Getting a Mortgage *first time buyer* advice please

[wakkaday]

hey guys
i am looking to buy a house for the first time and i want to make sure i get the right mortgage deal. I've searched on the internet and there is loads of information which is kind of confusing if i'm honest...

is it worth going to my bank first and see how much they can offer?
what do i need to look out for?
which type of mortgage is best to get?
any other tips/advice you can recommend?

i have about £25,000 deposit saved..

Thanks...

[MovedGoalPosts]

Before any estate agent will take you seriously you'll need to know what you can borrow. You'll have to talk to a mortgage provider or two for that, or see a broker. Many estate agents do have mortgage advisers "in house" who might offer some advice but remember they are working on a commision. Speaking to a bank's adviser will normally only involve you getting advice from that banks's range only.

You have a good deposit which will help you to get a more attractive deal. But you might want some of that for your other costs you will incur. As important is your credit and employment history. All are taken into account.

Remember when you are working everything out not to overstrech yourself. Interest rate are and have been very very low for some time now. They will go up, but by how much is unknown. In the early 1990s they reached a nasty peak of 15% :eek: although those levels now seem unlikely. Don't forget with your budgeting to allow for stamp duty, legal fees, the mortgage administration / valuation fee (often far more than the real cost of the service), any more detailed survey you might desire. Once you have the property, what costs will there be to move in? Have you allowed anything for changing carpets curtains decorations? It all adds up.

[Tali]

Try and find a local independant financial advisor. They will be familiar with all the deals on the market and will advise on the best. Their service is usually free as they will get a referral fee from the company you ultimately choose.

There's nothing wrong with going to your bank, but they will probably only advise you on their own products, limiting your choice.

[haydnwalker]

I agree with Tali - an Independent Financial Advisor would be your best bet. Most of them don't charge for advice (they get commission from the provider you choose should you go with them).

We've recently agreed a deal on a new house, and our IFA has been invaluable :)