Where to start??

Shelli

Hoping to get on the property ladder this year.....being optimistic here.

Where do I start? Mortgage Brokers? Estate agents? Bank?

I really have no clue.

All i have is a rough idea of where we want to live and that we want a house with at least 3 bedrooms.

Also, is it a lot more difficult to get a mortgage for a plot of land to build a house yourself?

someuser90

now its called the property snake

The_Conductor

Shelli wrote:

Where do I start?

First of all, you should find out what your borrowing capacity is- if you contact an independent mortgage advisor they should be able to assist you with this. Once you know what your price bracket is- you can check to see do you qualify for the affordable housing schemes, or are you looking at purchasing outright of your own accord. Thereafter its either a waiting game, or off you go to try and see whats available.

Shelli

We have been accepted for the affordable housing scheme with DCC, but have been on the list since Jan of last year and all we are being offered is apartments, not suitable for young children in my opinion. So we're looking at getting a mortgage ourselves.

Is it worth going to an independant advisor or is it better to go and just speak to the bank/building society?

Can anyone reccomend and advisor?

I dont think I have the best credit rating to be honest, I had a bit of debt about two years ago that got on top of me. I did manage to get it all paid off and have been careful since...is this likely to affect my chances of getting a mortgage? My boyfriend on the other hand should have an immaculate rating and has never been in any debt. We both have a reasonably good wage but very little savings, and no record of regular savings (we hand cash over to my parents, as we live with them, a decent lump each month to cover our bills, rent, food etc and extra for savings, but they put that away for us).

Also, I'm on maternity leave at the moment, due back to work next week, but I have no pay slips for the last 6 months...it's a bit of a nightmare really.

The_Conductor

An independent advisor would be able to get quotations for you from a range of possible lenders- which would save you the trouble of visiting them all yourselves, they would also have the means of getting you the best possible deal. Not having current payslips is not necessarily a problem- Personnel Departments will sign statements that you are permanent and what your salary is.

The blip on your credit rating will come up when they do a search- but it need not be a deal breaker- it might mean that your rate is a little higher than it otherwise might be though.

The lack of savings is not necessarily a problem- as you will have been paying rent- the rent will in many cases be similar to what mortgage payments might be.

I'd be quietly optimistic if I were you- but you do need to get independent financial advice.

Shelli

Do you think it will matter that the "rent" has been money given to my parents and we dont have an official record of it for the last year? We both have seperate records of rent paid in the year previous to this, but we have been living with my parents since Feb last year and the rent we give them has been saved for us towards our deposit, (not including bills and foods money of course).

Also, do you have to be in a job for a certain amount of time? I've been in the same job for 3 years and my boyfriend nearly 2 in his, but I'm probably looking at redundancy when I go back to work off maternity leave, although I do have another job lined up to go straight into should this happen.

The_Conductor

To be honest- you do really need documentation of income and expenditure. Have a chat with an independent financial advisor, regardless, as they will be in a better position to explain to you what your options are.

jdivision

Your borrowing capacity will have fallen since last year and there may be further interest rate increases on their way. Given your debt history that will mean further stress testing and probably an even further reduced borrowing amount. If you're looking in the new homes market offers are now being accepted on many properties - drops of 15 per cent are common. A number of agents have recommended to developers that they reduce unit prices by 100k so that may start to happen later this year. Obviously in second hand market your opening offer should be 15-20 per cent below asking price. Don't be surprised if another bidder miraculously appears - stick to your guns. They'll almost certainly ring you back a few weeks afterwards or at least that's my brother's experience.