Mortgage info + What do i ask & Viewing houses

mast3r

mast3r

mast3r

Soldato
Joined
28 Jan 2007
Posts
2,558
Location
Wilmslow, Cheshire
Hey guys,

I am hoping some of you will be able to help me.

My good lady has finally agreed that we need to buy a house and not be renting, i do not see the point in renting a house, paying somebody else mortgage with noting to show for our money.

So, tommorow we have an appointment with an Adviser at Bridge fords, i called to request a viewing on a house we are very interested in, the list price is £155k, this will be our first time buy, i am 25 (tommrow) and Claire is 22, we are both in full time work, i am on a pretty good wage and claire is on £16k, i do have some money in the bank that was for a deposit etc.

i have not really got any idea about mortgages and related things, only what i have picked up on whilst looking online for "Quotes", if you want to call them that.

i had a plan that i would get a loan to pay as a deposit, this will leave my funds in my bank so we are able to decorate and furnish the house, we have all of the furniture, but we will need a Cooker, Fridge, Freezer, Washer etc.

Take out an interest only Mortgage in hope that the Monthly repayments are lower so that i can clear the loan off, once the loan is paid up, switch from interest only to a full repayment mortgage. i dont know if this is good or bad, hence the appointment.

basically i called the estate agent, they asked some questions and gave me the opportunity to see one of their advisers before viewing the house, i took them up on the offer as i needed some guidance anyway, will they try and point me in a direction that suits them or will they be there to give me genuine and fair advice, IE, would they be on a commission with a certain lender perhaps?

What sort of questions do i need to be asking them? or will they be doing all of the asking?

Claire is pregnant and is Due in June, will this change anything?

Also, we are viewing the house with the estate agent, is there anything i need to be looking for inperticular? anything i need to be asking? would i ask if the price is negotiable at this point?

We are also going to view another house in the evening, but with no agent, is that normal?

(i sound such a noob)!

Thanks a bunch guys.

A very excited and rather nervous,

Martin.
 
i had a plan that i would get a loan to pay as a deposit
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This is pretty much a non-starter.

how much do you have deposit wise on a 155k house?

Take out an interest only Mortgage in hope that the Monthly repayments are lower so that i can clear the loan off, once the loan is paid up, switch from interest only to a full repayment mortgage
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Not the best idea either; it can be done however. When you take out a new mortgage you will be charged a fee for it, just bear that in mind as it will negate the savings on the 'loan' (which is 99% like to not go through), as loans and outstanding credit / finance are taken off your monthly wage.
 
Sounds to me like you are trying to cut corners in an attempt to make you think you can afford to be a home owner. If you take out a loan for the deposit you will need to declare this as it will hurt your overall affordability (i.e. the amount you can physically borrow dictated by your earnings). Fine, you need money for decorating but having some equity in the house is the key thing here.
 
When looking at a property, you should be asking these types of questions.

Why are you moving?
Have you ever been burgled?
Have you ever flooded?
Any disputes or noise issues with the neighbours?
If they have found a property to buy, how long is the chain above them?
Are there any known issues with the property?
 
they will take into account your loan when you apply for the mortgage which will affect your affordability.
 
I have been able to save £29000, but i also need to buy Claire a new car so perhaps £20k as a deposit, i am not trying to cut any corners, hence me coming here for help and advice.
 
I can't say too much as I've only had 1 mortgage however what I've learned is not to choose the cheapest option. Look for the lowest rate which has the greatest flexiblity in terms of early payments, "get out" clauses should you want to switch and also re-mortgaging should you wish to do so later on. I didn't do this and now wish I had.

cheers,

john
 
So... a loan is now out of the window!, i hold no debts, Claire owes about £1200 over two credit cards (which have been shredded might i add).
 
you will have to lie about the purpose for the loan or they will not give it to you...

rent and save for a few years i say... then if you get bored of being stuck with a baby its easier to leave...
 
I'd be very hesitant to get a loan to pay a deposit. You're robbing Peter to pay Paul.

If your partner is pregnant, they'll probably want to take her future earnings into account in terms of how much they'll lend you.

If you're viewing a house, check everything out - don't expect a survey to pick up anything of use. Surveys can mean as little as driving past to make sure the house exists. Check the water pressure - turn the shower on and flush the toilet. Check that all the lights come on - some of the lights in our house blow constantly because the guy who wired the place was an idiot; blown bulbs might have tipped me off in that direction. Have a look over things to make sure they look decently fitted. We've got no end of things that the last guy botched and we're now going to have to fix - huge curtain rails fitted into plaster with tiny expanding bolts, leaks, bad lights as mentioned before, badly fitted windows...

And yes, it's perfectly normal to view a house without an agent. I don't think we had an agent with us for any of our viewings when we bought our house.
 
What ever you do do not show your post to any mortgage advisers. They will laugh at you.

I am one and I did. :p


On a serious note, you cannot take out a loan to put down as deposit and most lenders will not give you interest only any more, especially as a first time buyer, so your plan is pretty much out of the window.

The post is also pretty useless in a GD forum, becuase the world and his wife "think" that they know the ins and outs of mortgages, which in my experience is rarely the true case and you end up getting a lot of duff information. The mortgage adviser you are going to see will be the best person to give you the information you need. If you have any concerns after it that you are not happy with then you can always speak to another one.
 
edscdk said:
you will have to lie about the purpose for the loan or they will not give it to you...

rent and save for a few years i say... then if you get bored of being stuck with a baby its easier to leave...
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I like your style, however i have no plans on leaving.

we have rented for close to 2 years, and it has been much more difficult to save whilst renting, i did think about moving back in with parents for a few months to save a some more for a deposit, but Claire wasnt to keen on the idea, plus we would then have to fork out for storage.
 
mast3r said:
I have been able to save £29000, but i also need to buy Claire a new car so perhaps £20k as a deposit, i am not trying to cut any corners, hence me coming here for help and advice.
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£9k on a car? Unless you're having quintuplets, there's no reason you need a £9k car. Our Focus cost £6.5k and that was at the high end of things. Put the money into the house - it'll go a lot further.
 
mast3r said:
Hey guys,

I am hoping some of you will be able to help me.

My good lady has finally agreed that we need to buy a house and not be renting, i do not see the point in renting a house, paying somebody else mortgage with noting to show for our money.
Click to expand...

A bit like the interest on a mortgage then. If the rent you are paying now is less than the interest on a mortgage then you need to stop thinking renting is throwing money away.

Also if your keen on buying a house, dropping £9k on a new car is not the best of ideas. Get a loan after buying the house for the car if you really need one, especially if that £9k would help get a lower LTV.
 
mast3r said:
So... a loan is now out of the window!, i hold no debts, Claire owes about £1200 over two credit cards (which have been shredded might i add).
Click to expand...

Ok, so say you have 20k then for a deposit (though, you can make this 24-25k by saving on the car you'd buy).

That would be enough for the 10% deposit (some lenders are doing 95% at the moment though I believe), the solicitor fees (around £1000), with a little bit left over to furnish the place.

Do you have furniture at the moment? As the majority of that you should be able to transfer over into the new house for the time being. Chances are the new place will already have carpet / wood floors, have the garden done to an extent and if you pick a decent enough one it should already look half respectable. There shouldn't be a massive need to start spending the cash (unless you don't have the furniture at the mo!), a lick of pain / wall paper won't cost too much and will transform whatever place you pick for relatively cheap costs.

Talk to them about the area (unless you know it).
Ask about crime
Schooling
Council tax
The neighbours (very important - **** neighbours are a nightmare).
Is it right next to a road, is the road busy etc etc

Those types of questions to get a feel for the place, then work your way up to the more typical questions:

How old is the boiler.
Is there work which needs doing on the house (e.g. is the roof ok, sewers ok etc)

and so forth.
 
You could put down 15% deposit (£23250) and use whatever you have left to do the place up?

As long as a lender will offer you the difference ~£132,000 there's no problem or need for loans?

Of course, more deposit = better rates on the repayments but that's then down to how much you can afford and how quickly you want to move out. remember you won't be paying rent anymore so that will go straight towards the mortgage. The lender will look at your earnings and your outgoings to make sure you can still afford your repayments even with worst case lending rates (probably adding 1.5% onto what they quote you).

Using the advisors in the estate agents selling the house will give them a big advantage in negotiations if you decide to make an offer as you will likely have told them your financial details and they will know how much you can afford.

Hope that makes sense!
 
Well you can get a mortgage with a 10% deposit, So aslong as you can afford the repayments then go for it. Get a repayment and when/if yuo get a bit of extra cash you can pay it straight off your mortgage
 
i was thinking £6k on a car, £800-1000 for insurance (i hate monthly payments, where possible i try and pay upfront), and the rest to keep as a bit of a float if we have any problems and we need some cash.
 
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