Buying a home can be a stressful and confusing time. I can guide you through this process right through to completion.
This step-by-step guide is designed to support and inform you throughout your mortgage application.
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Your home may be repossessed if you do not keep up repayments on your mortgage
As a mortgage adviser, the best advice I can ever give a client is not to have a mortgage!
Unfortunately, we’re not all in the enviable position where we can buy a property for cash, so in order to do so, most people do require some sort of mortgage. So if you do require a mortgage it needs to cost you as little as possible.
With mortgages and finance available up and down the high street, and even in some supermarkets, the choice of the best way to borrow what can be a considerable sum of money gets more and more confusing.
The internet also offer various sources of finance, but can become even more confusing.
Most people find it easier to deal with such a commitment face to face where the adviser goes through a full fact find and actually recommends a product dependant upon your circumstances and requirements.
The Money Advice Service have a great website www.moneyadviceservice.org.uk which deals with all aspects of personal finances and they have this to say about Mortgage Advisors;
Benefits of using a broker who offers advice
- They will use their expertise to help you look beyond the interest rate and properly compare the overall cost and features of the mortgage.
- They may have access to exclusive deals with lenders.
- They may tell you about lender-direct deals – even if they can’t arrange them for you.
- They will only recommend a mortgage that is suitable for you and that they know you can afford based on a detailed fact find they will carry out with you.
- A broker may help you do some of the paperwork and speed up the application process.
- Can save you wasted effort by telling you which mortgages you’re likely to get and which ones you won’t – especially useful if you’re self-employed or have other constraints.
- If you buy based on a broker’s advice you have more rights if the mortgage turned out to be unsuitable for you than if you buy direct from the lender based on your own research, or from a broker who only offers information.
It makes so much sense to go to a mortgage broker who is an adviser that can search a comprehensive panel on your behalf.
Such as me…
Why not just give me a call and I’ll be delighted to help.
Home buyers costs
Stamp duty – Stamp duty is charged on land and property transactions in the UK. The tax is charged at different rates and has different thresholds for different types of property and different values of transactions.
Legal Fees – For any purchase you will need a solicitor to complete all the legal work. The price of this service can vary from company to company, on average these fees should cost between £500-750 VAT+.
Survey/Valuation fee – All lenders will insist that a valuation is carried out on a property. This will only confirm the property value; it will not assess any potential problems with the property or need for future repair and maintenance. Valuation fees typically cost between £150 and £1,500 depending on the value of the property and level of survey you choose.
There are three reports you can choose from:
Home condition survey – this is the most basic and cheapest survey. It’s best for new-build and conventional homes. Typical cost: £250.
Home buyers report – this is a thorough survey of both the inside and outside of the property, which also includes a valuation. Typical cost: £400+
Building or structural survey – this is the most comprehensive survey and should always be done on older or non-standard properties. Typical cost £600+
We will advise you as to which we feel the most appropriate option given your situation is.
Arrangement Fees – Most lenders will charge either an arrangement or a booking fee when you apply for a mortgage. However, some lenders will allow you to add the cost of the fee to the overall loan meaning you do not need to pay this upfront. (Although you will pay interest on this fee during the term of the mortgage.)
Current stamp duty tax rates (if this is an additional property, add 3% to each level):
- Nothing on the first £125,000 of the property price
- 2% on the next £125,000
- 5% on the next £675,000
- 10% on the next £575,000
- 12% on the rest (above £1.5 million)