We got the mortgage in principle, we know how much we can spend and will be looking to buy somewhere soon - does N gauge forum have any advice on buying your first home? Any little gems would be gratefully received!
Cheers
Dan
(On an aside note, Mrs Dan didn't baulk at buying a mk1 BG to convert into a home and she has even considered house backing onto railway lines, what a girl!)
If you are buying a new house remember you need to budget for things like curtain rails, blinds, light bulbs and fittings, and probably the garden will bare earth at the back. I learned this the hard way with my first home.
I assume you have a Mortgage on your 1st home.
If so, and it is not an Interest only Mortgage - find out exactly when they calculate the following year's Interest.
If you are say paying £200 a month in mortgage repayments, put aside in an interest bearing savings a/c £200 in January. If the mortgage company calculates the next year's interest say on the 1st of the following January (or December 31st) - using the £200 you saved make an "extra" mortgage repayment on the 30th of December and this will reduce the Capitol owed by £200 times the number of years left on your mortgage (eg. X 25).
If you do this every year you will considerably shorten the term of yout mortgage and the total interest you pay on it, and you will have gained 12 months interest on the amount you invest each year.
Have done this with each mortgage we took out (with Bradford & Bingley), and this enabled us to put a bigger deposit down on the next home we bought, and always had plenty of "positive" equity.
The last home we took a mortgage out on in the U.K. realised 5 times what we originally paid for it when we sold it prior to Emigration, and constantly making a "13th" monthly payment at the end of each year ment the final "settlement" figure was a lot less than it could have been.
I don't think that works any more, given the current almost-zero savings interest rates ! But I do an over-payment that reduces the capital of my loan every month, so the interest (calculated monthly) is less each time ... and therefore more is against the capital each time.
If it's a new home : make sure you do a snagging list with the builder, and also insist on a revisit after x months to address any other snags that become apparent
There's other things, but a lot depends on where you are, the area concerned & the type of house - eg out in the sticks, odds are you won't have gas but will need to buy oil - so join a discount scheme ! Can save up to 10p per litre on oil.
All really good tips from the guys and gals here.
Try and appoint a local legal firm so you can walk in and sort out any 'problems' face-to-face quickly. Dealing with remote/online conveyancers can be a PITA!
Like Mike, once I could afford it, I overpaid a bit each month and it cut 5 years off the mortgage.
The tip re cheaper oil is a good one as long as a large tanker can get down your road. We're on a narrow lane so aren't able to join such a scheme. Nice and quiet though!
Good luck with whatever you decide to buy.
Dave G
Quote from: daveg on May 06, 2015, 09:29:21 PM
The tip re cheaper oil is a good one as long as a large tanker can get down your road. We're on a narrow lane so aren't able to join such a scheme. Nice and quiet though!
Dave,
Can't they do a baby tanker ? Normally a small premium, but with the savings ...
If buying from someone else, cast your eyes round their furnishings & fittings as well as the house so if you see something you both like you can make them an offer for things not usually left and which they may not want to take with them. With my first house I did a deal on a perfectly good dining table & chairs and a cooker. Most first house buys are of a smallish property so items are bought to fit the room size.
If possible pay the extra for a really good survey as it could pay dividends in the future.
If you have kids/pets, stay outside the property at various times of the day and check what traffic is like i.e. do folks observe speed limits or drive like loonies ::)
Take parents (if available) with you to a viewing/2nd viewing as they've been through this possibly several times in their lifetime.
Last of all, check out where your layout will go :D (some might say this should be top of the list).
Work out what you can afford if the mortgage rate increases. I bought my second house when the rate was 9% and it rocketed to 15%. I'd have lost that house to repossession if I hadn't found a 3 year deal at a fixed 11%.
All the above are in no order of priority and are just the outpourings from my brain cell.
Quote from: MikeDunn on May 06, 2015, 09:59:37 PM
Quote from: daveg on May 06, 2015, 09:29:21 PM
The tip re cheaper oil is a good one as long as a large tanker can get down your road. We're on a narrow lane so aren't able to join such a scheme. Nice and quiet though!
Dave,
Can't they do a baby tanker ? Normally a small premium, but with the savings ...
Is pumping babies into a tank actually legal? :worried:
Where abouts are you intending to live, Dan?
Mrs Dan sounds like a champion! Just ask her for a model railway room with a house attached ;)
Seriously, good luck with it. It is one of the most important decisions you ever make. :thumbsup:
Quote from: newportnobby on May 06, 2015, 10:09:11 PM
Quote from: MikeDunn on May 06, 2015, 09:59:37 PM
Quote from: daveg on May 06, 2015, 09:29:21 PM
The tip re cheaper oil is a good one as long as a large tanker can get down your road. We're on a narrow lane so aren't able to join such a scheme. Nice and quiet though!
Dave,
Can't they do a baby tanker ? Normally a small premium, but with the savings ...
Is pumping babies into a tank actually legal? :worried:
Thanks Mike - I shall ask the question.
Mick: Yes! ;)
Dave G
http://www.helptobuy.org.uk (http://www.helptobuy.org.uk)
https://www.gov.uk/affordable-home-ownership-schemes/help-to-buy-equity-loans (https://www.gov.uk/affordable-home-ownership-schemes/help-to-buy-equity-loans)
And shared ownership is worth considering
http://www.homefocus.co.uk/Shared_Ownership (http://www.homefocus.co.uk/Shared_Ownership)
Wits helped my son get a toehold on the housing ladder (£250k studio flat in W London)
Thanks for the advice everyone
Quote from: Malc on May 06, 2015, 10:15:08 PM
Where abouts are you intending to live, Dan?
We've been looking at houses in South Manchester, near to where we currently are in Chorlton. We've got a mortgage in principle from our mortgage advisor on the help to buy thing so we only needed a 5% deposit, although a 10% would've been better (but would've taken another year to save it!) - I'm hoping to get something with 3 bedrooms, similar to what we have now.
Quote from: newportnobby on May 06, 2015, 10:09:11 PM
Is pumping babies into a tank actually legal? :worried:
I'll resist the temptation of pointing to "our glorious leader", and just comment that it is as long as it's a tankette ::)
http://en.wikipedia.org/wiki/Carden_Loyd_tankette (http://en.wikipedia.org/wiki/Carden_Loyd_tankette)
Factor in 2 options
1) interest rates re at an historic low - what will an increase in rates cost you?
I.e. Now .5% or so - what if 5%?? Could you afford this?
2) house prices now generally rising across the country so buy now may be the best strategy
However if the economy goes bad as a result of the Election fiasco, and prices fall , would it be better to wait??
I suspect a digital decision maker ( 2 bob bit) will be needed??
Quote from: Railwaygun on May 07, 2015, 09:44:09 PM
Factor in 2 options
1) interest rates re at an historic low - what will an increase in rates cost you?
I.e. Now .5% or so - what if 5%?? Could you afford this?
2) house prices now generally rising across the country so buy now may be the best strategy
However if the economy goes bad as a result of the Election fiasco, and prices fall , would it be better to wait??
I suspect a digital decision maker ( 2 bob bit) will be needed??
Thanks for pointing this out, the potential increase in interest rates affecting my monthly repayment is one which I'll have to ask my mortgage advisor to work out for me at various percentages! The initial mortgage we've been offered is a two year fixed rate mortgage.
I'm having problems with my Mortgage -or moreso the payment protection plan BoS / HALIFAX originally sold me 8 years ago. Aside from saying I will avoid HALIFAX at all costs forever. and NEVER recommend them to anyone. They have openly admitted they would be willing to discuss business as a new customer -but as an existing one, they take the money but nobody will speak to me about my policies now. Be very careful what you sign up for, it's big money so you should expect good service after you sign up.
That shouldn't put you off but don't expect any loyalty after you buy and read EVERY BIT of the small print (title deeds also -I made my solicitor translate all the Latin terms and legal junk so it was in plain English).
Rich
Don't forget
Mortgage fees
Solicitors fees
Stamp duty
Estate agents commission
http://www.dailymail.co.uk/money/mortgageshome/article-3090885/Two-year-fixed-rate-mortgages-race-1-Yorkshire-Building-Society-launches-best-buy-deal.html (http://www.dailymail.co.uk/money/mortgageshome/article-3090885/Two-year-fixed-rate-mortgages-race-1-Yorkshire-Building-Society-launches-best-buy-deal.html)
Quote from: Railwaygun on May 23, 2015, 01:37:21 AM
Don't forget
Mortgage fees
Solicitors fees
Stamp duty
Estate agents commission
A lot of those feeds are often absorbed by the seller I found when I bought our first house. My advice is if you need something major doing to the property such as a electronics upgrade/heating upgrade etc try and get it done as soon as you exchange keys before you move in properly. When we bought our house it was an ex council house bought in 80's by the previous owner and I don't think it had been decorated since then so all we did was get an electrician in to check everything. Most rooms only had 1 socket so we got him to install about 3 doubles in each room and we covered most walls in magnolia so it was a bit fresher for us to move into. Remember to look at houses as potential if it is in a condition that you can live with till you can afford to do the work then compromise as could save you money in long run. A perfect house is nearly impossible but will be more expensive.
Having done this for the first time (nearly) a year ago, I wish you good luck.
All advice given so far is sound, here is some from my experience. I found that once the previous lot was out, loads of extra work showed itself. As examples:
a) Virtually every room in the house had a different style of light switch / socket. We opted to replace them all with one standard type.
b) They had SKY (two dishes!) and we didn't want or need such a thing. Alas, Sky being the way they are, they had fire-bombed the standard TV aerial connection. Plus we found a rats nest of wires in the loft. We knew a decent aerial man from renting, but its more for the budget.
c) We asked to buy the oven, but nothing else, so obviously budgeted for all new appliances and had them delivered asap after getting keys.
d) First thing we did was hire a rug doctor and do every carpet in the house. So worth it. The colour of the waste water was, frankly, frightening.
e) Rang the utilities on the day we got in and gave all meter readings / set up new accounts. We brought existing gas and leccy supplier with us, so set that in motion on the move day also.
f) Water was not on a meter in the house (was a family of 5, think it was cheaper for them not to be). Only 2 of us and we know that rates are about 33% more than the water we actually use. It's free to have a meter installed, but takes a few weeks so again, got that arranged as soon as we could.
g) Our contract was based on vacant possession (i.e. NO **** left behind). Might as well not have bothered. The garage was responsible for the first trip to the tip. The loft took a weekend to empty (see below).
h) If you can (and the property has one) get into the loft to see condition of insulation. As mentioned above, I spent a weekend empty ours of original nasty fiberglass insulation, installing new insulation and boarding it all flush.
Other than that, I would advise to be prepared to have to CHASE your solicitor and most likely the estate agent. One of the things that irks me the most over this process is that you hand over a hill of money and these people (in my experience anyway) never call YOU, YOU have to call them!
Anyway, hope some of that is actually useful for you :thumbsup:
Skyline2uk
I well remember the 1st home my wife and I bought in 1973.
Can't remember there being any complications, it was a nice semi-detatched property that we purchased from a couple emigrating to Canada and it cost us £6,800.
Didn't require anything doing to it, and we moved in straight after returning from Honeymoon on the Costa Del Sol.
I put a £300 pound Deposit down on it, and took out a Mortgage for £6,500.
Some years later I bought a seciond hand Mercedes car for the same price as I had paid for my first house (£6,800).
Second house cost £17,500, and 3rd £55,000, but we got £260,000 for it when we sold it and Emigrated.
You can't go wrong if you put your money in Property.
DAN,
I bought my house last year, one to look at mate when you do the survey spend to money and get a full Survey done for everything no matter if it's a new house or not!
I almost bought one before I got the one I am in now but thankfully the survey brought up some issues which would have cost me a small fortune to sort out!
Also measure your rooms to make you have the room for you layout! :claphappy:
Thanks for the additional things to look out for, we've put an offer in on a place in Stretford, the surveys still need to be done etc but it's very exciting!
I want to get an electrician to install new double sockets in the bedroom, lounge and office before we decorate so that I have enough power for this computer (and layout!) I'd also like to lay new flooring before furniture goes on top of it all! The Rug Doctor is a good shout for the other rooms though - we hired one and it fresehend up every room (as well as delivering that filthy water previously mentioned!)
:thankyousign: :NGaugersRule:
Ahh where abouts in Stretford?
Not far from me at all Sale lad after all!
Put triple points in - you will need them ( and 2 in the kitchen)
Quote from: acko22 on May 25, 2015, 12:55:44 PM
Ahh where abouts in Stretford?
Not far from me at all Sale lad after all!
Walking distance to Humphrey Park railway station - I can see myself trainspotting next!