what do I need to know about getting a mortgage?

[RavioliOnToast]

Me and my wonderful DH would like to look into getting a mortgage. We are both first time buyers.

We are thinking about going to an independent advisor for this? Are there any alternatives or is this what you'd recommend?

In terms of a deposit, we have a bit saved but we're thinking about maybe getting a loan to bump up the deposit, we'd pay less on a loan overall. Can a loan be used for this? We'd only need 5/6 grand.

Any other little hints and tips about buying houses? What to look for when viewing. What to change when going into a new property? (Check Windows and doors etc)

I want to go into this with my eyes wide open and would like some real experiences and advice.

Thanks

When you're viewing- ask what their annual fuel bill is. Make sure the house isn't exposed to north winds. Its a gem if it has a large wall that gets the sun, or if the garden faces south. I wouldn't buy a house underneath power lines or near an electrical transformer - even a small one the size of a shed. Make a list of the things you'd like, and score each property you look at. I got a mortgage from the newly opened branch of Nationwide, (many years ago) - new branches are that much more keen for custom in order to best use their budgets. I'd definitely pay off (and close) the very account, just check the APR. Besides, if you do that & leave it a year, they'll send you £s off voucher to woo you back.

It sounds like a good plan but as people say might be hard to take out the loan of the deposit unless you have a relative who would help out.

In difficult cases we have always found a mortgage broker is useful. They do not charge too much and they know all the various loans around and which are best for different situations.

It depends where you are in the country but it might be worth waiting until after April as there are new stamp duty and other tax rules coming in for landlords which might well mean high prices and few properties until April and perhaps making it easier for people looking just after that in some areas.

Gwenhwyfar - yes, sorry I thought that was obvious! I was replying in relation to someone up thread who asked if you have to have the account open for years to get anything, to clarify that three months is the minimum. The second part of my post did say that if you decide not to buy you still get your money saved & interest but not the bonus.

After speaking to a mortgage broker today, he has told us that my DH could get a mortgage in his sole name, initially it would be spread over 38 years so we have a few years for me to get a steady job that isnt zero hours, and for my credit rating to improve.

The monthly repayment would be £269.25, and is fixed for 2 years at 3.45%

I know on the surface it doesnt seem all that wonderful, however we feel we really need to start somewhere and at least it'd be money invested in us, and not to mention we'd be saving £350 a month in rent which is unbelievable.

How do you lot think it sounds? I love all your advice and I'm so pleased I started this thread :)

I'd say go for it! It pains me renting to think I'm paying off someone else's mortgage. Step on the ladder and you're laughing. Best of luck

This is my thoughts, Bindi it absolutely is not a forever home but its still close enough to DD's school and so cheap! I literally cannot believe the difference. A few years down the line and like I say, we could shorten the term and add me to the mortgage when I have a more stable job. Its just such a big thing to take on, I'm a bit frightened I think

It seems a no brainer, assuming youre paying rent and for all your utiities etc already.

Maybe use the £269 to overpay the mortgage. Then when you come off your fixed rate and mortgages rates have risen you wont take a hit with the increased payments.

You should also make sure your name goes on the house deeds even if youre not on the mortgage (just incase you have to rent it out and CGT comes into play).

What is CGT Sunny

What does being on the house deeds actually mean? So sorry, I'm totally clueless

CGT is capital gains tax.

Being on the deeds means you're listed as an owner. The solicitor will take care of this - you just need to make sure the solicitor is told to do this.

That's brilliant

Thanks

Yes, it sonds really good news and also it's psychologically nicer to own your own place anyway never mind the money and legal side. You said DH so I assume you are married. If you do not go on the deeds then your solicitor should register your matrimonial right to live in the marital home at the Land Registry. That means if your husband decided to sell the house without telling you or mortgage it again the other person would be alerted to your rights and not proceed.

If you are not married then be careful about assets not going into your name as there are more legal risks. It sounds like you are married however.

Yes, Deo we are married.

Is there any difference between being on the deeds and the solicitor informing the land registry?

Is one better/more stable than the other?

It isn't possible to be named on the deeds but not on the mortgage.

Hi,
Even me and DH had gone through a similar situation. I think it would be best for you to arrange a mortgage with a private lender, because that’s what we did. We arranged our mortgage from Private Lends, a private mortgage lender based in Toronto. We really did not have to worry much and everything was arranged pretty easily and now we have even repaid the mortgage. Hope this helped.

You think your rent is high at 650? Bloody hell OP you need to come down my way!!

Hi are you still having problems, I saw some of the answers and I m sure its pretty straight forward