For first-time buyers, house buying is a steep learning curve and a weird world of jargon, etiquette, and second guessing.
As Property Consultants here are 5 common questions we are asked time and time again.
What is the difference between exchange and completion?
Exchange is the point at which you have got your mortgage in place, had a survey, valuation, and council searches done, and formally agree to buy the property. You must also put down a deposit, usually 10 per cent of the value of the property — which you will forfeit if you change your mind.
Completion is the date that the legal ownership of a property is transferred. After final checks and searches, the buyer’s lawyer will place the balance of the purchase money to the seller’s lawyer. After the funds are received, the transaction can be completed, and the estate agent can release the keys to the buyer.
Can I borrow the Stamp Duty payment, and add to my mortgage?
Stamp Duty is paid after you’ve completed on a property, and therefore after your mortgage money has landed, so it is feasible.
The key is whether the affordability calculator says you can afford a slightly bigger mortgage.
One thing to be careful of when considering borrowing extra — whether it is for Stamp Duty, furniture, renovations, or whatever you are thinking of — is that you don’t tip yourself into a higher interest rate bracket.
Interest rates depend on “loan to value” — the size of your deposit compared to what you are borrowing. If you had a 10 per cent deposit, for example, your loan to value is 90 per cent. If you go for more money, but your deposit stays the same, then your loan to value status will get bigger.
However, interest rates usually go up in five per cent increments so you might well be able to borrow a few thousand more without penalty. Your broker or mortgage lender will be able to advise.
How do I make an offer on a property?
Offers need to be made to the selling agent, and most agents suggest putting it in writing too. Supply as much detail as possible to support your offer, this helps the seller make the most well-informed decision.
Can I make an offer on two properties?
You can check local crime figures on websites like www.police.uk, but statistics can be misleading. If your postcode includes a high street, for example, it could well be that a lot of the crimes reported are shoplifting, pickpocketing, and pub fights. Oxford Street, for example, has one of London’s highest levels of thefts, but far lower numbers when it comes to violent crime, burglary, and car and bike thefts.
The best way to truly assess the safety of a neighbourhood is to spend as much time there as you can. “Walk around at different times of the day and night to make sure you feel safe in your potential new neighbourhood.
Its also worth finding the area’s local Facebook group to ask people whether they feel safe walking around at night.
If you need any advice or are looking to buy an investment property we would be delighted to assist and help you with a ready made team. Call direct on + 44 (0) 207 993 4081 or simply send an email for a fast response.
