Buying a house

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I've decided to buy a house. Somewhere on the southern end of the Northern line, with two double bedrooms and gas central heating.

Flood me with advice!

For "house", read "living accommodation of some sort", by the way; in Edinburgh I'd write "flat" without thinking.

I was going to rent, so that spikeylady could get out of her Wimbledon place and to make sure we can live together happily before buying. But she is now moving in with ergotia and lilithmagna, so we're in no rush; and the mortgage payments would be something I could afford by myself if need be, so in the unlikely event that we can't live together happily it won't be a disaster. And it seems wisest to get out of paying rent to someone else and start paying it to myself as soon as possible. Plus it means we can choose our own fridge and suchlike - I really enjoyed that flexibility when we lived in Mir.

To forestall some advice:

• Yes, I'll go to a FIMBRA-regulated financial adviser
• Yes, I'll get a capital-and-interest repayment mortgage, not an endowment or interest-only

Comments

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1. What you think you can afford for a mortgage and what a mortgage company thinks you can afford are two totally different figures, by some hundreds per month on many account and even thousands.

2. Getting a reference from an old landlord of a rented accommodation to say you managed rent of X amount if it is more than they claim your mortgage potential is can be of great help and can make them re-think what they will give you.

3. Bristol & West seem to give mortgages based on your earnings not what the books claim your mortgage potential can be which generally ends up more. They ask for 6 months wage slips as proof of potential.

4. Most mortgages come with a clause in the small-print saying you can not rent out the property or part of the property without their written consent or even at all. Some say you can have 1 lodger but no more. Check that carefully if you are ever possibly even slightly likely to rent a room or the entire property.

5. Bank accounts which off-set your mortgage are BIG problem causers if you sell the house before teh mortgage is paid off or if you redeem your mortgage before the final payment is contracted to be due.

6. Mortgages which you can take a break from are great, but check if they will charge you for taking a break, charge more per month to make up for it after or just extend the time you have to pay it by the amount of time taken as holiday.

7. Check what happens if they discontinue the produce, ie would you have to take out another mortgage or just run the course of your own. If you have to change it then you can be liable for a charge of up to £5,000 I have seen plus solicitors fees for the new mortgage arranged.

8. Fixed Rate is good provided you can live with your decision should the rate drop and you have missed out on that, you will tend to find all mortgage interest rates drop in election year and the year after but go up after by somewhat. Ask for 5 year fixed interest rate.

9. Shop around. They are at the moment fighting to give people mortgages and will tend to beat any quote given by another company.

10. Conveyancers (solicitors) tend to cost less outside London but have to deal with London all the time. Horsham has many. A conveyancer costs less than a solicitor as a rule but are specialised on conveyancing so wont leave your work because a more exciting divorce case comes in. I can recommend a conveyancer in Horsham (who I never worked for but always thought I should!) and a solicitor just outside Horsham who very much has her eye on the ball so to speak and knows how to charm her way into any solicitor's good books to get them to deal with her case first.

11. Conveyancers do not spend their time in meetings. If you call twice and are told theya re in meetings they are avoiding your call. Conveyancers spend their time in the office and on the golf course, *very* rarely anywhere else.

12. Make sure your solicitor/copnveyancer asks for the mortgage monies to be transferred to them by the mortgage company the day BEFORE you are due to complete. This makes things run smoother and a hell of a lot quicker on completion day. It solves a LOT of problems and worry and gives the solicitor time to chase up the mortgage monies, mortgage companies are well known for messing up completion monies which can end up in YOU having to pay your seller compensation.

I spent a few years working in conveyancing. If you want any advice on that respect give me a shout.

Good luck!

C.