If you’re thinking about buying your first home you’re probably finding the whole process of choosing the right mortgage rather daunting. So what do you need to know to get on to the first rung of the property ladder?
The amount of mortgage you can get depends on your income and also takes into account any monthly commitments you may already have, such as loans, credit cards etc…..
Maximum income multiples do vary. As a rough guide, a typical cap is 4.5 times your income but a multiple of 5 can be possible if you know where to look. This figure depends on your individual circumstances and different lenders’ criteria. Some lenders don’t use income multiples at all and will lend based on an affordability model looking at how much disposable income you have each month after your regular expenses.
5% is the minimum required deposit, but putting in more will get you a lower interest rate and potentially give you more options with regards to available lenders and more flexible lending criteria. Some scheme’s, such as Help To Buy or Shared Ownership can be useful if you have a very small deposit – please contact us for more information on current schemes.
A mortgage offer is a formal document from the lender confirming that they are offering you the mortgage. This is issued after the underwriting process has been completed and the lender is happy that you can afford the mortgage and the property is suitable for mortgage purposes (i.e. it’s structurally sound and it’s worth what you’re paying for it). A copy of the offer is sent to your solicitor and this is what they use to draw down the funds for completion.
Yes, all property purchases in the UK must be dealt with by a solicitor. If you need some guidance to find the right solicitor please contact us and we will point you in the right direction.
This is very much dependent on how long the chain of sales is – if you are the only person in the chain (maybe buying a new build or another vacant property) then 4-6 weeks is not out of the question. However if you are part of a longer chain then all people must be ready to move before a date can be set by the solicitors. Generally, the shorter the chain the quicker the move.
WHAT COSTS ARE THERE IN BUYING A PROPERTY?
Stamp Duty: A tax paid to HMRC on property purchases in the UK. Stamp duty is paid via your solicitor and the amount varies depending on the purchase price. There are lots of stamp duty calculators available online.