Idiots guide to being a First Time Buyer please!

[PyongyangKipperbang]

My DD asked my advice earlier today as her and her partner are looking to buy soon. But they dont really know how to go about it! I am in the only house I have ever bought, 26 years later and things have changed a lot since then. When this(3 ned terraced) house got bought you could get 125% mortgages for example and it cost 40k!

So I suggested first thing was to see a mortgage broker (they have a deposit saved, all their own work for which I am very proud of them), to see where they stand in terms of how much they can borrow, repayments, affordability etc and then look at viewings when they have that information. But how to find a decent broker? How to find decent conveyancers? etc

But things like survey fees, conveyancing etc I know nothing about these days as obviously they are a lot more expensive than they were in 1999!

So advice please, figures etc. We are on the East/West Mids border and a good 3 bed with garage and a decent garden comes in at between 180k and 220k.

I will be sending this to DD

I have a great broker but I don’t think you can name businesses on here.

I understand, but could you tell me how you found them? Or maybe name the town if they are local (ish!) to Derby!

The MSE guide is great and pretty much covers all of this 😄Process of buying a house: timeline | MoneySavingExpert

1999 was not long after the complete collapse and huge numbers of repossessions - people were not getting 125% mortgages then.

However

Yes, your dd should absolutely talk to a mortgage advisor.
Not one attached to an estate agent nor one attached to a particular bank or building society. Recommendations come from asking around. When you are at a stage of life when you are oping to buy, you will know other people at the same stage - colleagues, friends from school, friends from University if either of them went, friends from sports teams or whatever hobbies they have.
These days it doesn't have to be someone local - all is done on-line and the meetings are by video call. So recommendations from anyone, anywhere in the country can work.

Alongside that, really getting to know the area, and looking on-line at as many different properties they can.
Start a list / spreadsheet. See what sells quickly and see what hangs on the markets. Get to know prices. Get to know pros and cons around the area. Look at what other people have done to similar style houses, to get an idea of possibilities.
They can register with EAs for alerts, if you are in a fast moving market, but I think things have slowed down a lot from where they were in recent years.

Start to look around actual houses. My dc knew 'on paper' what they thought they wanted, but once they started looking, you could tell 'the feel' was for something else.

What a muppet!! MSE never even crossed my mind!!

Thank you!

We bought in 2023. We got a mortgage in principal, basically tells you how much you could borrow. Then we searched for houses. Once they pick a house and put an offer in, apply for the mortgage. They'll then need a solicitor. It takes a while for the mortgage offer to come back, but once it does everything is then down to the solicitors to sort. You don't necessarily need a broker, we went straight to the bank so can't comment on a broker. I can't remember exactly what solicitors cost us, I want to say around £2000 and I know we paid half up front then the rest later

1999 was not long after the complete collapse and huge numbers of repossessions - people were not getting 125% mortgages then.

Errr....I was there and I can tell you that they were cos we got one!

The house desperately needed a new kitchen and we were offered it, so we took it and used it to pay for the kitchen. It was during the Sub Prime era, which didnt end for another few years (cant remember exactly), there were loads of those schemes about offering consolidation on "lots of unaffordable debts" by basically taking out a second mortgage. It became an official "crisis" in 2007/08 (thank you google).

Thank you for your advice.

Thats really helpful, thank you.

They’ll be able to use a calculator online to work out roughly what they can afford with their budget (decision in principle). Some estate agents want proof of this to book viewings.

And if it’s straightforward e.g. they’re both employed, no unusual circumstances, they could use a a free online mortgage broker like L&C (there are others, I just can’t think of the names!).

You’re best asking friends locally about solicitors I think. Never use the ones recommended by the estate agents.

When I needed a survey I just did a lot of googling/looking at reviews online to get a reputable company. It wasn’t very expensive, I think a few hundred pounds.

The MSE guide is good.

Thank you @EmmaD9

They have done the online calculators and all seem to come out at about the same but while they have a 10%+ deposit, what they have saved will also have to cover their legal and survey costs. They want a full survey (DD works with someone who bought without a full survey and found out a few months later that the roof was basically caving in). I think its more those fees that they want to know about so they can factor them in, and I really cant help them!

Just skim read the MSE guide and it is very detailed and just what they need.

Yes absolutely get a survey. I’ve just checked and mine was 600, a couple of years ago.This included a valuation. I think solicitors was around 1800.

One thing to consider is if anything comes up on the survey, getting quotes from trades to help you negotiate with the sellers. I recall paying £50 or so to a couple of people to have a look ( e.g. at the roof) and give me a written quote.

Oh that is really helpful, thank you!