Buying our own home

I've also posted this in Finance........

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.

Hi Jim,
I will try and answers the questions for you as best as I can.
1 and 2)...No idea sorry!

3) There are so many different types of mortgages out there that it is impossible to advise. You really need to go and sit down with a Mortgage Advisor so that they can work out the options for you, looking at your income etc. Check before seeing the Advisor if they charge a fee for the consultation.

4) With regards to a deposit, you can't get 100% mortgages now (well not that I have seen!) . Most of the ones I have seen are 90%. There are 95% ones, and you have a better chance of getting them if you can get a parent to go as Guarantor ( depending if they would want too).

5) With regards to a Mortgage you might have to pay a mortgage valuation fee, sometimes you get the valuation for free or you can ask that the cost of the valuation is added on to your mortgage loan. The valuation report might state that further works are needed on your prospective purchase, which you could in turn try and get a price reduction from the seller for. The Valuation report might also suggest further reports are carried out such as Damp reports which you would have to pay for ( this isn't often the case, I am just trying to point out worst case scenerio)

You will also have to consider legal costs and disbursements, the cost of a Surveyors report ( a full report which is carried out by a professional if you want it), House insurance fees, and Moving fees etc.

If you want any more advice then please feel free to PM me..I am not an expert in Mortgages, but I do work in a property law firm so carry out the legal work in buying and selling houses for people every day.

Hey bud,

On the LSLP matter, read JSP 752, Chapter 2 Sect 4, you can find it on the DII intranet. This will tell you about the scheme and who you have to apply to in order to find out if you are entitled.

In a nut shell, if entitled you get an advance of pay upto £8500 (I believe this may be increased in the future but when i looked at it, this was the max) and I think you pay it back over 10 years (roughly £71 pm, it comes straight out of your wages).

Read the doc carefully tho, certain stipulations apply - like if you sign off, you must pay the total you owe back before your service ends etc.

Hope this helps.
Something I found out this weekend myself, as i too am looking to buy with the missis - gawd 'elp me!!

Taylor Wimpey new homes offer an armed forces discount!!!! and it isn't something to sniff at as the discount will cover the cost of the flooring throughout the house.
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