First time buyer

[unknown]

I am a potential first-time buyer - currently looking at apartments in
Leeds or Sheffield.
I have no experience of this at all and no-one to turn to for help.

I will be looking to buy somewhere about 100k.

I am going to go to my bank initially to get advice from them - and
then go to a couple of building societies to see what sort of mortgage
they will offer.

I think I need to know about :

the different sorts of mortgages.
pitfalls of apartments
any special insurance arrangements for apartments?
do I arrange the mortgage in essence before I find the apartment?
is it worth paying an IFA?

(I've looked at various web sites : motleyfool, moneysupermarket etc)

Can anyone suggest any good sources of advice/information.

[Miss L. Toe]

Post by unknown
I am a potential first-time buyer - currently looking at apartments in
Leeds or Sheffield.
I have no experience of this at all and no-one to turn to for help.

You have us :-)

Post by unknown
I will be looking to buy somewhere about 100k.
I am going to go to my bank initially to get advice from them - and
then go to a couple of building societies to see what sort of mortgage
they will offer.

There is an enormous difference between their products and their lending
policies.
Some still stick to 2.5 or 3 times income, others have an affordability
basis, based on your ability to make the interest payments this can lead to
5xsalary.

Post by unknown
the different sorts of mortgages.
pitfalls of apartments
any special insurance arrangements for apartments?
do I arrange the mortgage in essence before I find the apartment?
is it worth paying an IFA?
(I've looked at various web sites : motleyfool, moneysupermarket etc)
Can anyone suggest any good sources of advice/information.

The 'which' guide to buying and selling a house should be available from
your local library or you could even buy a copy.

[Stickems.]

Steer clear of IFAs.


<newcastle> wrote in message news:***@4ax.com...
|I am a potential first-time buyer - currently looking at apartments in
| Leeds or Sheffield.
| I have no experience of this at all and no-one to turn to for help.
|
| I will be looking to buy somewhere about 100k.
|
| I am going to go to my bank initially to get advice from them - and
| then go to a couple of building societies to see what sort of mortgage
| they will offer.
|
| I think I need to know about :
|
| the different sorts of mortgages.
| pitfalls of apartments
| any special insurance arrangements for apartments?
| do I arrange the mortgage in essence before I find the apartment?
| is it worth paying an IFA?
|
| (I've looked at various web sites : motleyfool, moneysupermarket etc)
|
| Can anyone suggest any good sources of advice/information.

[mogga]

Post by unknown
I am a potential first-time buyer - currently looking at apartments in
Leeds or Sheffield.
I have no experience of this at all and no-one to turn to for help.
I will be looking to buy somewhere about 100k.
I am going to go to my bank initially to get advice from them - and
then go to a couple of building societies to see what sort of mortgage
they will offer.

You need to realise that 100k for a flat in sheffield is insane.
www.housepricecrash.co.uk

Post by unknown
the different sorts of mortgages.
pitfalls of apartments
any special insurance arrangements for apartments?
do I arrange the mortgage in essence before I find the apartment?
is it worth paying an IFA?
(I've looked at various web sites : motleyfool, moneysupermarket etc)
Can anyone suggest any good sources of advice/information.

[unknown]

Post by mogga

Post by unknown
I am a potential first-time buyer - currently looking at apartments in
Leeds or Sheffield.
I have no experience of this at all and no-one to turn to for help.
I will be looking to buy somewhere about 100k.
I am going to go to my bank initially to get advice from them - and
then go to a couple of building societies to see what sort of mortgage
they will offer.

You need to realise that 100k for a flat in sheffield is insane.
www.housepricecrash.co.uk

Thank you for the link - was there anything particular on the site
regarding Sheffield and 100k which you could draw to my attention - or
were you being generalist about prices? What makes you say 100k in
Sheffield is insane?

[Ed_Zep]

I think it's called "vested interest" (in a crash).

The truth is no one predict what will happen and if there is a decline,
over what period.

Regarding getting advice, my advice is to not pay an IFA as they would
get a fee anyway and you would probably still have to
pay all gubbins that go along with getting a mortgage.

There are some good deals if you just look in the shop windows of banks
and building societies.

I have just taken out a remortgage with the Derbyshire B/S. No
arrangement fee or valuation fee or redemption penalties.

I'm not affiliated with them but have used them before and was the best
deal I found.

What I would also say is to watch deals that have a very low interest
rate in the first year. They usually cost more one way or another.

Best of luck with it.
Ed.

[Andrew MacPherson]

What makes you say 100k in Sheffield is insane?

If *you* feel a flat is worth 100k, then it is. But remember, unless your
wage rises significantly in the future (most people's don't), you may be
stuck there like many other second time buyers who can't afford to step
(leap!) up to a much more expensive house. So make sure it's a flat you
really like.

Personally I curse the day I bought a flat... I'm tired of training new
neighbours in the rented flat above me to keep the noise down. It's like
living in a drum sometimes.

Andrew McP

[mogga]

Post by unknown

Post by mogga

Post by unknown
I am a potential first-time buyer - currently looking at apartments in
Leeds or Sheffield.
I have no experience of this at all and no-one to turn to for help.
I will be looking to buy somewhere about 100k.
I am going to go to my bank initially to get advice from them - and
then go to a couple of building societies to see what sort of mortgage
they will offer.

You need to realise that 100k for a flat in sheffield is insane.
www.housepricecrash.co.uk

Thank you for the link - was there anything particular on the site
regarding Sheffield and 100k which you could draw to my attention - or
were you being generalist about prices? What makes you say 100k in
Sheffield is insane?

That site does have a "in your area" section where you can look to see
if others are in Sheffield and what they think.

Why are you buying now?

What service charges will you be paying?
Add that to your mortgage and then total in any repairs you might need
and then compare the total to the rent on an equivalent.

Is 100k three times your income?
What did similar properties go for 3 years ago?

http://www.houseprices.co.uk/
Have a play on there.

Who is buying the neighbouring flats? Wil;l you be buying the first
one or is it an establish building?

If prices drop you'll be stuck paying a bigger mortgage than the flat
is worth and you'll not be able to afford to buy anything else.
Flats are great if you never want kids and can guarantee than you'll
not get badly stung on the service charges.

[n***@invidion.co.uk]

Check the mortage rates on the MoneyFacts website, if you don't have
access a paper copy.

That is assuming that you already know whether you want a repayment
mortgage or an interest-only mortgage.

Neil.

--
Financial Calculators & Tools
http://www.invidion.co.uk

[Daytona]

Post by unknown
I am a potential first-time buyer - currently looking at apartments in
Leeds or Sheffield.
I have no experience of this at all and no-one to turn to for help.

Neither did I at the time, but you've found the 2 best places for
advice in the UK - here and The Motley Fool.

It's a FAQ, so look at some previous posts -
<URL:http://groups.google.co.uk/group/uk.finance/search?q=http%3A%2F%2Fwww.moneysavingexpert.com%2Fcgi-bin%2Fviewnews.cgi%3Fnewsid1101649966%2C86816%2C%23&start=0&scoring=d&>
<URL:http://groups.google.co.uk/group/uk.finance/search?q=mortgage&start=0&scoring=d&>

Post by unknown
the different sorts of mortgages.

<URL:http://www.fool.co.uk/decisioncentre/mortgages/articles/mortgages.aspx>

Post by unknown
pitfalls of apartments

Generally 1 bed apartments rise quickest in booms and fall quickest in
slumps. At the end of the early 90's recession, which was the first
time I'd taking notice of the property market, FTB simply didn't
consider them as they could afford 2-3 bed houses. I wouldn't buy one
now for precisely those reasons, but then again I wouldn't buy
anything as imo property prices are too high and will fall, as they
invariably do from time to time. It isn't worth the risk to capital -
far better that a landlord takes on that risk as rents are less than
or similar to mortgage payments + maintenance + insurance.

See the long term real house price trend graph on the latest
Nationwide report
<URL:http://www.nationwide.co.uk/hpi/historical/Apr2006.pdf>

Post by unknown
any special insurance arrangements for apartments?

None - the insurer will ask if it's an apartment and give you the
appropriate insurance automatically.

Post by unknown
do I arrange the mortgage in essence before I find the apartment?

I was taken in by people that said you had to, but the mortgage
company wouldn't give me a figure until a surveyor had given them an
opinion on a house.

If you want to move really fast (mortgage approval willing) make sure
your solicitor has the deposit + their fees in their account.

Post by unknown
is it worth paying an IFA?

No
<URL:http://groups.google.co.uk/group/uk.finance/browse_thread/thread/7199e765f9784469/df140366b49d1f3e#df140366b49d1f3e>

There's some links on my webpage -
<URL:http://mysite.wanadoo-members.co.uk/quickhelp/property.htm>

Daytona