Thinking of buying a place, help, advice please.

elh_2009

elh_2009

elh_2009

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9 May 2009
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1,187
So im thinking of buying my 1st place and ive got a few questions.

1 bedroom flat at say 120,000.

How much deposit would i need.
Rough monthly mortgage repayments
Bills?
Legal fees?
What do i need to do to even get a mortgage, i have no idea where to start do i need a solicitor?

Place will be in London, Essex, Waltham Cross those kind of areas.

Thanks.
 
Don't worry about knowing nothing, everyone starts somewhere. The size of your deposit depends entirely on the amount of your savings that you want to add to the pot and the mortgage agreement that you arrange with your chosen bank. This also affects the size of your monthly payments.

Bills are fairly personal too, I'm afraid. You might use a lot of electricity, or not. You can find out what your council tax band might be online.

Your first port of call should be your high street bank. Ask for an appointment with their mortgage advisor. When you go, they will answer any questions you have. And don't be afraid to ask lots of questions, even the most basic ones, as mortgages are mind-numbingly boring to most people and the ins and outs of them are not exactly bedtime reading.

Solicitors come later. They too will guide you almost effortlessly through the process.
 
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Edrof said:
The size of your deposit depends entirely on your savings and the mortgage agreement that you arrange with your chosen bank. This also affects the size of your monthly payments.

Bills are fairly personal too, I'm afraid.

Your first port of call should be your high street bank.
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Yeah i understand that but would say 10% be enough for a deposit? like is there a min amount.

Gas, electric, council tax ect there must be a rough price for a 1 bed flat? just so i can get a rough estimate of how much my outgoing will be
 
I added more to my post.

I'm sure I read that 100% mortgages are back on the market now. Your 10% should be enough, although you must go to your bank's web site and have a poke around to confirm what deals they offer. It's been a long time since I paid bills on a one-bedroomed place, so I can't really give you an estimate, sorry.
 
From here, 6th of March:

If you are a first-time buyer with only a 5% deposit to put down then Chelsea Building Society is offering a two-year fixed-rate deal at 3.69%. However it does come with a pretty heft fee of £1,825.

Those people with a 10% deposit looking for a fixed deal should look to Norwich & Peterborough Building Society which is offering a 4.04% two-year fixed deal with a £295 fee.

Lloyds TSB is offering a 95% Lend a Hand mortgage with a great rate of 4.34% with no fee. The catch is that a family member must deposit 20% of the value of the property into a linked savings account. The Lend a Hand Savings Account pays 2.7% AER for three and a half years, after which it will be 0.5% above the Bank of England Base Rate.

If you want a tracker rate (which moves in line with the Bank of England base rate) HSBC offers a lifetime tracker at base rate + 3.89%, so the current rate is 4.39%. The maximum LTV is 90% and there is a £599 fee – unless you are an existing HSBC current account holder when it is fee free.
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Hi elh_2009. There are many factors that dictate what your outgoings could be including your mortgage repayment, bills, maintenance etc..

You should check with your lender on what the monthly outlay will be for repayment depending on the size of your deposit.

So based a loan value of 90% at about 4.5% could be around £600 per month. Your bill payments depends entirely on the area, including your band of council tax. You should be able to get a rough estimate based on what you are using currently in your household. Don't forget about transport/commute cost if that's also a concern.

You legal fees could be up to £1K - £2K including searches. Obviously a higher valued property - then don't forget stamp duty. New builds will also have maintenance and this could be up to £2K per annum in London.

You would also need to factor in refurbishment costs. Depends on your taste. :) Could be £6K to do up bathroom and kitchen.
 
Edrof said:
I added more to my post.

I'm sure I read that 100% mortgages are back on the market now. Your 10% should be enough, although you must go to your bank's web site and have a poke around to confirm what deals they offer. It's been a long time since I paid bills on a one-bedroomed place, so I can't really give you an estimate, sorry.
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Yeah ive had a quick look around the website, ive got a idea of the repayments, what about other fees? are there agent fees ect? so ontop of my deposit id need another k or 2?
 
A pretty handy rule here is the bigger a deposit you can put down, the better a deal you will get on your mortgage. The lenders are taking less of a risk against potentially falling prices therefore can offer more favourable rates.
I scraped together my life savings and with a wee top up from my mum (thanks mum!) I managed a 25% deposit. That got me 2.19% a ove base rate for life and no penalty clauses for early repayment. I shouldn't have to shop around for a better rate for a long time.
I appreciate many cant put together much of a deposit but scrimp n save everything you can as it pays buckets in the long run.
 
chameleon said:
A pretty handy rule here is the bigger a deposit you can put down, the better a deal you will get on your mortgage. The lenders are taking less of a risk against potentially falling prices therefore can offer more favourable rates.
I scraped together my life savings and with a wee top up from my mum (thanks mum!) I managed a 25% deposit. That got me 2.19% a ove base rate for life and no penalty clauses for early repayment. I shouldn't have to shop around for a better rate for a long time.
I appreciate many cant put together much of a deposit but scrimp n save everything you can as it pays buckets in the long run.
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who was that with? I'm looking for a simular deal atm.

Council tax ~£120. Elec and Gas and Water total around £70 PCM

Just need to add tv,phone and internet to that.
 
In terms of advice, we had a long and very informative meeting with a Halifax mortgage advisor that laid out all the steps we needed to go through and everything. In contrast Nationwide just ran an online calculator and gave us an estimated amount, something we could have done online, and Natwest thought we were thereto open a joint account.

I'd give your local Halifax a call for a chat with their mortgage advisor. There's no pressure to get a mortgage from them, they will just use your payslips and other credit details to look at the options available, and guide you through what the process is.
 
Was going to detail my utility bills but I'm in a smallish town in NI with limited providers and you're looking in London... I'm sure you'll get an average cost of living with a bit of searching. Hope you get sorted, it's a great feeling getting your first place!
 
im gonna try and set something up with the bank this week, i done a online calculator thing and i can get 120k, just trying to work our rough monthly bills now to see if i can afford it.
 
My advice is don't get a mortgage with high product fees on the amount you would need to borrow, get one with a slightly higher interest rate and no fees, or much lower fees.

If you work out the cost difference over the course of the mortgage time (i.e. 2 years, 3 years, 5 years) then the high upfront fees are much better on very large mortgages as the fees are static.

If you are getting a mortgage for 100K then you will probably save money by just paying a little more each month and not paying £1K - £2K upfront. You can work out the cost differences based on the Key Fact Illustrations you get, so make sure you review more than one option.

Don't be afraid to use a Mortgage Broker either, but if you do then make sure they are fee-free, and whole of market. They will do a lot of the legwork for you, and can add a bit of weight to your mortgage approval process if you are seeking your first mortgage.
 
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Eulogy said:
My advice is don't get a mortgage with high product fees on the amount you would need to borrow, get one with a slightly higher interest rate and no fees, or much lower fees.

If you work out the cost difference over the course of the mortgage time (i.e. 2 years, 3 years, 5 years) then the high upfront fees are much better on very large mortgages as the fees are static.

If you are getting a mortgage for 100K then you will probably save money by just paying a little more each month and not paying £1K - £2K upfront. You can work out the cost differences based on the Key Fact Illustrations you get, so make sure you review more than one option.

Don't be afraid to use a Mortgage Broker either, but if you do then make sure they are fee-free, and whole of market. They will do a lot of the legwork for you, and can add a bit of weight to your mortgage approval process if you are seeking your first mortgage.
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Thats confused me a bit but thanks anyway lol. I really have no idea where to start.
 
Also im basing this on the new salary i will be on starting from next month, can i set something up now or do i have to wait until i am actually on it?
 
They will almost certainly want several previous payslips as they want proof of what you are/have been earning. Not what you are going to be.
I must admit to using the comparison websites such as moneysupermarket etc to see what deals there are out there. That's how I found the one I have with ING Direct (now taken over by Barclays).
I did pay about £1100 up front but think it was worth it to get a good rate for life and no strings attached.
 
Ok well ive got another month or two until i get my first pay slip at the new rate, guess i'll wait til then and use the time to try save a bit more.
 
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