mortgage query

Discussion in 'benefits and housing' started by Hellsbells, Oct 26, 2017.

  1. Teaboy

    Teaboy It definitely looks brighter over there..

    That's because you're looking on a largely uninhabited cold and wet rock in the middle of the Irish Sea. :p
     
    ddraig, Slo-mo and phillm like this.
  2. Hellsbells

    Hellsbells World's best procrastinator

    :(
     
  3. phillm

    phillm Trolling through Life (TM)

  4. Sue

    Sue Well-Known Member

    Hellsbells likes this.
  5. smmudge

    smmudge It's a dirty job but someone's gotta do it

    When we were looking not so long ago I think about every estate agent asked us before we were even shown round a place if we had an agreement in principle, and most of the time when putting in an offer they wanted to see proof. Yes it's a bunch of crap as anything can go wrong after you've got it, but it's just one more of those annoying things you have to do to go through the process of house buying.
     
    Bahnhof Strasse likes this.
  6. Hellsbells

    Hellsbells World's best procrastinator

    Ha ha I wish!
     
    Sue likes this.
  7. Teaboy

    Teaboy It definitely looks brighter over there..

    Well in that case our broker must have dealt with all that. Either that or you just didn't look like you were good for it........
     
  8. Hellsbells

    Hellsbells World's best procrastinator

    Viewed a house on Saturday, made an offer, offer was accepted :eek::cool: And no one mentioned a word about a mortgage in principle.

    That part was very easy and quick. Now we have to sort the mortgage application out...

    At what point do we need to find a solicitor? Will they need this info when we have our bank appointment? I have no idea about any of this kind of stuff.
     
  9. colacubes

    colacubes Well-Known Member

    They may not but it's a good idea to get one asap so they can start getting on with searches.
     
    Hellsbells likes this.
  10. Hellsbells

    Hellsbells World's best procrastinator

    Do we have to pay solicitors upfront though? We obviously don't have our mortgage application agreed yet so what if it fell through for some reason?
     
  11. mauvais

    mauvais change has become unavoidable

    You should instruct a solicitor now. You will have to pay something, not their entire fee.
     
    colacubes likes this.
  12. Teaboy

    Teaboy It definitely looks brighter over there..

    Ask the estate agent you're buying through. Ones in London will cut a deal that you don't pay if it falls through, probably different on the Island but then again we've been through this. :D
     
  13. ffsear

    ffsear Well-Known Member

    We used these guys.. LCF Residential | Buying a Property | Harrogate, Bradford, Ilkley didn't have to pay them anything till the end.

    From what i remember the lawyers don't get involved until your mortgage has been approved and your lender has carried out their survey (which you pay for)
     
  14. Hellsbells

    Hellsbells World's best procrastinator

    I really like their clear website. Unfortunately choice is pretty limited in the Isle of Man. And nothing is clear or simple.

    Just been to the bank to try and arrange a mortgage application meeting. Was told nothing available for 2 weeks due to staff annual leave and training :rolleyes::mad: Going to phone up tomorrow to speak directly to Mortgage advisor & see if they can squeeze us in. 2 weeks is far too long to wait. The house will just be snapped up by someone else.
     
  15. StoneRoad

    StoneRoad heckling from the back!

    Try to get the seller to agree your offer to "subject to mortgage and survey" and explain about the delays at your prospective lender.
     
  16. Teaboy

    Teaboy It definitely looks brighter over there..

    Don't get to dispirited you're right at the start of a long journey and people expect progress to be slow. Just make it sound like you are on the ball and keep them updated. They obviously like your offer and presumably its not dependent on you selling an existing house so they'll probably cut you some slack.

    Unfortunately there are those out there who just run around putting offers in on loads of properties regardless of how keen they are or whether they can afford it. As you long as you don't come across as sketchy I'm sure it'll be OK. A good trick if you are worried is ask to go round and see the property again so you can start measuring up for curtains etc. Shows you are serious about the bid and its always good to get another viewing in.
     
    Hellsbells likes this.
  17. Hellsbells

    Hellsbells World's best procrastinator

    Am trying to be positive but have now realised we're not on the electoral roll. We've only just been here a year (not allowed to register before then), so just applied but the next registration isn't til April. :mad:
     
  18. seeformiles

    seeformiles Lost in the wood

    It’s not essential to have an agreement in principle but it:

    1) Shows you’re prepared.
    2) The estate agent knows you have the means and the backing of a bank/BS so will take your offer a bit more seriously when putting it to the vendor.
    2) Combined with no chain - this is an attractive proposition.

    Ultimately the local searches and house survey* will decide whether you’re buying an asset or a liability. Good luck! :)

    * The Home Buyer Pack from 10 years ago that died a death did so as they removed the only really useful idea - putting the onus on the vendor rather than the buyer to commission a survey. While it’s all very nice to know how sustainable/green the house is, it’s not essential from a buyer’s point of view who (quite rightly) baulks at spunking a non-refundable £600+ on a survey that might reveal the house to be a dog. Making this the responsibility of the vendor and say, make it valid for 12 months, it would have probably achieved the stated aim of speeding up the buying process. Pressure from Surveyors who saw the potential reduction in demand for their services killed that dead. Shame.. :(
     
    UnderAnOpenSky likes this.
  19. Teaboy

    Teaboy It definitely looks brighter over there..

    The energy performance certificates are an utter waste of time and money. What is not immediately obvious to anyone just looking at the house (double glazing etc) is just guessed at.
     
  20. seeformiles

    seeformiles Lost in the wood

    Yep - many of such surveys are literally drive-by, observing from the road and charging you £££ :mad:
     
  21. Teaboy

    Teaboy It definitely looks brighter over there..

    They mark you down for things like not having thermostats but they have no idea about the thickness or quality of insulation which is by far and away the most important thing for heat loss and therefore energy efficiency. I think half the time they just google when the house was built, look at building regs from that time then have a quick check on streetview to see if there is any double glazing.
     
  22. UnderAnOpenSky

    UnderAnOpenSky baseline neural therapy

    Really really glad we payed for a full survey for the first house we put an offer on. Despite it being immaculate inside (finished to a far higher standard then where we ended up buying) it showed serious issues with damp. Seller claimed they had no idea, which you'd kind of expect, but I actually believed her and actually felt a bit sorry for her. But not enough to buy the place and deal with it myself.

    Be aware of solicitors that advertise online much cheaper then the local ones will do it. We went with a place called Harmony for the first one. They were a fucking nightmare to deal with. Ended up getting a local recommendation after we pulled out the first one. Cost more, but it was worth it.
     
  23. seeformiles

    seeformiles Lost in the wood

    The survey for our current house brought up a similar problem and we negotiated a reduction based on the estimated cost of the work. Rather than sorting it out right away, to our shame we only sorted it 3 months ago - 17 years after we moved in! Blame it on our exckessive fondness for “beer and skittles” at the time ;)
     
  24. Hellsbells

    Hellsbells World's best procrastinator

    Next question - life cover....
    I've got a phone call on Friday with a company who are going to take my details and give me some quotes. Absolutely no idea what a credible amount per month should be. We'd be looking at decreasing joint cover.
     
  25. mauvais

    mauvais change has become unavoidable

    Look at your employment provisions. One or both of you may get N-times-salary death in service benefit, and you may feel this covers the mortgage risk should one of you die. Ditto critical illness - you need to work out how much provision is already in place.
     
    Hellsbells likes this.
  26. seeformiles

    seeformiles Lost in the wood

    Many banks/bs used to offer a cheaper rate if you use their insurance services as well. (I say “used to” as it’s a long time since I worked as an underwriter so my knowledge is probably somewhat out of date). We used decreasing term insurance for our mortgage as it’s a bit cheaper. Towards the end of my time in mortgage-related employment, I noticed a trend for lenders not insisting upon life insurance (Buildings insurance - yes) and leaving it up to the discretion of the mortgagor. It is good for peace of mind should (god forbid) something happens to you or a partner - esp. if you take up the critical illness option. If you’re young and in good health (as we were when taking out our first mortgage), you may want to go for the minimum required in order to keep costs down. If I was taking one out now I’d definitely get the critical illness cover as I’m not as convinced of my invincibility as I was in my 20s
     
  27. Hellsbells

    Hellsbells World's best procrastinator

    We asked Barclays (who we're hopefully getting our mortgage with) and as usual with the Isle of Man it's apparently only UK branches that offer life cover :rolleyes:
     
  28. Hellsbells

    Hellsbells World's best procrastinator

    We're just looking at solicitor fees now. Is £2,800 a reasonable sounding quote for a 185k house?
    It seems like a crazy amount. I've tried researching online and quotes seem to be loads lower but not sure I'm doing it right.
     
  29. Teaboy

    Teaboy It definitely looks brighter over there..

    Hmmm. Seems like a lot.

    I just looked at my old stuff and our original quote was £950 + VAT and disbursements. I think the disbursements came to around £300 - £400, maybe a little more. Mind this was 3.5 years ago but it was a leasehold which includes extra work for the solicitor.

    I'd shop around if I was you. That being said I wouldn't be surprised if you need a specialist qualification to practice on the Island and there are a handful of them running a cartel.
     
    muscovyduck likes this.
  30. colacubes

    colacubes Well-Known Member

    Snap. I just checked back and mine 2 years ago was similar price for a leasehold sale. Sounds like too much by at least £1500.
     

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