Hello there

My husband and I are ready to enter the housing market and try to become home owners, but I haven't got a clue how to go about it.

Do you need to sort out a mortgage first?
Who do you speak to? A bank, building society or an independent person.

Do you do that before you look at houses?

I know roughly where we want to live and roughly how much, I don't know how to get started.

Could somebody give me the Ladybird Guide to being a grown up please? Or point me in the direction of a website that explains it all?

Thanks

You need to have a good look around the mortgage market to see what deals are on offer.
Watch out for expensive set up fees and deals which would cost a fortune to get out of.
Moneysupermarket.com has a page which compares different motgages so you can get some idea of who is offering what. You will then need to talk to the bank/building society and if you think it is right for you, they will take your details and agree a mortgage amount ''in principle''.

This means that they think you are worth lending to, providing that the property you choose is worth the money.

With this in place, you are in position to start looking for properties with estate agents. Estate agents will also try to sell you mortgage services, but don't be pushed into it if you don't like it.

Don't be shy of asking questions! We all had to start somewhere and it is a big, long term commitment which could cost you thousands of pounds extra over the years if not done right.

Feel free to pm me if you have any specific question.
Best of luck.

Hello there

My husband and I are ready to enter the housing market and try to become home owners, but I haven't got a clue how to go about it.

Do you need to sort out a mortgage first?
Who do you speak to? A bank, building society or an independent person.

Do you do that before you look at houses?

I know roughly where we want to live and roughly how much, I don't know how to get started.

Could somebody give me the Ladybird Guide to being a grown up please? Or point me in the direction of a website that explains it all?

Thanks

I would advise that it is a good idea to find a mortgage first to make sure you can get one. You can get a mortgage promise from a lender which states that you can borrow up to a stated amount and subject to a valuation and confirmation of income you know that the lender will give you a mortgage.
The banks only promote their own products and do not research the market to find you the most suitable mortgage for your circumstances which is what a whole of market mortgage broker would do for you taking the time to explain all the various mortgage options.

I'd say go to your own bank and sit down with their mortage adviser and read all the leaflets they give you. They know your financial history very well and will tell you how much they will lend you and what price of house you can look at. You can then tell estate agents you've got a mortgage sorted and you look like a serious buyer rather than a timewaster.

You can go and ask other mortgage lenders later on - where you may get a better deal. But that's where I'd start if I were you.

Thank you for your help! I've had a look on Money Supermarket and do not have a clue what all the different types of mortgages are, what they mean or what the benefits are. If I go to an independent mortgage advisor can they talk me through it? How much to they charge? And how do I find one?

If you have no clue what you are doing (like I didn't!) I would definately advise finding a fully independant mortgage advisor.

They can then come over, sit down with you can talk you through the whole process. They can also help sort everything out for you, including insurances etc and generally make the whole process easier.

Our advisor didn't charge us a penny, as he gets a commission from the bank.

You can start looking straight away! The estate agents can help you with the process too - they will be able to explain all about getting surveys done etc.

I found the whole process to quite complicated and frustrating, not to mention VERY expensive. But ultimately hugely worth it!

I'm in a similar situation to glamazon.......

I really want to get started with looking for a house but is it really as stressful as it sounds???? Also, how long does the process take from looking to actually moving in - approximately?

One other thing that confuses me is that I've read that you need to set up building/content insurance before the contracts are exchanged? Is this true because how can you set up insurance on a property that isn't actually yours at that time?? I'm hoping we can set that up once we move in.

I want the process to be more exciting and fun than stressful but here's hoping.......

Yes it is as stressful as it sounds (but very worth it and it's only temp stress!) and it can take weeks to months, depending on loads of factors.

I would suppose finding a place advertised with 'no chain' or a vacant property might be fastest.

Yes you do have to have buildings insurance in place as it is necessary for the mortgage - if you have an IFA (indepentant financial advisor) they can explain it all and help you out with everything.

Can't stress enough how brilliant and helpful our IFA has been over the last couple of years.

don't forget that you are likely to need a significant deposit these days. Probably something in the order of 20%. Add stamp duty and the cost of solicitors, removals etc. For a house priced at £100K, you'll probably need £20,000 deposit and £5k for all the other bits...

If you have less than 10% deposit plus money for the other bits I wouldn't even try to be honest....sorry to be the bearer of bad news, but lending guidelines have changed a lot.

Ive just bought a house, so this is up to date information.

First of all you will need 10% deposit but you will benefit more with a 15% deposit.
So if you are looking to buy a house for 100k you will need 10k.

Speak to an Independant mortgage advisor that looks at all the mortgages on offer, that way he can find you the cheapest deal.

He will explain everything to you and wont charge you throughout the whole process as the mortgage company pays him if/when you buy a house. Go and see a mortgage advisor before you do anything, then you know how much you can borrow.

When going to see your mortgage advisor he will give you a mortgage certificate giving an ammount you can lend and by what lender (this is not binding in any way). Estate agents usually like to know you have one of these before looking around properties. You will need this to make an offer on a house also.

If you are buying a house at say 100k you will need the deposit and around £2,000 in fees (although most of this can be added to the loan/mortgage) and then however much it will cost you to move.

Yes it is stressfull but its a great step to make. In my experience when it comes to going through with a sale, its always longer than you expect. Id say around 2-3 months from the day your offer is accepted.

When you apply for the mortgage it can take a month for them just to do all their checks on you and your partners money situation and income.

Goodluck!

Again, thank you! Also glad to know I'm not the only one who doesn't understand. :) I have got a recommendation for an independent mortgage advisor today so I'll be ringing him this week.

All this advice is spot on, pity mortgage advisors don't make it sound so simple. one other thing, there are loads of different mortgages on the market as has been said, just don't even consider an endowment mortgage. I had one, got £3k back for it being mis-sold by a lass who contracted to the Halifax, the mortgage has been paid off now but I'm stuck with the repayment unless I cash it in for a fraction of it's value. I'm using it as a life assurance now but instead of the £32500 I was told to expect, it will be nearer £25000.
Just avoid endowment mortgages.
If I was to suggest a solicitor, well they are all robdogs and still all use 2nd class post but Michael Ward of Hillsborough is as thorough as you could ever get.
Good luck, it's a minefield but I'm sure you'll get through it.

Why not look at a housing association option where you can have a partial buy/rent contract and get your feet under the table then look at options after that.