the second house.

A decision in principal is only based on what you have told them. There wont have been a deep credit check on you yet.

Houses fall through all the time. Until you have a mortgage in place and exchanged contracts then nothing is legal. So view your dream house and make a decison

[Rhi]

If you are going down the buying route then maybe drop in that you may want to convert the property into a rental in future. I know 3.5 years is a long time and they may say they want to keep you after that but there are no guarantees.

A property down south will be prime rental and will give you some mortgage protection if you were both stuck down there without a job

Thanks for that. Will keep it in mind. Probably best discussing all of this with a broker aren't we? I'm loath to spend more money than we have to though

[Jake]

tenants in common (i.e the two of us are essentially one owner) or joint tenants (where you essentially divvy up % ownership depending on how much cash each of you has put in - handy if it's wildly different or buying with friends).

That bits the wrong way round mate - JTs are both 100% owners and you inherit the lot when the other one pops, TIC is the one where you divvy up (but without a declaration of trust the assumption is 50%).

Rhi you're in the same situation as me and debs, you'll have a hard time finding a mortgage lender that will just have you named on it if she's going to be an owner. We got one with HSBC and some other banks do them but your pool will be limited.

See what the area is like before you bid on owt - I had my heart set on a nice house a few months before we got this one, but I drive through the area most days and on reflection its a fucking shithole

You may as well get a Decision in Principle, but don't share it with the estate agents. Some of the crooks (William H Brown) will use it to tell your seller what you can really afford and then you're fucked in negotiations.

Keep your cards close to your chest, find a nice house in a nice neighbourhood and you'll be fine.

[Jake]

If my clients had seen me like you've seen me I'd be hung drawn and quartered

[gazzalfc]

Thanks for that. Will keep it in mind. Probably best discussing all of this with a broker aren't we? I'm loath to spend more money than we have to though

L&C are free. They take their cut off the bank you choose to go with. Couldn't fault them. All done online and over the phone. You can make it fee free (or fee paid at the end of your mortgage).

[Claire.]

Thanks for that. Will keep it in mind. Probably best discussing all of this with a broker aren't we? I'm loath to spend more money than we have to though

Go and see a mortgage/financial advisor As you're changing job and your partner isn't working it's complex and lenders don't like complex. Where are you looking?

[Rhi]

Go and see a mortgage/financial advisor As you're changing job and your partner isn't working it's complex and lenders don't like complex. Where are you looking?

Haha... thanks! Yeah it's probably not great timing but the alternative is renting for a few months until we're settled and it just seems like a waste to be honest! Plus we'd likely have to leave the dogs with my Dad or my brother and I don't want to do that to them (the dogs, not my dad/bro ). We're viewing a flat on Friday, so will try to speak to a mortgage adviser this week or next too. Tunbridge Wells is where we're moving to. Proper trek from where we are now... and from Liverpool 

[I've been a good boy]

What's an acceptable EPC rating for a house? One I'm currently looking at has 76, so a C category with potential to go upto 91.

[Jake]

There's no right and wrong answer, but obviously the higher the better.

[Claire.]

Haha... thanks! Yeah it's probably not great timing but the alternative is renting for a few months until we're settled and it just seems like a waste to be honest! Plus we'd likely have to leave the dogs with my Dad or my brother and I don't want to do that to them (the dogs, not my dad/bro ). We're viewing a flat on Friday, so will try to speak to a mortgage adviser this week or next too. Tunbridge Wells is where we're moving to. Proper trek from where we are now... and from Liverpool 

I assumed London and with your budget envisaged you living in some sort of converted garage but then I realised they go for £250k+ Renting might seem like a waste but it's a new area so might not be a terrible idea (can you not rent a house with dogs?!) so you get settled and know the places you want to be and how the market is. I've heard of it but absolutely no idea where it is so no use there!

Our house was no chain and we had the decision in principle etc and it still took like 3 months to complete.

[Rhi]

Hahaha! I mean it's not far off converted garage territory even in Tunbridge Wells . We're viewing a 1 bed flat and a studio. We can rent with dogs, but seems to be significantly more expensive. But if these places we're seeing tomorrow are no good I'll be doing more phoning around about that. Fucking hard work finding a flat, and even more so when you live 300 miles away! Ugh!!

[Rhi]

So... we've had an offer accepted. Eeeek!

Now I'm trying to push my future employers to get me a contract because I can't start the full application for a mortgage until I have a contract in place. I hope the seller doesn't lose patience :-/ (offer was only accepted Friday, so hopefully will be OK!) ... we are both keen to move fast, but I know these things can be sloowwwww.

[gazzalfc]

So... we've had an offer accepted. Eeeek!

Now I'm trying to push my future employers to get me a contract because I can't start the full application for a mortgage until I have a contract in place. I hope the seller doesn't lose patience :-/ (offer was only accepted Friday, so hopefully will be OK!) ... we are both keen to move fast, but I know these things can be sloowwwww.

Congrats. It's a really strange feeling. Like it shouldn't be that easy to just say 'yeah we'll sell you our house' like it was a sofa on gumtree.

Communication is definitely the name of the game now. Everything for our house was done either over the phone or email. I know it's a pain but maybe set aside 2 hours of your working day where you can easily get to a phone or leave your office to take a private call.

While you are waiting for your contract to come through, there are a few things you can proactively do to be ready.

Have a shop around for solicitors. Your lender/broker can help out with this. And don't be afraid to badger your solicitor/lender/broker if you think it's going too slow. They only get full payment on completion so they want it to go through as much as you do.

Get a copy of all your current wage slips and proof of where your deposit is coming from (if it is partly gifted then you need a signed letter from who ever is gifting it to you). Your solicitor will need these.

It'll be very rare that a solicitor will work outside 9-5 monday-friday so be prepared to be calling them in working hours.

It took us 3 months from offer acceptance to us moving in.

Oh and little tip. Ask the estate agents selling the house to take it off the market. Shows that you want the sale to go forward and stops anyone else from putting in a better offer

[I've been a good boy]

^ Good points. Can I just add that while you're at it, also prepare things like your ID, proof of deposit, last 3 bank statements etc. Thankfully we had it all so didn't take long, just need to visit the solicitors tomorrow to fill out all their paperwork. But the better prepared you are, the sooner you'll get the house/flat.

[Rhi]

Nice one, thanks both!

I've had them take it off the market, and they have done. I've got a mortgage offer in place (decision in principle), now just need to get them to move forward with it, which they won't do until I get a signed contract off my future employers (which I am working on).

I went with London & Country in the end (someone here recommended them and I have to agree that they were great), and they've recommended a conveyancer. I'm going to go with their suggestion in the hope it moves things on quicker.

[Jake]

and they've recommended a conveyancer. I'm going to go with their suggestion in the hope it moves things on quicker.

Who? The big places tend to use conveyancing factories. Fast turn around but 17 year olds with no qualifications doing the work. They give a kickback to the mortgage people and only get like 100 quid from the whole deal, so they'll bash it out asap without doing the proper checks.

If you can, use a high street firm.

[Rhi]

Who? The big places tend to use conveyancing factories. Fast turn around but 17 year olds with no qualifications doing the work. They give a kickback to the mortgage people and only get like 100 quid from the whole deal, so they'll bash it out asap without doing the proper checks.

If you can, use a high street firm.

O'Neill Patient is who they've recommended. Honestly wouldn't know the difference between them and anyone else, and think the whole thing is a bit of luck. 

I'm just looking at getting an independent full structural survey done, though. Probably will do that. No idea how to go about it. How did people do these things before Google existed?!!?!

[gray19lfc]

We went through a broker (L&C) with ours. They still get a kickback but have access to a wider range of mortgage lenders and we ended up getting a deal that even HSBC couldn't match.

They also talk you through a lot of the jargon so you dont feel lost in the process.

Would avoid L&C. Used them to find a mortgage recently and although they were fairly helpful in the initial stages of finding a deal, they have been nothing but a pain in the arse since applying for the mortgage. Slow to respond to enquiries (if they even bother to respond), they instructed a standard survey rather than a Homebuyers report which I specifically asked for on several occasions, they were late sending out my mortgage pack and I had to chase several times for this).

If you are comfortable using the internet you are far better off using the Money Saving Expert mortgages tool https://www.moneysavingexpert.com/mortgages/best-buys/

The deal I got with L&C was available on the Money Saving Expert site and I wish I had known that sooner.

[gray19lfc]

I’m close to exchanging contracts on a house I am looking to buy. My solicitor has written to me today telling me there appears to be no building regulations completion certificate for the original construction of the house, so they are asking the seller to take out indemnity insurance. He also said the street is unadopted, meaning road maintenance is handled by the property developers and not the council.

This is the only second time in my life I have been in the process of buying a house. Are the points above big enough risks to warrant pulling out of the purchase?!

[Too early for flapjacks?]

If I sell my flat, do the solicitors deduct their own fee and the mortgage exit fee before they deposit the money into my account?

[swoopy]

Completed on our first house last week 3 Bed-Semi. Brand new build. Very exited. Been very interesting watching them get built up since we put our reservation fee down nearly 12 months ago.
Started moving everything in over the weekend.
We bought the furniture over a number of months to split it out over pay-periods / when places had sales on so pretty much got everything. Will see what else we need after we've got everything together.

Great to finally have our own place.

[stewil007]

If I sell my flat, do the solicitors deduct their own fee and the mortgage exit fee before they deposit the money into my account?

If I recall rightly, yes they deduct everything that's needs to go to anybody that is required to be paid, and you should only be left with any 'profit' on the sale

[Titi Camara]

I’m close to exchanging contracts on a house I am looking to buy. My solicitor has written to me today telling me there appears to be no building regulations completion certificate for the original construction of the house, so they are asking the seller to take out indemnity insurance. He also said the street is unadopted, meaning road maintenance is handled by the property developers and not the council.

This is the only second time in my life I have been in the process of buying a house. Are the points above big enough risks to warrant pulling out of the purchase?!

You moved to Crown Park?

[Jake]

If I sell my flat, do the solicitors deduct their own fee and the mortgage exit fee before they deposit the money into my account?

Yes.

[Rhi]

So... I've had a mortgage approved and it's with the solicitor. When they sent me the lease (it's a leasehold flat) it says "no animals without prior written consent", but one of the main reasons we are buying not renting is because we have two dogs. I've asked the solicitor to go back to the seller to ask the Lessor for permission and not heard anything. Grrrrrrrrr.

At the moment we're gonna be homeless (obviously not literally, we'll find something short term) when I start my new job because it's almost deffo not going to complete on time. And if the Lessor doesn't give consent then we're back to square one.

[CraigDS]

Estate agents who edit all of their listings daily on Rightmove (normally by changing the rent up/down by a tiny amount) so they jump to the top of the most recent ads - fucking annoying to try to filter through those looking for the actual new ones to the market.

[Claire.]

So... I've had a mortgage approved and it's with the solicitor. When they sent me the lease (it's a leasehold flat) it says "no animals without prior written consent", but one of the main reasons we are buying not renting is because we have two dogs. I've asked the solicitor to go back to the seller to ask the Lessor for permission and not heard anything. Grrrrrrrrr.

At the moment we're gonna be homeless (obviously not literally, we'll find something short term) when I start my new job because it's almost deffo not going to complete on time. And if the Lessor doesn't give consent then we're back to square one.

Phone them, a lot

[redbyrdz]

So... I've had a mortgage approved and it's with the solicitor. When they sent me the lease (it's a leasehold flat) it says "no animals without prior written consent", but one of the main reasons we are buying not renting is because we have two dogs. I've asked the solicitor to go back to the seller to ask the Lessor for permission and not heard anything. Grrrrrrrrr.

At the moment we're gonna be homeless (obviously not literally, we'll find something short term) when I start my new job because it's almost deffo not going to complete on time. And if the Lessor doesn't give consent then we're back to square one.

Prime example of what is wrong with the leasehold system. If you're buying a place, it should be up to you to decide what to do with it, nobody else (well as long as within the law etc). How the fuck can you own a flat, but its not up to you whether you have pets? Thats not owning, thats just renting.

[Rhi]

Phone them, a lot

She was proper mardy with me when I rang yesterday. She pretended not to have seen my email. Gonna ring again tomorrow for an update. It's mad how they act like they're doing you a favour not like actually being paid good money to do the work!

Prime example of what is wrong with the leasehold system. If you're buying a place, it should be up to you to decide what to do with it, nobody else (well as long as within the law etc). How the fuck can you own a flat, but its not up to you whether you have pets? Thats not owning, thats just renting.

It's infuriating. Part of me is considering just buying it and having the dogs there and be done with it, but I'd prefer to have it all sorted.