Buying a house can be stressful as there is alot to consider but can be a really enjoyable experience. Our step-by-step guide is to help you throughout your property journey, starting from a deposit right through to collecting keys.
The golden rule is quite simple. The bigger the deposit, the better the interest rate, the lower your monthly repayments, the cheaper the mortgage. It is advised to try and save a minimum of 10% of the property amount i.e £250,000 = £25,000 deposit.
If you have a smaller deposit, help is at hand via Help to Buy. It offers first-time home buyers the opportunity to buy a new home with a deposit of just 5%. There are limits on the value of the property you buy, which vary across the country.
As well as saving for your initial deposit, you’ll also need funds to put towards fees like property searches, surveys, mortgage arrangement fees, solicitor’s fees, stamp duty, home insurance, removal costs and so on
When applying for a mortgage, the lender assesses your affordability by looking into your annual salary and any other income you receive (You will also need evidence of your financial profile, such as bank statements and payslips). You will also need to provide all of your outgoings, such as Credit Card, Loan Debts, Household Bills, Childcare, Travel and General Living Costs.
There are different types of mortgages but the most common are: Fixed-Rate Mortgage, Tracker Mortgage, Discount Mortgage, Standard Variable Rate Mortgage, Guarantor Mortgage, Offset Mortgage.
It is worth speaking to a Financial Mortgage Advisor who is accredited by the Financial Conduct Authority they may access more competitive deals not readily available on the open market. They can help secure an Agreement in Principle which helps you decide your budget to find your home.
A Mortgage in Principle, also known as an ‘agreement in principle’ (AIP) or ‘decision in principle’ (DIP), is a statement you could borrow up to a certain amount when mortgaging a property.)
We work with a number of accredited advisors so if you would like to arrange a consultation please get in touch with us today.
YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
When buying a property over a certain price, Stamp Duty Land Tax (SDLT) is a lump sum tax paid over a certain value in England, Wales and Northern Ireland. It is payable to the HMRC 14 days from the date of completion or you may risk a fine.
However, first-time buyers pay no stamp duty on the first £300,000 (of homes worth up to £500,000). For homes costing between £300,001 and £500,000, a rate of 5% will apply – but only on that slice of the purchase price.
Stamp Duty Tax Rates as of December 2014 for residential properties purchased by individuals:
Brackets Rates
To learn more about STAMP DUTY.
Budget now in place, you can begin your Property Search on Rightmove, Zoopla, On the Market. Bare in mind you may not get everything you require (i.e off Road Parking, Garage, Downstairs Bathroom etc..) unless you design and build your dream home, it is always a good idea to ask a friend or family member who has purchase a property before to help in your search.
Being a first-time home buyer, makes you more attractive to a Seller and Estate Agents as you don’t have a property to sell, so you will be able to move in alot quicker.
You will need to start thinking about appointing a solicitor to represent and handle legal aspects involved when purchasing a property. To speak with our Legal Team please leave your contact Details a member of them team will contact you.
When placing an offer to the Estate Agent marketing the property.
You will need to provide the following proof to get your offer looked into and hopefully accepted:
If your offer has been accepted, you will need to formally apply for your mortgage, It is at this point that the sale is ‘agreed’ and both parties will receive a Memorandum of Sale to confirm. Your bank or mortgage advisor will be instructed to get surveys carried out on the home you are purchasing. There are no legal obligations on either side until contracts are signed.
Your solicitor will now begin all the legal work involved when purchasing a property, known as conveyancing.
This includes calculating the Stamp Duty, contacting Land Registry to register new purchaser, arrange the transfer of monies to the correct parties, and act as a intermediary between yourself, your lender and with the sellers solicitors. If you haven’t heard anything for a couple of days please make contact with your conveyancer to constant updates.
Your conveyancer will look to agree the terms of the sale, and mainly a completion date (once you have a set date then look to arrange the removal van to help transport your items).
Once the mortgage has been approved. The contracts will then be exchanged which mean you are legally locked binding contract to purchase the new property. At this point, you will need to transfer your deposit to your solicitor. After performing all legal procedures and signing all the documents with the bank and the seller, you can say that you are the owner of your new house.
On completion day, you will be notified by your solicitor to collect keys either from the estate agent or seller themselves.
Finally, don’t forget to update your address to the relevant parties such as your employer, bank, DVLA (if you drive) and mainly your family and friends.
Our success stems directly from our professional approach and our insistence on maintaining the highest standards of client care, offered by our high calibre committed trained staff.
297 Uppingham Road,
Humberstone,
Leicester LE5 4DG
KRE PROPERTIES LTD T/A Kings Real Estate
Company Number 10096755