First time mortgage

[claretburns]

I have a meeting with a bank in a couple of weeks regarding getting my first mortgage after a few years of saving. Can anyone explain the steps you need to go through for a mortgage and also from the start till end, how long roughly is the process?

[MiltonKeynesClaret93]

Hey man,

I got my first mortgage a couple years ago through my bank. Process was fairly simple. Have they asked you to bring any documents like payslips and other proofs of ID, address etc?

We discussed my finances i.e. earnings, outgoings, deposit etc, and then the types of mortgage products available. If your lender is like mine, they would be able to calculate roughly what they can lend you and how long you could pay it off over.
When you've established all of that, they'll probably run a credit check of some sort and give you a mortgage in principle. You can then look at making offers for properties, and a solicitor would help mediate between the estate agent, yourself and your bank/mortgage lender to put everything into place.

I hope that makes sense? I think that's pretty much how it went when I did it...

[MiltonKeynesClaret93]

What I would also say, is that they will run through absolutely everything with you anyway. They'll be able to answer any questions you've got, address any of your concerns etc.

[Dyched]

Got mine a couple of years ago. Very simple process. The more you read up of the steps needed to take until you get the keys, the more confused you’ll be.

[Burnley1989]

I have a meeting with a bank in a couple of weeks regarding getting my first mortgage after a few years of saving. Can anyone explain the steps you need to go through for a mortgage and also from the start till end, how long roughly is the process?

Are you going for help to buy? Either way your solicitor will make it so simple for you, it does feel like it drags out but it’s not a painful process by any means

[Quickenthetempo]

It does drag out, as do most things where solicitors are involved.

Just try not to get frustrated.

[Devils_Advocate]

Not sure how much flexibility and choice you will have but take some time looking at all the mortgage rate offers on the market and trying to get an understanding of how they work.

With inflation rates likely to increase by quite a bit some tracker mortgages that look brilliant now could be very costly in 12 months time

[beddie]

“ and also from the start till end, how long roughly is the process?” Anywhere from 25 to 35 years
Sorry couldn’t resist.Good luck with it I hope you get sorted.

[Quickenthetempo]

It does drag out, as do most things where solicitors are involved.

Just try not to get frustrated.

This was reference to the whole buying a house thing, not just getting a mortgage.

[aggi]

Bear in mind that your bank may not be the best mortgage for you, they're only going to offer their products. I'd also speak to someone independent like https://www.landc.co.uk/ or someone else who covers the whole of the market and see what they can offer you.

Getting the agreement in principle is quick. You will need to provide some documentation and it will be easier if you're employed and paid consistently through payroll rather than self-employed but the mortgage agreement isn't normally the slow part, it's all the other things that go with it.

[claretburns]

Thanks for all the replies and advice so far, it is much appreciated.

I don't need to rush into anything yet as the place I currently rent is a very good place to live and my contract still has another 6 months at least to run, so I can take my time and look through all the rates and offers from different banks.

In terms of the bank meeting I haven't yet been asked to bring anything with me, but in terms of wages, employment status etc I know all of this in my head and if they require proof this is easily accessible to provide them.

I don't mind the timeframe once we get into the process as long as is it not me chasing everyone to get on with it.

[claretburns]

Are you going for help to buy? Either way your solicitor will make it so simple for you, it does feel like it drags out but it’s not a painful process by any means

No help to buy, just been saving for a few years and got enough put together to get a deposit down and get on the ladder.

Also my job I have worked at for 9 years so far, not sure if length of time in one position goes in your favour or not, but it is proof of a steady, monthly income.

[KevWebstersBomber]

Make sure you don't do any online gambling.

[pompeyclaret]

As a first time buyer, if not using any part rent scheme, I'd recommend a Lifetime ISA. Gov will add 25% to it, and you can save upto £4k a tax year, so that's a £1k bonus. Assuming you don't buy until after April '22, that'd be £2k bonus. Few caveats on values, but nothing too stringent.

Would also advise speaking to a broker rather than just your bank. Might have to pay a small fee, but the saving would more than likely outweigh this.

[Rileybobs]

I've always used a mortgage advisor, some are free and I presume make their commission from the lender, some charge a nominal fee but only when you enter into your mortgage agreement. I know that some will say why pay for something that you can do yourself, but in my experience I have saved an awful lot of stress and headache in the past, and got some really good advice along the way. They may also have access to deals that you can't find yourself. They'll do all the liaising with the lenders and seem to close the deals a lot more efficiently as they will have a point of contact at the major lenders.

[Quickenthetempo]

One thing to consider is the rate you pay when your fixed deal ends.

If you pick the best one you might not have to change and pay fees every 3 years.

[PadihamThickNeck]

Make sure you don't do any online gambling.

Tell me about it, I had deposited 2.4k into Bet365 in the space of 3 months and it stopped me getting a mortgage

[Burnley1989]

No help to buy, just been saving for a few years and got enough put together to get a deposit down and get on the ladder.

Also my job I have worked at for 9 years so far, not sure if length of time in one position goes in your favour or not, but it is proof of a steady, monthly income.

It certainly helps mate, best of luck to you! It’s an exciting time

[claretburns]

Make sure you don't do any online gambling.

I did used to do online betting for football, but a work colleague warned me of this a couple of years ago when we were discussing mortgages, so I stopped all online betting and if I fancy anything now, I will withdraw £5 or £10 from a cashpoint and go into a bookies.

[Burnley1989]

Make sure you don't do any online gambling.

Very true! I had one bad month when I gave 3 months statements, but it was the wake up call to stop gambling as it was embarrassing.

My mate had a bad month at Cheltenham and it nearly cost him his relationship when his Mrs got the call from the mortgage advisor

[Paul Waine]

Thanks for all the replies and advice so far, it is much appreciated.

I don't need to rush into anything yet as the place I currently rent is a very good place to live and my contract still has another 6 months at least to run, so I can take my time and look through all the rates and offers from different banks.

In terms of the bank meeting I haven't yet been asked to bring anything with me, but in terms of wages, employment status etc I know all of this in my head and if they require proof this is easily accessible to provide them.

I don't mind the timeframe once we get into the process as long as is it not me chasing everyone to get on with it.

Hi claretburns, it's a long time since I took out my first mortgage. From what you've said, some savings and the same employer for 9 years, you shouldn't face too much difficulty getting a mortgage offer. You also need to think about the value of the property you plan to buy and how much you need to borrow to pay that price. The bigger your deposit the better (lower, generally being better though there may be other t&cs to consider, including fees) the interest rates that may be available to you. Don't forget that the mortgagor will want to confirm the value of the property - and they may decide it is lower than you've agreed to pay. The bit that might take a very long time and that sometimes just ends in frustration, is that before you can complete on the property you agree to buy the sellers also need to be able to move out. You can get stuck in a chain for several weeks/months. Sometimes the chains breakdown because someone in the chain can't get their mortgage or can't find a house they want to buy, or someone gets gazumped.

Good luck.

[Claretpants]

As a first time buyer, if not using any part rent scheme, I'd recommend a Lifetime ISA. Gov will add 25% to it, and you can save upto £4k a tax year, so that's a £1k bonus. Assuming you don't buy until after April '22, that'd be £2k bonus. Few caveats on values, but nothing too stringent.

Would also advise speaking to a broker rather than just your bank. Might have to pay a small fee, but the saving would more than likely outweigh this.

this is good advice but do note you must have open such an account for at least 12mths to qualify for bonus

[StuffyClaret]

If you get advice from a bank, you will only get access to the best deal that the bank offers. If you use an adviser then you should get recommended the best deal available to you from the whole of the market.

Speak to Adam at Pacific Financial on the roundabout at Briercliffe Road and Casterton Ave. I promise you won't regret it.....he's also a MASSIVE Claret (I blame it on the pies )

[pompeyclaret]

this is good advice but do note you must have open such an account for at least 12mths to qualify for bonus

Ah, clearly forgot that part as opened our LISA several years ago. You will probably get the bonus within a month or so, or we have when depositing, but not as useful if you want to buy sooner than 12 months

[TheOriginalLongsider]

My employer has an app that will provide just what you need. It explains all the steps involved, timescales, extra costs etc. You don’t need to be a customer to use the app. Hope this helps.

https://www.principality.co.uk/first-home-steps

[Loyalclaret]

As other have said a broker may have access to better deals than your bank.

However we have had good deals from both going directly to the bank and a broker. Most recently when our fix was up on the property we live in, my wife's bank offered a better deal.

For a BTL we used a broker, we could get the same deal from two brokers but one charged a fee. The lady was frustrated by her bosses charging the fee because she kept losing clients because if it.

May be going through the process again after this weekend.

[KateR]

While it's a long time since my first mortgage, we have had several since and also when the home was paid off we took a home loan on the collateral in order to do a large renovation project in 2017, I still remember the advise I was given was to get the maximum you could, there wasn't much spare in those early years but it definitely paid off in terms of selling and buying the next one.

The home loan I had from one bank was a variable interest, while the interest was low this year we converted it to a fixed interest loan and took several years off the repayment plan for not paying very much more than previous.

I know you said you had time but interest rates are low and I'm not sure how much longer they will stay that way now we're coming out of the pandemic, just something to consider and none of that is financial advise, just my experience. Additionally, house prices are moving up a lot faster than average people can save, so this should also be a consideration but easy to check in terms of the area you're looking to purchase.

[Billyblah]

As other have said a broker may have access to better deals than your bank.

However we have had good deals from both going directly to the bank and a broker. Most recently when our fix was up on the property we live in, my wife's bank offered a better deal.

For a BTL we used a broker, we could get the same deal from two brokers but one charged a fee. The lady was frustrated by her bosses charging the fee because she kept losing clients because if it.

May be going through the process again after this weekend.

Ive noticed a number of people suggesting that you approach an "advisor /Broker"....I think the proper term is Independent Financial Advisor (IFA). They can shop around on your behalf to get the best deal. These characters do not do this for free. They operate on a fixed fee or percentage. A couple of points in speaking with an IFA, firstly make sure that they are regulated...don't take their word for it, do your own background checks to find out and also do your own homework on what they are offering and ask lots of questions to test the water. From my experience IFA's are rather slippery characters. No reason not to use them but ask questions, do your own research and if their are elements that don't add up....walk away.

[buzzclarets79]

Just beware what a bank might offer you in terms of amount might be very different to what you can afford, just because they say you can have X amount doesn't mean you should do it, always make sure its affordable.
Also mentioned earlier in the thread shop around, some of the best deals I've ever had is from lenders I've never heard of, not like your high street banks.