Mortgage

[neonplanet40]

Viewing my first house on Friday. The whole thing is daunting. I've read loads and laods. Still, it doesn't seem to be enough. So much I don't know!

Anyone else in the process of buying a house this year?

I am viewing a house which states "Offers over 225,000". It has been available since June/July 2016. To me, I think 226! But who knows!

Any advice regarding viewing, mortgages, brokers, conveyencers etc? Or anything else.

I am buying in Scotland which is a little different to England. But I am sure any hard won advice from people who have bought in the past will help.

Thank you

[DanceswithUnix]

View a few houses, you should quite quickly get an idea of what houses in the area are going for and what a given house is worth to you.

[jimbouk]

Buying in Scotland is different so I won't say anything about the process as I don't know it. They do go for more 'fixed price' or 'offers over' than to England when we were comparing various locations.

Viewing - always go twice. Once is to get a feel, second is to see the fine details. Take a camera, notebook, annotate the floor plans. One house we pulled out of just had too much major work to do than we could afford. That bit of damp coming in from the outside wall which had now been treated was a leaking roof, and the electrics had been badly re-done with trunking rather than chased into the walls.

Mortgages, shop around and get what you're comfortable with. I'm a cautious person so got a 5 year fixed term, hasn't paid off yet but things might go crazy in the next couple of years. We had an independent who was very helpful for me as I was first time, but needed some pushing to get the best available mortgage (which wasn't available directly to customers).

Get personal recommendations for surveyors, solicitors, etc if you can. We had two solicitors in the end as the first couldn't process our mortgage for some reason (didn't pay them fortunately). We went fixed cost due to being cautious, but they juggle so many cases they need a lot of chasing when things got tight for time.

As for price, how much have you got and how much of a rush are you in? I assume you've got a mortgage in principle? Zoopla and Rightmove can show sold stuff in the area - doesn't give the actual price of recent sales but drops in value give an indication.

Good luck and have fun!

[Flibb]

We bought our first place in September, down in sunny Kent.
My advice and thoughts

Get as much done up front as possible, including finding a solicitor / surveyor /, get the mortgage in principle. They will go through your finances, and you will need to provide bank statements, they will question any odd payments. We had a gift of a couple of grand, the in-laws had to get statements witnessed to cover this, slightly difficult because they are not local. Keeping things local also helps if you need to sort anything out quick. Our one was also open evenings and Saturdays. They specialised in property and conveyancing, they also communicated well, and used email, the sellers solicitor seemed to like letters and fax.

You should be able to look up the planning history of the property online, this also goes for neighbours. You can look up things like tree preservation orders, flooding risk, airports publish flight corridor maps, etc. Around here flooding and the Gatwick flight corridors are big issues, these type of things you can do a lot of research yourself. We crossed a lot of nice places of the list due to flooding. Old maps can also be handy for seeing what was there in the past, this could include rubbish dumps, coal mines, etc. The local plan (council) will show future development plans, you can also check for what's being applied for at the moment via the planning website. We crossed a place of our list because of planning.

Use an independent mortgage advisor, I looked around myself, the advisor saved us several grand.

Be aware of what amounts of deposit will make a difference to payments. A couple of grand extra deposit made quiet a bit of difference to payments because we dropped to a lower interest rate.

Be familiar with the area, you can alter a house, but its going to cost a lot to move again if your not happy.

Look at places and houses your not necessarily that interested in, it will help with your decision making.

Try and look beyond the decoration, that can be changed.

Maybe get a place that has future potential to be expanded or improved. What have other places in the area done?

Gardening is a pain in the behind, bigger isn't always better.

If your renting be very careful how you handle informing the owner. We had a lot of problems with the estate agent, luckily I had kept emails. With renting you don't want to hand in your notice until you exchange contracts.

Our case was a slightly unusual because the owner was selling to somebody else, they dropped out 4 days before exchanging contracts, and four days before the owner moved to China. We had our offer accepted based on quick completion, luckily we had most of it in place. The major delays were caused by the sellers solicitor not being able to provide
information and certificates, this put our moving date back a month.

[ik9000]

Don't offer the asking price. You can always increase your offer if they say no. If it's been on for ages it's a sign they've overpriced it anyway. As with anything work out how much you are prepared to pay for it - what is its value to you. That is a personal matter, and no-one else can tell you what you ought to offer. We offered substantially below the AP on a house and nearly ended up getting it (they rejected the offer at first but then rang us back a month later asking us to re-make the offer and they would accept. By that point we had moved on to looking in a different (nicer) area. Their loss.) First time buyer, no chain is worth a discount over someone stuck in a chain. Trust me - they will quickly come back to you even with a lower bid once a chain needs unlocking.

My other tip is pay for your own full building survey - separate from the bank valuation. A report for your use in negotiating, and it doesn't have to be shared with the bank. They look at whether they will be willing to lend money on the property. Your surveyor will look at things relevant to you (but not relevant to the bank). Spots a heck of a lot you might not otherwise see yourself. Believe me!

[Dashers]

I'm in England, but I suspect it's pretty much the same in all countries apart from the detail of the legal side of things.

Buying a house is expensive even if you ignore the house-price itself. Surveys, solicitor fees and stamp duty are all killers. You'll have to pay for that with cash, the mortgage won't cover those costs as there is nothing to secure them against. So first thing first, work out what you can afford. Online calculators can give you a rough idea, but going into a bank means you can get advise and a breakdown of costs.

Remember, interests can go up (and at this point, unlikely to go down). Work out what your repayments will be if interest rates are at 5 or 6%. Also bear in mind, you're likely to increase your earning power over the next 5 years. There are other costs to home ownership that you may or may not already be exposed to (bills, council tax etc) - and of course, the rainy day jar for when your boiler goes pop in the middle of winter and you need to do some expensive maintenance.

There's the consideration of what to do if you lose your job etc. Banks encourage (and try and flog you) payment protection insurance. (PPI, you may have heard of it). This is probably useful as a first-time buyer because your income and assets are probably less stable, but on the flip side, you might have less to lose. I never got any on my first house because I figured in the unlikely event that I couldn't pay my mortgage and my home was repossessed then I could move back in with the parents.

- Offers over X amount means the buyers aren't interested in any offers below. But if nobody is making offers and you come along with one, they might change their mind! Depends on how long the property has been on the market and how desperate they are to shift it.

- Don't skimp on a solicitor. There are online/mass ones that do things cheaply, but frankly in my experience they just cause problems. Put aside some money for somebody who is going to put in the time and cover everything off, especially as it's your first time.

Solicitors will take care of all the things about making sure all proper guarantees are in-place, and that the property can actually be sold etc.

- Surveys tend to come in different varieties. If you're buying a falling apart building with the view to restore it, you might want to go for a full structural survey, which is invasive and expensive. Otherwise, go for the "middle" one, they'll nose around the house but not start peeling back the skin to look under things. It'll identify things like damp, wonky roofs and what not. If you're buying new/off-plan, it's still worth getting a light survey done.

- Radon. Check the HSE website on Radon to see if you're in a high-risk area, if you are, seek further advise on the best way to deal with that.

There are various deals out there that the government does to "help to buy" for first time buyers, it's worth looking into those and see if they would be sensible for you.

Shop around for everything. Just because somebody bundles a product with their service, doesn't mean it's the cheapest way to do it (e.g. insurance with your bank will probably be silly expensive). And beware of false economies - cheap things are usually cheap for a reason.

I'd echo the advise above about viewing multiple times. If you like it, go and visit again, preferably with a parent or somebody impartial and with a bit of experience. Identify potential issues. My first house was a fixer-upper, and I went back with a building firm to quote on all the work that would need to be done.

[neonplanet40]

Thanks for your advice so far folks.

We already both have a Help 2 Buy ISA which we will use and we have put aside money separate from the deposit to cover fees for conveyancer, mortgage fees, stamp duty etc.

Scotland sellers have to provide a home report to prospective buyers. This current house was built 2004. Garage conversion and re-melled layout circa 2015.

The only thing it picked up on the property was:

"Main walls
Repair category 2
A crack was noted upon the render (gable end) immediately adjacent to the outer
door. Remedial repairs should now be carried out and it would be prudent to
seek advice of a competent tradesperson."

Their categorys are:

Category 3
Urgent repairs or replacement are
needed now. Failure to deal with
them may cause problems to other
parts of the property or cause a
safety hazard. Estimates for repairs
or replacement are needed now.

Category 2
Repairs or replacement requiring
future attention, but estimates are
still advised.

Category 1
No immediate action or repair is
needed.

Everything else is Category 1.


The home report was carried out in June 2016. Having spoken to the agency, the repair has not been carried out because it isn't urgent. It also noted this valuation:

Valuations
Market value in present condition £ 238,000
Market value on completion of essential repairs £ - (Not listed)
Insurance reinstatement value £ 250,000


Thats what we have so far.

[Dashers]

Personally a crack in plaster wouldn't phase me, houses move. I don't think the homebuyer's report will be very detailed though. You might want to up this to a survey to check for damp etc.

Only you can decide whether you think the house is worth the price they are asking. I think it's fairly common for people to put on for a price but have a price in mind below at which they'd accept. I haven't had my eye on the market recently so I don't know if things are moving (and either way, that could be different where you are). I put in a cheeky offer on a house for a laugh a few years ago and to my surprise they accepted it, so I landed up moving!

[Saracen]

Personally a crack in plaster wouldn't phase me, houses move. I don't think the homebuyer's report will be very detailed though. You might want to up this to a survey to check for damp etc.

Only you can decide whether you think the house is worth the price they are asking. I think it's fairly common for people to put on for a price but have a price in mind below at which they'd accept. I haven't had my eye on the market recently so I don't know if things are moving (and either way, that could be different where you are). I put in a cheeky offer on a house for a laugh a few years ago and to my surprise they accepted it, so I landed up moving!

Depends on the crack, and what caused it. It could be anything from settlement, to a major tree root problem, to a sign of subsidence. Also, depending on the crack, where it is, how big it is, how long it's been there, remedial work could vary a lot especially if there's been significant water ingress.

It's probably not significant ..... but .....

[jim]

This is the most helpful thing I read in the whole time I was buying my place: http://www.moneysavingexpert.com/mor...-home-timeline

[neonplanet40]

This is the most helpful thing I read in the whole time I was buying my place: http://www.moneysavingexpert.com/mor...-home-timeline

Yes, read this loads already haha thank you.

And we will definitely get the crack checked in a survey if we were doing to put an offer on it.

Another question.

The house is timber framed. I know most houses are now but I hate it. I always liked brick but it seems they are few and far between now. What are the downsides to timber frame houses? Is it used purely because the builder can make more money (due to less masonry etc)?

[neonplanet40]

Oops meant to say home report was done in June 2016 not 2014! My bad.

[ik9000]

when was it built and where? timber framed devil's in the detail. Done right and with properly protected timbers they're ok. Done in a hurry without proper damp proofing and vapour barriers that can be prone to moisture induced rot. Do not skimp on the survey. full building survey and also consider a structural engineers report.

[ik9000]

timber frame was built because: quick to build, less wet trade and speedier to get the main frame up. Timber is cheaper than brick. Lighter weight so shallower foundations and easier to build on sites with less good ground. Thinner walls so bigger room sizes for a given plot or slightly more units on a site if building several at once. Then the builder also gets easier first fix (running pipes and cables in the walls is easier in timber framed buildings). also the thermal performance of the building is changed. Thermal mass is lower. the building therefore heats and cools rapidly. good for rapid heating in winter and cold quickly at night time in summer but can be more stuffy on a hot summer's day. Modern timber frame are more airtight and better sealed so this is less true these days but they still have inherently lower thermal mass so you lose the heat sink effect of a lot of masonry which old solid stone buildings can offer. lastly timber is more sustainable since with managed forests and no baking/roasting cements or bricks it is generally carbon saving vs heavier forms of construction. that was less of an issue back in the day but more of a driver now.

[mycarsavw]

From someone in 'the trade', two pieces of advice;

Find a local, recommended, Independent Financial Adviser and pick their brains. It may be different in Scotland, but the one I uses has full access to the market and is paid (by the mortgage provider) when you take out the product they recommend. Impartial and free advice.

Find a local, recommended, Solicitor and don't be forced into using the one the Agents tell you you must use. Invariably they'll be a factory firm and you'll never speak to the same person twice. They may be cheap but you'll pay in stress. You can use the Scottish Law Society website to check credentials too. I believe you'll need a solicitor to make an offer on your behalf unless the Scottish laws have changed recently.

As others have said, view lots of similar properties to gauge prices, then view the one you've chosen again and at different times of the day.

[Zak33]

View it at night one day
And in the day time another

and always be prepared to drive an extra 10 minutes to get home/work IF the home is worth it.

Location Location Location only means something in terms of LIVING, not commuting.

a first house NEVER lasts you for ever. Never

So aim for a mortgage that ties you in for as SHORT time as possible so moving (which involves paying off the house and mortgaging on the new) doesn't cost you loads in fees.



and lastly.. but more important than everything else.


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don't buy a dark house