Mortgage Guarantee Scheme

Faye Clay 07/01/2016

What is the Mortgage Guarantee scheme?

If you’re after a pre-owned home, the Mortgage Guarantee scheme could help. It gives you the freedom to purchase any property in the UK up to the value of £600,000, with a mortgage for 95% of the purchase price
These days many mortgages can seem out of reach. The Mortgage Guarantee scheme makes it possible to purchase a pre-owned or new build property under £600,000 with a 5% deposit. It could get your home-moving ambitions back on track.

Here’s a quick summary of the important bits:

• Available for pre-owned properties and new builds across the UK – up to the value of £600,000.
• Both existing home-owners and first-time buyers are eligible.
• Buyers need a minimum of a 5% deposit.
• You must occupy the property and it must be your only property.

Available across the UK, from participating mortgage lenders.

Help to Buy is a government-backed scheme to support buyers who may previously have struggled to raise a sizeable deposit. It’s the same as a traditional mortgage, except the government guarantees a portion of the loan to an affiliated lender (though the agreement is between the lender and the government, not you!). You will barely notice the difference.
What do you need to know?
The Mortgage Guarantee scheme can only be used for the property you intend to occupy, and must be your only property. A minimum deposit of 5% of the property value will be required. The rest is par for the course – as long as you tick the lender’s boxes in terms of credit score and loan-to-income ratios. Another thing to note is that the scheme only applies to repayment mortgages. Interest-only and self-certified mortgages are not included.

Call today to speak to our financial advisor who will be  happy to help and answer any questions you may have.

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Smoke and Carbon Monoxide Alarms

Faye Clay 10/08/2015
From the 1st October 2015, it will be mandatory for all landlords and managing agents to ensure that all smoke and co2 alarms are installed and properly checked before each new tenancy to ensure they are in good working order.
The test button on the device only checks to see whether the battery is working by sounding the alarm and not the sensors.
Checking and testing the sensor is the best way to properly ensure that the co2 alarm is in working order and must be carried out every 12 months.
Sensors have limited life expectancy.
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A Buying Guide

admin 30/07/2015

Finding an affordable property.
Step 1: Before you start house-hunting, speak to a recommended, Independent Financial Adviser to see how much you can afford. Be careful not to overstretch yourself. Once you know how much you can borrow, look on portals like Rightmove and Zoopla and make appointments to view the properties within your price range.
Making an offer.

Step 2: Once you’ve found a home you want to buy, you need make an offer. It’s normal to offer an amount below the asking price. Make your bid to the agent who will negotiate on the seller’s behalf. Once the seller has accepted your offer, you will need to arrange a mortgage (if you haven’t done so already) solicitors and a survey.
Solicitors/ Conveyancing

Step 3: You will need to hire a solicitor straight after your offer has been accepted as they will deal with the legal aspects of buying and selling a property, get quotes from several and be sure you know what the quote covers. Conveyancing is the legal term for transfer of ownership of the home. Your solicitor and the seller’s solicitor will make sure the seller has the legal right to sell the property, The seller’s solicitor will need a copy of the deeds to the property and then prepare the contract.  If you have a lease hold property the solicitor will need to obtain further documentation, this often slows down the buying process. The buyer’s solicitor will carry out a local authority search to see who is responsible for roads or sewers and separate inquiries may have to be made to the water company. Most of these details should be provided in the Home Information Pack provided by the seller.

The Survey
Step 4: Your mortgage Lender will arrange a valuation survey to make sure the property is worth the price you’re paying. If the lender is satisfied the property offers enough security for a loan, you will be offered a mortgage. However, it is generally worth paying out the extra for a more in-depth survey.

Condition report
A Condition Report is a very basic survey. It is most suitable for new-builds and conventional homes in good condition.

Homebuyers Survey
This will help you find out if there are any structural problems, such as subsidence or damp. If it uncovers any major faults, you can ask the seller to rectify them or reduce the price so you can afford to get them fixed.

A Full Building Survey
This type of survey is particularly good for older homes or homes that may need repairs. It provides detailed advice on repairs in depth. However, the surveyor can’t look under floorboards or behind walls and doesn’t always have access to the roof. The report represents the surveyor’s opinion of the home and things which might go wrong.

Exchange and Completion
Step 5: The two most important stages in conveyancing are the exchange of contracts and completion. When the exchange takes place, the buyer will put down a deposit. After this, the seller and buyer are legally committed to the deal. If the buyer pulls out, for whatever reason, they lose their deposit. If the seller pulls out, the buyer can claim compensation.
After the exchange of contracts, a date will be fixed for completion, You will need to have the balance of the funds for the purchase of your new home paid to your solicitor ready for completion date. This means you need have the mortgage company ready to pay the balance. At completion the deal has been done and a transfer of ownership has taken place. You will then be able to collect the keys to your new home.

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Stamp Duty

admin 13/07/2015

Up to £125,000 Zero
The next £125,000 (the portion from £125,001 to £250,000) 2%
The next £675,000 (the portion from £250,001 to £925,000) 5%
The next £575,000 (the portion from £925,001 to £1.5 million) 10%
The remaining amount (the portion above £1.5 million) 12%
If you buy a house for £275,000, the Stamp duty 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

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