Buying our own home

Discussion in 'Finance, Property, Law' started by jimnicebutdim, Apr 15, 2009.

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  1. Ladies & Gents,

    I need some advice from an unbiased and understandable source about homebuying.

    Me and the missus are thinking times right to start down the route towards becoming owner-occupiers. :D Trouble is both of us are complete buffoons about the whole setup. :(

    Currently I'm in the block and the missus is in a rented house. She refuse to move back to the pad and I'm getting annoyed chucking money away on the house.

    So I bow to knowledge that will be (hopefully) forthcoming:

    1)How do I get LSAP (bearing in mind I'm a crab)

    2)What is the critera for Key Worker? Do I get to choose my own house under the scheme? Is it a big con?

    3)What do all the different types of mortgage do? What is the best type for a young family, with not a great deal of savings, but a regular incoming.

    4) How essential is a deposit, I know pre-credit crunch you could get a 100% mortgage but apparantly these are the source of all evil in the world, so what is a realistic deposit? If my savings are not sufficent to cover the deposit is it advisable to get a loan or to wait.

    5)Are there any hidden costs or other things I need to take into account when budgeting for a mortgage (Home Insurance as opposed to Buildings, cost of repairs for the boiler, etc)? What is better in these circumstances, having savngs for emergencies, or using any savings to reduce the total overall of the mortgage?

    I hope you can answer some of the questions, and if anyone has any personnel experience of Key Worker, then could you let me know.

    Thanks
     
  2. 1)How do I get LSAP (bearing in mind I'm a crab)

    See your admin office - it's an £8,500 advance of pay if you meet qualifying criteria, but remember as an advance it does need paid back so will reduce your income for a while until repaid.

    2)What is the critera for Key Worker? Do I get to choose my own house under the scheme? Is it a big con?

    Open Market Scheme lets you choose your own house and may give you a percentage to put down against it. You pay the mortgage as normal on your part and pay them a subsidised interest rate.

    3)What do all the different types of mortgage do? What is the best type for a young family, with not a great deal of savings, but a regular incoming.

    Depends on your circumstances - impossible to say here

    4) How essential is a deposit, I know pre-credit crunch you could get a 100% mortgage but apparantly these are the source of all evil in the world, so what is a realistic deposit? If my savings are not sufficent to cover the deposit is it advisable to get a loan or to wait.

    Under homebuy scheme deposit not always necessary - if you want to buy on your own then 10% at very least necessary.

    5)Are there any hidden costs or other things I need to take into account when budgeting for a mortgage (Home Insurance as opposed to Buildings, cost of repairs for the boiler, etc)? What is better in these circumstances, having savngs for emergencies, or using any savings to reduce the total overall of the mortgage?

    You need a float to cover unforseen circumstances, and also make sure you have buildings/contents insurance.
     
  3. Look here Key Workers for information on Key Worker eligibility, and take some independent advice on the types of mortgages available to you.

    Our experienced mortgage team look at the whole of the market and specialise in helping the Armed Forces so you could start there. If you would like some help call us on +44 (0)870 837 5724 or visit www.forcesfinancial.com.


    Forces Financial is a trading name of Harmans Ltd. Registered Office: Globe House, 24 Turret Lane, Ipswich, Suffolk IP4 1DL. Registered in England Number 04229567. Harmans Ltd is authorised and regulated by the Financial Services Authority. Registration Number. 221363
     
  4. Thanks for the help so far. As soon as I get back from the desert I'll call forcesfinancial and have a chat.

    Question for FF though, are you offering to help as an unbiased charity, as an unbiased business (ie not influneced by any particular company, just making a profit for yourseves) or as a biased company (trying to push me towards a mortgageby one particulra company). Just so I know what to expect when I call.

    Thanks
     
  5. Grownup_Rafbrat

    Grownup_Rafbrat LE Good Egg (charities)

    Don't forget costs of purchasing, too. Legal fees, stamp duty, environmental surveys, etc. all add up.

    Then you'll need to decorate when you move in .....
     
  6. Forces Financial is one of the leading providers of insurance, travel and banking products for serving and retired members of the UK Police and Armed Forces, the MOD and their families.

    We offer a complete mortgage service for first time buyers, remortgages, buy to let and overseas properties. We search the whole market, as opposed to a limited panel of mortgage providers, so we can offer independent, unbiased advice. I hope that helps.

    Call us on +44 (0)870 837 5724 or visit www.forcesfinancial.com.


    Forces Financial is a trading name of Harmans Ltd. Registered Office: Globe House, 24 Turret Lane, Ipswich, Suffolk IP4 1DL. Registered in England Number 04229567. Harmans Ltd is authorised and regulated by the Financial Services Authority. Registration Number. 221363
     
  7. If in doubt about a Financial Adviser, look them up on the FSA Website.

    In this case: http://www.fsa.gov.uk/register/firmBasicDetails.do?sid=94435

    So far as I can tell (I'm no expert but I used to work for a major insurance company) they're an Independent Financial Adviser, so they offer unbiased advice. They would usually receive commission on products bought through them, but if they do the work then that's fair enough really.