Buying a house is one of the most important purchases you will make, and buying a home for the first time will be an even more daunting prospect. Add to this the vast array of mortgage products available from a wide range of sources, and you are left with a high-stress, confusing decisions.
In addition to the usual tips which would be offered to all house buyers, we would recommend that you consider the following issues:
Ensure that you are realistic when working out exactly how much you can afford to spend on your new house. Even a newly built house will require some sort of furnishings, whereas older properties may require extensive work, such as re-flooring, tiling, or renewing the wiring. Make sure that you factor in all these likely expenses in addition to the purchase price, and other fees such as conveyancing and stamp duty.
When buying for the first time, there may be a number of details in the houses you are looking at, which you may not pick up. Always take an experienced home buyer, such as one of your parents, or a home-owning friend, when looking at property. If this is difficult to arrange, then make sure you at least get some assistance once you have selected a property you like, and are arranging a second viewing.
If you have been used to living at home with your parents, remember to budget for expenses such as council tax, gas and electricity bills, boiler servicing, and other home repairs. Make sure you know what the likely council tax charge will be in your new property. The selling agent should be able to tell you what band the house you are interested in buying is in, and how the charges are levied by your local authority.
Even if you do not have children, remember that property in the catchment area of good local schools will always be much easier to sell on. However, this may also be reflected in a higher purchase price. Always consider how your transport arrangements will change in your new house. If you have a car, your insurance premium may increase dramatically if you move from a town with relatively low crime into a city centre with higher crime rates, or if you move from your parents' house with a locked garage to a smaller terraced house with on-street parking. If your car is insured in your parents' name in order to reduce premiums, be prepared for these to be increased when you move into your new property and become the first named driver.
Consider the availability of public transport services, making sure you find out local bus routes, the frequency of train services from your nearest station, and, if you are moving a long distance, the range of flights available from your local airport. Even if you drive everywhere, this information will be useful for anyone coming to visit you who does not drive.
Try, where possible, to find somewhere to live that is close to your main place of work. Commuting can be one of the biggest household expenses, and as you are likely to be spending much more time on domestic chores and/or DIY, living somewhere which minimises your commuting distance will be very important. If property is more expensive nearer to your place of work, make sure you weigh up this additional expense, when compared to the costs and time of commuting. You may wish to ask colleagues in your workplace to see if there are possibilities to lift share with anyone from the area you move to.
A buy-to-let mortgage, also known as an investment mortgage, is designed for borrowers who want to buy a property to let out to a third party (e.g. tenants). The amount that the buy to let landlord receives in rent may be over and above the mortgage payments and will help to offset the management and maintenance costs of the property.
Over the past few years, more and more people have taken to investing in buy to let property as a long-term opportunity to make profitable returns, as well as a way of securing finance for their retirement plans. There are currently plenty of competitive buy to let mortgage deals on the market that are specifically aimed at the buy-to-let sector. These range from special offer buy to let mortgage deals to variable and fixed and rate options. Early Repayment charges may apply. It is imperative to find the best buy-to-let mortgage rates as this may determine whether you can afford the buy-to-let investment.
UK mortgage lenders will often assess buy-to-let mortgages on the earning potential of the property (i.e. the rental income) rather than affordability. However in more recent times the decision is based on the estimate given by the surveyor as to what the rental might be.
The Financial Services Authority does not regulate some forms of buy to lets, commercial loans, secured loans or overseas mortgages.
Offset mortgages are a relatively new sector of the mortgage market, and one that is growing all the time. A mortgage of this type offsets the amount of interest you pay on your house by considering the money you have in savings accounts and current accounts. The more money you have, the less interest on your mortgage you pay.
In theory this means that you can repay your loan faster and cheaper. Generally, you do not receive any interest on your funds in return for this deal. Current base rates are low, meaning that savings rates are generally poor. Choosing to use the money to reduce your mortgage payments can be a more sensible financial option. Furthermore, all credit card debt, personal loans and further debt can be incorporated into the nest of products, possibly leading to a lower repayment rate. These debts can also remain unsecured - not linked to your home. This turns short-term debt into long-term debt, however, and may not always be the best financial solution.
Remortgages can be used for various reasons, most people simply switch mortgage because it will work out cheaper for them.
For example, the introductory discounted interest rate may have finished with your current lender; therefore you could get a discount, or a lower APR, with another lender. Other individuals may use a re-mortgage to consolidate their debts, if they take out their remortgage for a larger amount than owed on the existing mortgage.
Remortgage Costs and Fees
Remortgage costs and fees Taking out a remortgage can be a good idea for a number of reasons, but there are also several costs and fees applied to remortgages. It is up to every mortgage holder seeking a cheaper remortgage to weigh up the costs and fees attached to changing loans. Sometimes, the costs and fees attached to a mortgage loan will be worth paying in order to take advantage of better rates.
There are several reasons why people cannot prove their income. From having several jobs to bonuses and commissions and income fluctuations. We're here to help.
Buying abroad is becoming increasingly popular. If you are considering buying abroad you may need an overseas mortgage. We understand that this can be daunting. Speak to our advisors who will go through your options and decide if this is the right type for you. Alternatively, if you own your own home in the UK, it may be more beneficial to remortgage and release some equity in order to fund your purchase abroad.
Changes in the exchange rate may increase the sterling equivalent of your debt. Smart Credit + acts as an introducer and may
refer your enquiry to a specialist in mortgages overseas.
The Financial Services Authority does not regulate some forms of buy to lets, commercial loans, secured loans or overseas mortgages.
Starting a new business and wanting to buy the premises? Or maybe you're taking the next steps to buy your current business premises? We can help to arrange the commercial mortgage, speak to one of our advisors today!
The Financial Services Authority does not regulate some forms of buy to lets, commercial loans, secured loans or overseas mortgages.
If you are thinking about building your own home, renovating, converting or doing a major project on your existing property
Our charges are usually 1% of the loan. i.e. £1000 on £100,000 mortgage. The overall cost for comparison is 7.5% APR. The actual rate will depend on your circumstances. Ask for a personalised illustration.
THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
Smart Credit + is an Appointed Representative of Pink Home Loans. Pink Home Loans is a trading name of Advance Mortgage Funding Limited which is authorised and regulated by the Financial Services Authority.
The Financial Services Authority does not regulate unsecured loans, commercial mortgages, conveyancing services, some forms of debt consolidation and some forms of buy to let mortgages.
The guidance and/or advice contained in this website is subject to UK regulatory regime and is therefore restricted to consumers based in the UK