First Time Buyers
Buying your first home is hugely exciting but can be a little bit daunting. With so many factors to consider it can be difficult to know where to begin...
- How much can I borrow ?
- How much will it cost ?
- What the best type of mortgage for me ?
- What insurance might I need ?
These questions, and many more, run through the mind of most first time buyers as they are beginning to think about buying a home and they are all very relevant. It can be difficult to know what the best mortgage for your circumstances is, and it’s easy to make a decision without taking everything into account.
Although our experienced consultants do take the time to fully understand every one of our client’s needs, we make especially sure that our first time buyers understand everything at each step of the process, taking the worry and stress out of the house buying process. This can leave you free to actually enjoy the fact that you are buying your first home….a big step for anybody and one that we believe should be filled with excitement and joy, not stress and worry.
So, if you are thinking of buying your first home, get in touch with us right at the beginning and we will provide you with your very own consultant who will talk you through the process from start finish.
Below are a few factors and cost that many first time buyers have not considered by the time they make the decision that they would like to get onto the property ladder...
Your home may be repossessed if you do not keep up repayments on your mortgage.
Stamp duty is a tax on land and property transactions. You will have to pay stamp duty when you buy a house or apartment that’s value is more than the stamp duty threshold. Strictly speaking, you pay stamp duty land tax (SDLT), but it's commonly known as stamp duty instead.
The amount of stamp duty payable when buying a home depends on the price of the property, below is a guide to the current stamp duty brackets:
House Purchase Price
Stamp Duty Payable
|Up to £125,000||Zero|
|The next £125,000 (the portion from £125,001 to £250,000)||2%|
|The next £675,000 (the portion from £250,001 to £925,000)||5%|
|The next £575,000 (the portion from £925,001 to £1.5 million)||10%|
|The remaining amount (the portion above £1.5 million)||12%|
Valuation of your New Home
When arranging a mortgage, after the initial assessment of the application, all lenders will want a valuation carried out by an independent surveyor on the property you are buying which unfortunately is usually at your costs. The lender will only want a “basic” valuation carried out, which is really only for their purposes and will not provide you with any report.
As purchasing a property for the first time is a big step for most people, both financially and emotionally, you may want a more comprehensive survey to be carried out, one which will provide you with a more in depth view of the property, potentially highlighting any work that may be required to be carried out on the property in the near future.
There are three main types of valuations/surveys and each comes with a different cost, these can vary considerably from lender to lender but below we have provided a guide of the likely costs based on a property of £150,000
|Basic valuation||= £200 to £400|
|Homebuyers survey||= £350 to £650|
|Full structural survey||= £600 to £850|
You will require a solicitor to help you with the purchase of your new home. The work the solicitor carries out on your behalf is called conveyancing. They mainly act for you to look after your interest in terms of the contractual work involved in buying a property but they do also look after the interest of your mortgage lender, ensuring that any conditions of your mortgage offer are adhered to.
The solicitor will liaise directly with the solicitors of the person selling you the property, eventually dealing with the money transfers involved in completing the transaction. The solicitor will also deal with paying your stamp duty to HMRC.
The solicitor will of course charge you for their services and these fees can vary for one solicitor to another. Although not linked as directly to the value of the property as the survey costs are, your legal charges can also increase in line with your property value. However, based on a purchase price of £150,000 you can expect to pay between £400 to £600. In addition to this there are other costs which are often called disbursements which involve things like land registry fees, coal mining search fees and other costs which will take your total legal fees up to between £800 to £1,200.
How can we help?
We will provide you with your very own dedicated adviser who will use their experience to guide you through the process from start to finish, ensuring you obtain the best mortgage for your needs and that you understand everything as the exciting process of buying your first home unfolds.