Just Had Our Offer On A Property Accepted!, So It Begins...

[Fizz]

Right..

Nafisa (wife) and I have seen a property and the place was just what we wanted.

Placed an offer today which has been accepted! Now I need to find me a mortgage...

Fo those of you who have bought properties.. any advice?

Ive got a couple of contact numbers for brokers (one of which i have already spoken to and is going to get back to me). he reckons that the mortgage we are after shouldnt be a problem as its 3.4 x our combined salary.

We would need to put down a min 5% deposit which we should be able to get together through one way or another and then its on with the survey report etc.

I have been told there there are different types.. can anyone shed any light on that in simple terms?

Cheers in advance..

Fizz

[GIDDLEPIN]

That's brilliant Fizz (and Nafisa )

[Carrera_C]

Congratulations, I've just got my first place as well.

Found it pretty easy to just go to one of these mortgage advisers that checks lots of different companies mortgage rates (One I used was countrywide estate agents). They will also tell you what all the different options are. Best thing is, there's no obligation to use them for the mortgage, so once they've told you what's what, you can shop around yourself if you wish. Oh, and they can also organise the survey as well.

Best of luck.

[Fizz]

That's brilliant Fizz (and Nafisa )

It is good news but i am not taking anything for granted till it is all set in stone as i know how these can fall through right at the eleventh hour.

Just speaking to a couple of mortage advisors next and awaiting some calls back etc.

Would it be in my best interest to get a fixed rate mortage for 2 years due to the interest rates being raised all the !Removed! time?

Carrera_C - Congrats to you on your purchase! :)

My wife is a little apprehensive as we are currently living with her mum and the mortage is paid off on the property so no expensive overheads. Now we are looking to get our own place is a little scary for her. Basically she dont want to see all her finances go on the house every month..

[GIDDLEPIN]

If you go for any fixed rate mortgage (a good adviser will put you right) make sure it is without penalties They can sometimes tie you up after the rate finishes if you don't

[cfc1]

We went with a fixed rate mortgage (3 years i think), that way we know how much we are paying every month, after the lenght of the fixed rate is up we go in for a mortgage review and see what options are available again.

Stay clear of Endownment mortages at the moment, because if there is a shortfall at the end of the term you could find yourself in trouble.

[Flat Pack]

Congrats and good luck :)

Mortgage advisors can be very useful, but at the same time you do need to be a bit careful. The ones tied to estate agents tend to have a panel of 'preferred' lenders that they use (and get comission from). They don't check the whole market, just their panel so you might not get the best possible deal. If you know what you want (fixed / variable rate, length of discounted rate, tie in periods etc) then you can probably find the best deal yourself on the internet these days, lots of comparison sites out there! When I bought this place I ended up with a fixed rate from Britannia for 2 years that was comfortably better than anything the Countrywide advisor could come up with.

The really big advantage of a fixed rate mortgage is that you know what you'll be paying, I found that really useful to help budget when I'd just moved in. I expect the lenders have a pretty good idea what interest rates are going to do so they'll build in any expected rises into the rate they offer you though.

Hope it all works out :)

[chris202]

Countrywide i believe too and then Northern Rock :) Congrats ;)

[Fizz]

Flat Pack -

Firstly thanks for the info, it was very informative. :)

Ideally we would be after a fixed rate for minimum 2 years with no tie in periods so we could remortgage elsewhere should we want to. Probably looking at about 25 years with minimum monthly payments of about £600/700 per month.

The chap I have contacted seems to be an independant advisor but I shall confirm this the next time we speak. I do remember him mentioning that he had good deals in these past with Northern Rock and a couple of other people mentioned them.

[Andie_M]

awww congrats and best of luck with the mortgage! :)

i'm so glad i still live with the 'rents and intend to keep it that way for a few years :)

[Fizz]

Im 27.. i reckon its about time i moved out..

Although it has done me well... I wouldnt have been able to afford the cars in my signature if i had my own place... :)

[Kev Mc]

Great stuff, congratulations both of you

[marvinGT4]

Good luck to both of you

Nobody seems to have mentioned a capped rate where the interest cant go up but can come down if they drop the rates. The capped interest rate is ofen slightly more than a fixed rate.but there isnt too much in it.

at least that way you will know the maximum you will have to pay.and you will be quids in if interest rates go down.

[Demonic Angel]

Congratulations Fizz & Nafisa!

It is a little daunting getting on the property ladder, but a house is the best investment you can make. Really chuffed for you both buddy!

[Devil-ish]

and then the fun part!!!.........Furniture, decorating, BBQ!!!!!!!!!!!!!!!!!!!! Housewarming

Congrats to both of you

[stevetubbyturbo]

Nice one Fizz

As for mortgages there are loads my personal opinion is a fixed rate if you went for a 2 year fixed it would be a lower intrest rate than a 5 year fixed but some times its better to get a 5 year fixed i found it was only about £15-£30 a month (depending on lender)extra than a 2 year fixed but make sure if you do go for a fixed there is no tie in after the fixed rate period.

Although a 2 year fixed may look nice and cheap at the time after 2 years your on the bank of england base rate + what the lender adds on which if the base rate goes up you could find yourself in a hole where with a 5 year fixed you have 5 years you know you will paying X amount of pounds.

There are also capped where you pay the bank of england base rate but it rises to the cap you pay no more.

Then there are Trackers which just track the bank of england base rate.

I wouldn't go for a cash back as there is no such thing as a free lunch.

All the best mate

[Al J]

Congratulations to you both.

As someone who has just finished paying off their mortgage, I'd say it's a great feeling although I realise that you're at the other end of the ladder at the mo! :P

The only bits of advice I'd give are fairly obvious really. Keep up your payments and realistic property/contents insurance at all costs. There were times in the past when I found it hard and desperately needed money for other things but at least I knew I had the security of a roof over my head.

[Gareth B]

Congratulations to you both and good luck with the purchase.

Some good advice already, I am on my 4th mortgage and have always gone for a fixed rate due to the certainty of the payments they provide. Saying that capped mortgages can also give you that but I have never looked into them thoroughly.

Don't be put off to be tied in for longer than 2 years. Interest rates are rising and will most probably continue to rise for many years to come. ( They have been at their lowest rate now for some years and the only way is up!)

I understand people being concerned about redemption fees etc but unless you are planning to move in 2 years time i would recommend getting the longest fixed rate period you can afford. Even if you did decide to move most mortgages are transferable (but check) and can be carried over to your new property.

Just think, in 2 years time you will come out of your fixed rate mortgage and go on to the variable rate (whatever it may be by then - probably nearer 8% 0r more). You will then have to re-negotiate a new fixed rate mortgage to keep your payments down but will ultimately end up paying a higher rate then with the added temptation of taking on a higher mortgage for those "home improvements" and taking it over another 25 years. (sometimes unavoidable)

Sorry waffling - On another note, watch out for the upfront fees they charge on lots of mortgages which the temtation is to add these over the term of the mortgage which you end up paying a shed load of interest on. A mortgage with no upfront fees even if at a slightly higher rate could ultimately cost you less over time.

It is a bit of a minefield but there is plenty of help and advice out there, you just need to be solid on your budget and not be temted to stretch yourself because I assure you that has a knock on effect next time you come to re-mortgage.

As far as building surveys are concerned i have only ever had a valuation survey where they just look at the general condition of the property (usually free from the mortgage company) and been lucky not to have found anything sinister. This is a risk but a calculated one depending on the type,age and general condition of a property. For complete piece of mind a buildings survey which checks the stuctural integrity, services (wiring etc) would cost in the region of £600.

All the best in whatever you decide and good luck for the future

Gareth

[Jones~32]

Nice one Fizzy!

[Tardis]

Glad to hear you've found the right place. I'd suggest you start by reading the independent advice on the money saving expert website. I've not used the mortgage advice but lots of the other sections are excellent.

I had the pleasure :censor: of starting my mortgage during the '80s and still remember the day that the interest rate (briefly) hit 15%. That's pretty unlikely now the Government don't meddle in the interest rates for political reasons, but my personal experience was that a capped rate was very reassuring whilst a colleague had an early breakdown

For the next steps, continually pester your agent and solicitor and ensure that everyone communicates well throughout. Most failures are a result of poor communication and it's in your interest to make that part work.

[SMW]

I have a Virgin one account mortgage and find it excellent. You pay inetest only based on your mortgage balance and it's calculated daily (this is crucial). You choose the capital you pay and the more you pay the less the interest rate is. Best bit is you can borrow up to your mortgage limit again at any time at mortgage interest rate (say to buy a car , ahem). Too much to explain here really but worth a look at their site I think.

Oh and congrats ! (wish my mortgage was only £700 a month :D )

Steve

[Blue84]

Congrats, hope it all goes well for you both :)

[ZeroBlade]

Congrats on the hosue Fizzy ;)

You've already bought the house so may be a little late but...

When i was lookin for one, the first thing I did was take the free mortgage advice from the estate agency (even though I knew i wasnt going with them!).

They're usualyl dead helpful, and whilst they do have selective panel it's pretty broad. Just tell them your circumstances and they'll wack it all into the computer which lists a load of mortgage companies and their interest rates etc. It was dead handy cos I was able to see at a glance the best type of mortgage that would work for me.

I'm guessing your planning on keeping the house so a long term one is probs best for you tho!

-Z

[Fizz]

Salaam Z,

Thanks for that input, i have already contacted and spoken to 3 different mortgage brokers and have settled with one of them.

He has offered me the best advice and spoke the most sense from all of them and also has access to the full market and not just a selected panal of Mortgage lenders.

SMW - I wish i had a job to enable me to pay more than £700 per month.. infact i have been told about Cheltenham and Gloucester who offer 5.09% for the 1st year, 5.55% for the second and 5.99% for the 3rd year. Then i can remortgage elsewhere at the end of the 3 years. :)