In this day and age people are able to relocate more than they ever have. With modern technology it is now very easy to work remotely. People are able to connect via the internet, families are able to stay in touch with video apps and now many businesses are easily run from home. For this reason the nets are being cast further when it comes to finding the perfect family house. A mixture of low interest rates, Government incentives and an army of buyers have caused an explosion the U.K’s property market.
You may also need to move home for a number of other reasons. First time buyers can soon find a growing family needs more space. Relocation due to work commitments are often a primary factor as businesses are able to stretch further afield. Affordability may become an issue so a cheaper property may be the answer, and finally homes are often downsized as children go their own way.
Preparation. Buying a property for whatever reason is probably still one of the biggest purchases you will ever make. Before you take significant steps into buying a property it is wise to ensure you obtain an ‘agreement in principle’. Many estate agents now require proof of this before viewings are arranged, this document proves inroads have been made to securing your mortgage. A full application will still be subject to checking your income, expenditure and credit.
Portability. You may already have a mortgage on your current home that could be ported to your new property, but this is only if your current mortgage lender will allow you to borrow the amount you need. A lender does not have to agree to a new mortgage, especially if you fall outside of their lending policy. These are all options an advisor can consider to make things as easy as possible.
Budgeting. Whilst assessing your budget you also need to account for other costs involved in buying and selling a property. Typically these are Estate Agent fees, Solicitors fees (and disbursements), stamp duty taxes, a property valuation fee and mortgage arrangement fees
Estate Agent Fees. These can vary enormously within towns across the UK. You should compare costs between agents and look at the services the agent is looking to provide but budget anywhere from 0.5-3% depending on the area.
Solicitors Fees. These again can vary from Solicitor to Solicitor, but will include the cost of the Solicitors time, along with a selection of fees payable, such as land registry fees, property searches, local searches, and other related fees.
Stamp Duty. This is the tax you pay to the government on property purchases. Currently there is a stamp duty holiday that has helped fuel the recent surge in property purchases. The current stamp duty holiday means 0% is paid on the first £500k. This will taper on June 30th to the first £250k, and eventually return to the standard levels on September 30th 2021. These will be, 0% to £125,000, 2% £125,001 - £250,000, 5% £250,001 £925,000, 10% £925,001 - £1.5 million and 12% above.
Property Valuations and Surveys. A basic report and valuation is normally organised via the mortgage lender, however if you require a more detailed valuation report, such as a Homebuyers or Full Structural Survey you can organise these yourself. It often depends on the type of property that is being considered as to which survey may be required. A new build that comes with a builder's warranty such as a 10 year N.H.B.C policy may require less stringent checks than an older property being bought for renovation.
Mortgage advisor fees. These can also vary depending on the company used. At Hoskin Mortgages an advisor fee is charged only on the completion of a mortgage. Any initial conversations we have are free of charge and you will be under no obligation.
Why use the services of a mortgage advisor. Hoskin Mortgages are a whole of market broker and speak with around 100 lenders that operate in the UK property market. We are able to provide a clear and concise idea of costs, affordability and have access to every lenders current criteria. It can make a huge difference to work with the right lender and as a fully regulated business our aim is to provide the cheapest product available. We cover all types of property finance from first time buyer, buy to let, remortgage, commercial, self-build, second charge loans and equity release. We also provide life assurance policies, mortgage protection and critical illness cover.
Why not contact us to see if you qualify for a mortgage, remember it’s free to talk and you will be under no obligation.
Σχόλια