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Pension and mortgage, where to even begin?

(8 Posts)
CurlsLDN Wed 16-Sep-15 08:57:40

Hello! I'd really really appreciate some advice from you wise bunch of vipers, as I have two big money decisions on my horizon, and no idea where to start!

1. Pensions - I've only ever worked in tiny companies so have never had a company pension. It's high time I got this sorted out, so how do I go about setting up a pension? Do I need to speak to an IFA? How do I find one?

2. Mortgage - after 12 years of renting in London we have now moved to renting in the country, with a plan that we'll save the difference from the reduced living costs and finally get a deposit together. We are hoping to save £10-15k for a 5% deposit, I estimate this will take around 12 months.
However, my parents have now offered to loan us the deposit. This is attractive as we believe that mortgage repayments and parent repayments would cost less than or equal to our current rent. (we've always been able to easily afford a theoretical mortgage, just unable to save the deposit as our rent was so much in London)
So, if we were to take my parents up on the loan idea, what's our next step? Do we find a house we like then apply for a mortgage, or do we speak to a mortgage advisor first to get an idea of the numbers?
I'd also like to get advice on whether we are better off saving our own deposit, or taking my parents up on the loan, whether there's financial drawbacks to either.

Thankyou so much for any advice you can give on either subject, I feel totally lost but just want to provide a secure future for our family!

PurpleWithRed Wed 16-Sep-15 09:11:49

Check out Martins Money Tips website, which is full of excellent advice of this sort. www.moneysavingexpert.com

1. See an IFA. Ask around your friends/family or just take pot luck on the check-a-professional website. Ideally talk to a couple on the phone and go with the one you feel most comfortable with.

2. Not so sure as those days are gone for me but I'd start with talking to mortgage advisers/banks/local providers to see how much you can borrow and to get advice on the full costs inc legal/stamp duty/moving etc

atticusclaw2 Wed 16-Sep-15 09:15:27

The mortgage application process takes a fair amount of time and so I'd get the ball rolling on that asap, certainly in terms of finding out how much they will lend you. No point looking at houses until you know what money you have available to spend.

CurlsLDN Wed 16-Sep-15 10:49:02

Thankyou both.

So, regarding the mortgage, do i speak to my bank? Would i contact multiple mortgage advisers or just one? How do i find one of those?

atticusclaw2 Wed 16-Sep-15 11:11:40

Go onto the moneysavingexpert website, find the top deals at the moment from the list and then contact those banks.

19lottie82 Wed 16-Sep-15 11:23:26

Banks won't accept a loan as a deposit (even if from family). It must be a gift and your parents will be asked to write a legally binding letter, stating this.

CurlsLDN Wed 16-Sep-15 12:02:46

That's interesting 19lottie, thankyou, I didn't know that

19lottie82 Wed 16-Sep-15 22:12:01

No problem. It kind of makes sense if you think about it. Basically a loan means your parents would become a party of interest in regards to the house. If the bank accepted that your parents had "lent" you money towards the house, it could become very messy, legally, if they had to repossess and your parents then tried to claim part of the property.

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