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FAQ's

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Get answers to some common questions.

Many mortgage lenders will let you use your Right to Buy discount as your deposit, meaning you will not need to save a deposit yourself. However, some lenders may still expect you to put down a deposit as well.

You get a 35% discount if you’ve been a tenant for between three and five years. After five years, the discount goes up by 1% for every extra year you’ve been a tenant, up to a maximum of 70% – or £82,800 across England and £110,500 in London boroughs (whichever is lower).

A number of lenders now offer Right to Buymortgages, providing financing for eligible tenants – whether council or housing association – to buy their homes. However, if you have suffered bad creditproblems in the past it may affect whether you are able to get a mortgage.

The Right to Buy discount. In a Right to Buy sale, the property is given a market valuation, then a government discount is applied. The Right to Buydiscount varies depending on where in the country you live, how long you’ve been a council tenant and whether your home is a house or a flat.

f you have been a tenant in a council property for 3 years or more, then you may be able to purchase your home at a reduced price through the government’s right to buy scheme.

Your eligibility will need to be confirmed by your landlord, and right to buy mortgage lenders will need to ensure that you can afford to keep up the monthly repayments, before they approve your mortgage application. But, if you decide that becoming a homeowner is the right path for you, then we are here to help you.

If you buy a second property that is not your main residence, you will have to pay Stamp Duty Land Tax (SDLT) on it. The amount you will pay is dependent on the purchase price of the property as detailed below:

Less than £125,000: 3%

£125,001 – £250,000: 5%

£250,001 – £925,000: 8%

£925,001 – £1.5 million: 13%

£1.5 million+: 15%

Information correct as of April 2017 – Source:www.gov.uk/stamp-duty-land-tax/residential-property-rates

In order to buy a new home with a mortgage, you will need to sell your existing home first. However, if you are struggling to sell your home, you could consider renting your property temporarily, until you are able to sell it.

A let to buy mortgage would enable you to lease your current property and buy a new home. Let to buy mortgage lenders will need to see that your rental income will comfortably cover your mortgage repayments. But, if you choose to continue letting your existing property instead of selling it, you will need a buy to let mortgage.

If you think a let to buy mortgage will help you secure the property of your dreams, you will need to apply for both a let to buy and residential mortgage, and ensure that both applications complete at the same time, which we can arrange for you.

When you move home, there are quite a few expenses involved which you may not have considered, especially if you change your mortgage lender. We have put together a handy list of all the associated costs when moving home below for your guidance. The precise fees you will need to pay are determined by the value of the property you are buying and your mortgage lender.

Mortgage booking fee: Some mortgage lenders will charge this to secure your mortgage deal.

Cost: £99 – £250

Mortgage arrangement fee: Some mortgages products charge a mortgage arrangement fee and a mortgage booking fee, which is either paid upfront or added to your mortgage debt. Remember, if you choose to add this cost to your mortgage, it will increase over the lifetime of your mortgage.

Cost: £1,000 – £2,000

Telegraphic transfer fee: Needs to be paid to the lender to transfer the amount you are borrowing for the mortgage to the seller’s solicitor.

Cost: £25 – £50

Mortgage broker fee: If a mortgage broker arranges your mortgage for you, you will need to pay them a fee or commission for doing this.

Cost: £95 – £495

Valuation and survey fees: Your mortgage lender will request a valuation for your new home. The cost will vary according to which survey you choose:

Home condition survey: The most simple and cheapest survey, often instructed for new-builds.

Cost: £250

Homebuyer’s report: A more thorough survey, valuating the inside and outside of the property.

Cost: £400

Building survey:  A complete survey, commonly used for older or unconventional properties. If you want peace of mind, before you commit to buying your new home, this type of survey is certainly worth considering.

Cost: £600

Searches: Charged by your local council for checking whether there are any problems that could affect the value of the property you are looking to purchase.

Cost: £250 – £300

Legal costs: A solicitor will be needed to carry out any necessary legal work for you.

Cost: £850 – £1,500 plus VAT

Stamp Duty: Paid on all UK land and property purchases over £125,000. The amount you pay is dependent on the purchase price of your property as follows:

£125,001 – £250,000: 2%

£250,001 – £925,000: 5%

£925,001 – £1, 500,000: 10%

£1,500,000+: 12%

If you are buying an additional property, the percentage you will need to pay is calculated as follows:

Less than £125,000: 3%

£125,001 – £250,000: 5%

£250,001 – £925,000: 8%

£925,001 – £1.5 million: 13%

£1.5 million+: 15%

Moving costs: If you need help to pack, transport and deliver your belongings to your new home, you will need to instruct a removal firm.

Cost: £300 – £600

When you move home, you should be able to transfer your current mortgage to your new property. As you will probably need to borrow more, in order to purchase your new home, your mortgage lender will want to value the new property.

Moving home is however one of the best times to get a better mortgage deal. You will firstly need to check if there are any early repayment charges or exit fees for repaying your current mortgage deal early, which your current lender should be able to tell you.

If there are penalties for leaving your current lender, then you will need to find a new mortgage deal that is sufficiently cheaper to cover these costs. Our mortgage advisors are remortgage experts and can tell you whether a new mortgage deal would be best for you. 

If you have bad credit, the mortgage options available to you are similar to standard mortgages. However, you will have to pay a higher rate of interest, and will likely need a larger deposit of around 15% or more. The more you can save however, the better your chances are of getting your mortgage application approved.

Mortgage lenders see those with poor credit as a risk, and therefore charge a higher rate of interest and request a bigger deposit to mitigate this.

If you have a history of bad credit or are worried about your finances, get in touch. Our mortgage advisors are experts in adverse mortgages and can advise you on your available options to help you get on the property ladder.

If you are thinking of remortgaging your home, you may find that there are some charges for doing so. The exact fees and precise amount you will pay are dependent on your current mortgage deal and the value of the property you are buying. The typical fees you could be expected to pay are as follows:

Mortgage arrangement fee: Can be paid upfront or added to your mortgage debt. Remember, if you choose to add the Mortgage Arrangement Fee to your mortgage, you will ultimately pay interest on this.

Estimated cost: £1,000 – £2,000

Mortgage broker fee: If use a mortgage broker to help you remortgage, you will need to pay a fee for them to arrange this for you.

Estimated cost: £95 – £495

Valuation and survey fees: Your new mortgage lender may request for your home to be re-valued. The cost for this varies, depending on the survey the lender requests:

Estimated cost: £250 – £600

Legal costs: You may need to use a solicitor to take care of any required legal work for you.

Estimated cost: £850 – £1,500 plus VAT

If you current mortgage deal is due to expire, then you should ideally start to look for a new mortgage at least three months prior to this, to ensure that everything is in place when this happens.

If you feel that your current mortgage deal is restricting you however, and are considering switching to either get a better rate, reduce your term or simply want a more flexible mortgage, then it has never been a better time to do so, with interest rates at an all-time low.

To check whether now is the right time for you to remortgage, get in contact and see if you can take advantage of the fantastic remortgage deals available.

The first thing you will need to consider before you remortgage is how much you can afford to pay. You can do this by collating your mortgage paperwork and recent bank statements together, to see what your current interest rate is and how much your monthly outgoings are.

Most people are able to remortgage their home to get a new mortgage deal. There are many reasons why remortgaging could be a good option for you including:

  • Getting a better mortgage rate
  • Having the option to make overpayments
  • Enjoying a more flexible mortgage
  • Freeing up cash for some long awaited home improvements
  • Purchasing additional property
  • Saving money on your monthly repayments
  • Reducing your current term

If you would like to know which remortgage options are available to you, get in touch! Our expert remortgage advisors will provide you with a free mortgage review and compare thousands of deals to find the remortgage deal that best fits your needs.

When buying a home your mortgage lender will likely insist that you have buildings insurance in place before you exchange contracts.

Whilst it is not compulsory to have any other level of cover in place to buy a property, there are insurance policies that can help you through a rough patch. For example, income protection can pay your mortgage repayments for a fixed period of time, should you unexpectedly find yourself out of work due to an injury or illness, whilst a life insurance policy could completely clear your outstanding mortgage debt, should the worst happen to you.

If you would like to know more about the various protection options that are available, we can help. Our expert mortgage and protection advisors can meet or chat at a time to suit you, and can ensure that you get the right level of cover for your personal circumstances at an affordable price.

The government has created the help to buy scheme to assist first time buyers in buying their own homes. The scheme consists of two parts; help to buy shared ownership and help to buy equity loan.

The entire mortgage process has several parts, including getting pre-approved, getting the home appraised, and getting the actual loan. In a normal market, this process takes about 30 days on average. During high-volume months, it can take longer—an average of 45 to 60 days, depending on the lender.

Bad credit mortgages work like any other mortgage, except that they accept people who had problems paying their debts in the past. While it’s possible to take out a mortgage with as little as a 5% deposit if you have good credit, subprime lenders require 15% and upwards.

The average UK house price is £227,000 according to HM Land Registry. If you had one of the average interest rates from the section above, say the 4.33% for a Standard Variable Rate, here’s how your mortgage costs would work out over a 25-year mortgage.

When buying a home, you will need to not only have enough money saved for your mortgage deposit, but also your mortgage fees, moving costs and legal expenses. We have compiled a handy list below of all the possible purchase and moving expenses you may have to pay, to help you with your budgeting. The exact fees and amount you will pay, is dependent on the value of the property you are buying and your chosen mortgage lender.

Mortgage booking fee: Some mortgage lenders will charge this to secure a fixed-rate or tracker deal.

Cost: £99 – £250 

Mortgage arrangement fee: Some mortgage products will incur a mortgage arrangement fee, in addition to the mortgage booking fee. This fee is either paid upfront or added to your mortgage debt. If you chose to add it to your mortgage, the cost will increase over the lifetime of your mortgage.

Cost: £1,000 – £2,000

Telegraphic transfer fee: Needs to be paid to the lender to transfer the amount you are borrowing for the mortgage to the seller’s solicitor.

Cost: £25 – £50

Mortgage broker fee: If you use a mortgage advisor to arrange your mortgage for you, you will need to pay a fee or commission, depending on the value of your mortgage.

Cost: £95 – £495. However, this may vary if you need to use a specialist lender 

Valuation and survey fees: Charged by the lender to value the property you are buying. The cost varies according to which survey you choose:

Home condition survey: Most basic and cheapest of all the surveys and often used for new-builds.

Cost: £250

Homebuyer’s report: More in-depth survey, assessing the inside and outside of the property, and also includes a valuation.

Cost: £400

Building survey:  A complete survey generally used for older or unconventional properties. Although they are the most expensive, they are certainly worth considering, as it could potentially save you a lot of money if any structural problems are found with the property.

Cost: £600

Higher lending charge: Can be charged by lenders if you borrow most of the value of the property.

Cost: Approximately 1.5% of the amount you borrow

Searches: Your solicitor will arrange for the local authority to check whether there are any issues that could affect the property’s value. The local council can charge a fee for carrying out these searches and may also request that a drains search be done at the same time.

Cost: £250 – £300

Legal costs: You will need to instruct a solicitor to carry out the necessary legal work for you.

Cost: £850 – £1,500 plus VAT

Stamp Duty Land Tax (SDLT): Charged on all purchases of UK land and property over £125,000. However, the amount you will pay is dependent on the purchase price of the property you are looking to buy, and whether you have owned a home before as follows:

First home: First-time buyers are exempt from paying SDLT on the first £300,000 of the purchase price of a property up to the value of £500,000. All purchases in excess of £500,000 will pay the standard stamp duty rates as follows:

  • £0 – £300,000: 0%
  • £300,001 – £500,000: 5%

Next home: If you are currently or have previously been a homeowner, you usually pay SDLT on increasing portions of the property price:

  • £0 – £125,000: 0%
  • £125,001 – £250,000: 2%
  • £250,001 – £925,000: 5%
  • £925,001 – £1.5 million: 10%
  • £1.5 million+: 12%

Second property: If you are looking to buy an additional property, you usually have to pay 3% on top of the normal SDLT rates as follows:

  • Less than £125,000: 3%
  • £125,001 – £250,000: 5%
  • £250,001 – £925,000: 8%
  • £925,001 – £1.5 million: 13%
  • £1.5 million+: 15%

For example, if you buy a next home for £275,000 the SDLT you owe is calculated as follows:

0% on the first £125,000 = £0

2% on the next £125,000 = £2,500

5% on the final £25,000 = £1,250

Total SDLT = £3,750

Information correct as of December 2017 – Source: www.gov.uk/stamp-duty-land-tax/residential-property-rates

Moving costs: Paid to the removal firm (if you choose to use one) to pack, transport and deliver your possessions to your new home.

Cost: £300 – £600

To buy a home with a mortgage, you will need to save a deposit of at least 5%. The more you can save, the better your mortgage rate will be.

Most mortgage lenders will lend you up to five times your salary. However, this is dependent on a number of factors including your age, number of dependants and current financial commitments. Lenders generally work out how much they will lend you based on what you can realistically afford each month after you have paid your bills, credit cards, loans etc.

All mortgage lenders have their own criteria. The following factors all play a part in determining their mortgage offer and how much they are willing to lend to you:

  • Amount you wish to borrow
  • Size of your deposit
  • Employment status and income
  • Credit rating
  • Outgoings
  • Existing debt
  • Your age
  • Length of the mortgage term
  • Your credit status
  • If you are applying solely or jointly

A mortgage is a loan from a bank or building society that enables you to purchase property. The loan is repaid with interest over a number of years, with the term for doing this dependent on your personal financial circumstances.

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