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Can someone talk me through buying a house. Don't know where to start!

13 replies

Longlostpals · 02/10/2018 11:23

So DP and I currently rent. We thought it would take years to save up a deposit to buy our family home but a relative of his very sadly died last year and we've just discovered that he's been left enough money for the deposit. We had a meeting with the bank a while ago who gave us a rough estimate of the amount of mortgage we would be likely to be offered. So now what? Do I set up meetings with mortgage companies/banks to see what our options are? If a house is advertised at a certain price is is likely to go for more or less? What other costs do we need to factor in? When is a good time of year to buy? How long does the whole process take? How do we work it out with our rental property (we can't be homeless for any period of time as we have 2 kids and no family nearby to stay with)?

OP posts:
dontticklethetoad · 02/10/2018 11:25

Get yourself a mortgage broker, who will help arrange your mortgage in principle. Once you have that, you can start looking at properties.

Foxyloxy1plus1 · 02/10/2018 11:48

You need to arrange a mortgage in principle, have a look at Rightmove etc to see what sort of property you could buy for the deposit and mortgage you will have. You could also get on the books of agents local to the areas you want.

Other costs would be solicitor’s fees, surveyors fees, removal costs. I’d suggest getting a decent survey, particularly if you find an older style house.

Lazybonita · 02/10/2018 11:57

You need to factor in moving costs, solicitor, survey and searches and stamp duty. In my area I would never offer asking price as a starting offer, you can always up your offer, it is much harder to reduce it. I would always look at what houses in your area go for so you have a rough idea going in. Do not trust the estate agent. In my opinion it is always worth stumping up for a good solicitor, don’t use one suggested by the vendor/estate agent. Get your mortgage in place in principle and you will be in a strong position as you have nothing to sell so not in a chain.

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DontCallMeCharlotte · 02/10/2018 12:08

The usual notice period for tenancies is two months (depending on what sort of tenancy you have) but don't give notice until after you've exchanged Contracts. It means you will have another two months before you complete but at least you'll still have a home!

You could complete and move earlier but you'd still have to pay the rent.

Also, agree with getting your mortgage offer in principle which will make you a very attractive buyer.

Don't think there's much to be said about what time to buy. Properties look better on a sunny summer's day but if you're looking in the winter, you'll see it at its "worst" and you can decide if you're happy with it.

If the price is over £300K, there may be stamp duty to pay. www.stampdutycalculator.org.uk/stamp-duty-first-time-buyers.htm

Longlostpals · 03/10/2018 08:47

How long is the whole process likely to take? (Or is that a 'how long is a piece of string' type question)

OP posts:
A580Hojas · 03/10/2018 08:56

Are you likely to be looking at "first time buyer" type properties, or are you looking for a larger house?

The longer the chain of sales (ie. you are number 1 in the chain because you are buying something but not selling, if the people you are buying from are selling their property to buy another one then they are number 2 and the people they are buying from is number 3 etc) the slower the process is usually.

As FTBs with nothing to sell you are in a good negotiating position. By which I mean, if you offer on a house and another buyer who has a property to sell makes the same or even slightly higher offer, the vendor should look on your offer more favourably and decide to sell to you because you have no sale that could go wrong.

I think you need to start with getting a definite idea of what mortgage you could get, rather than just a rough idea. A few thousand here or there could make all the difference.

Babdoc · 03/10/2018 08:58

OP, the system for house buying (and indeed the entire legal system) is very different in England and Scotland- check that any advice people give you is for your correct location. For example, in Scotland, properties are sold for “offers over”, and you usually have to offer a lot higher. In Edinburgh, that may be £40,000 higher. Offers are made as sealed bids, you don’t get a chance to haggle, and if your offer is accepted you’re committed to buy.
In England, there is an asking price, which is just a basis for negotiation. Buyers often start with a lower offer and haggle upwards. Deals can fall through or be gazumped right up until exchange of contracts.
In England, estate agents handle much of the process. In Scotland it’s your solicitor.
Good luck with your purchase - it’s an exciting (and nail biting) time!

specialsubject · 03/10/2018 09:22

england - rolling tenancy means one month notice from you. do not give notice until exchange. have a bit of an overlap and save.money by not completing/moving on a Friday if possible.

namechangedbutneedadvice · 03/10/2018 09:23

Watching...

Kr1stina · 03/10/2018 09:33

If you live in England - Don’t buy anything without getting a survey. This means that you pay a chartered surveyor to do a survey for YOU, not the mortgage company . You need to know that it’s structurally sound and what repairs might be needed.

Costs - you’ll need buildings and contents insurance.

Ask for a quote for legal fees. We just bought a flat and got a fixed price quote which they stuck to.

Do you have any DIY skills ?

How much notice do you need to give your landlord ?

overagain · 03/10/2018 09:34

First things first, get a mortgage advisor/ broker. Go for a "whole of market" broker NOT one attached to an estate agents (such as countrywide) as they only deal with a selection of mortgage providers, meaning you may not get the best deal available to you. Personally I recommend L&C (London and Country) as they are free, impartial and whole of mortgage. Some people don't like them as you do it all over the phone and via email, but I like that aspect too.

Once you know how much you can borrow you know how much you can spend - mortgage amount + deposit - fees (solicitors, surveyors, moving costs etc) = max house price. I always recommend leaving a contingency of a few thousand pounds in case you move in to your new house and something goes wrong, like the boiler breaking or a leak.

Once you have your budget get looking on rightmove (other websites are available and you can also go direct to estate agents). Call estate agents and book viewings. Depending on your area you may have to move fast. Where I am good houses go under offer within a week.

Get quotes off local conveyancing solicitors and choose one. Remember a quote is based on 'average costs' and if you start a purchase and pull out you'll have to pay for the work already done and then for the full work on the next house.

Whilst looking for house make a list of 'must haves' - these are things you cannot change about a house or changing would be financially prohibitive e.g. area, parking, number of bedrooms and size of rooms. Agree the condition of the property you want and how much work you are willing to do - do you want a finished house or are you able to take on a renovation or would you do a new bathroom but no electrics? Have a list of nice to haves - an extra room, off road parking (whatever is important to you but not necessarily a deal breaker).

View houses. Spend time on viewings. This will be the biggest purchase you make (possibly forever). It should be afforded more time and consideration than buying shoes, but most people don't. If you are in a fast paced market it may be the only viewing you get. Check behind the sofa, open the wardrobes (is there mould, are they concealing a chimney breast and are actually unusable). Flush the toilet and turn on the shower (check for noises and water pressure). How old is the boiler? When was it last serviced? How old are the windows, any condensation between the panes? Do they have locks? Is the garden boggy? Any signs of mould or damp? Does the floor seem even, are the door frames level? Look beyond the décor and the furniture. Is there plumbing for a washer, space for a dryer (again, what is important to you?). Go across the road and to the back of the garden and look at the roof, is it good condition, are there missing tiles.

Go with your gut. Unless you have a very limited budget and you need to buy the 'best available' then you should want the house, you should feel like it's going to be home.

Make an offer. The offer should be how much you think it is worth (to you and in the current market/ compared to other houses in the immediate 1/4 mile area), how much work needs doing and whether the asking price has taken this in to consideration. If it is popular and a fast market make your offer competitive and a level you are comfortable with but do not expect to be asked to increase it. If the property has been on a while or the market in your area is slow, you can go in low and work up if you like. Whether a house goes for under or over asking is dependent on a number of factors, mainly the market in your area.

Offers are made to the estate agent. Expect them to see copies of ID, evidence of the mortgage in principle and they will very strongly try and persuade you to see their mortgage broker - you can say no and they cannot refuse to put your offer forward (tell them you know that is against the law if they suggest that).

Once the offer is submitted sit on your hands and wait. Continue to look for and view other properties - you might miss a gem whilst waiting to hear.

If the offer is rejected but the house is still on offer decide if you want to increase your offer.

Once an offer is accepted give the solicitor details to the estate agents. Ask for the property to be removed from the market (it should go 'under offer' 'sold subject to contract' or STC).

Call your solicitor and advise them you have had an offer accepted but advise them not to start work.

Get a survey - look on RICS or RCSP to find one in your area. Depending on the age of the house you'll want either a full structural or homebuyers survey. Once the survey is back and you are happy to proceed then instruct your solicitor to start work (but get the survey in fast, within a week if possible or the sellers may think you are messing them around). Do not rely on the mortgage valuation survey. The survey can be used to renegotiate the price, but the seller can refuse and it would not be reasonable to ask them to reduce it for something you could reasonably expect to see on a viewing (e.g. boiler is old or roof has missing tiles) as your offer should have reflected this.

Whilst doing this, complete your mortgage application - the broker will tell you how. You'll likely need three months bank statements and ID.

The conveyancing process takes an average of 12 weeks, but is very dependent on how fast your and the seller are at responding to requests, how long the mortgage application takes and how many people are in the chain (the chain is you, your seller, who they are buying off and so on, until the end, which is either a new build or vacant house).

Check in with oyour solicitor frequently, weekly or more depending on wherein the process you are.

You can withdraw from the purchase at any time up to exchange but incur costs of solicitor fees, mortgage application fees, searches and survey fees depending on exactly where in the process you are.

As a first time buyer in rented do not hand your notice in until you have exchanged contracts. Exchange often doesn't happen when you think it will and you could be homeless.

Get over to the moneysavingexpert forum for more info!

overagain · 03/10/2018 09:35

Sorry. that was long. And assumes you are in England or wales!

FunSponges · 03/10/2018 09:41

Call London and Country. A mortgage broker. They were fab and could search the whole of the market unlike a bank. They don't charge. Don't use the mortgage broker from the EAs, they just give you a hard sell because they make money on you using their services.

When we bought our house, we also sold so fees on top of deposit were 5k but yours would be lower because you are not selling.

Stamp duty
Conveyancing services
Mortgage arrangement fee (we added this to the mortgage)
Moving costs
Survey

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