The first rung of the property ladder is a lot higher up than it used to be. At F1RST Financial, we specialise in helping first time
buyers with the ‘lift’ they need to obtain their first property. We pride ourselves on our ability to research the ‘Whole Market’ and
produce a list of the most suitable deals available to you. What we enjoy most however, is helping you all the way through the
application process, right up to offer stage, keeping you informed at every stage of your applications process. Your adviser will
provide you with contact details, so that you have a point of contact and you are always welcome to ‘pop’ into our offices and speak
with your adviser and if they’re not available, another member of staff will be more than willing to help you. What’s more, when your
mortgage deal is nearing the end of its term, we’ll contact you again and search the market again to find you a new deal for the next
few years. See our Active Mortgage Management pages.
The Home Buying Process
Find out much you can afford to borrow
One of our Indepepndent Mortgage Advisers will help you to find an affordable mortgage that suits your needs and give you an idea of how much you can
afford to borrow. At F1RST Financial Services, we can also apply for a decision in principle. This will give you an idea of who will lend to you, subject
to some final checks on some of the information provided in your initial application. There is no charge for this and you are under no obligation to
complete a full mortgage application form. There will more than likely be a credit search carried out on you.
Register With Estate Agents
Find an area where you would like to live an register your interest with Estate Agents in that area. The internet is becoming a more and more popular way
to find a home. Your Estate Agent should then arrange for you to view any properties you are interested in. When you find a property you would like to
buy, you will need to 'make an offer' this is where you either offer the 'asking price' or if you feel this price is too high you can make a lower offer.
The offer is made to the agent and they feed that back to the person selling the property 'The Vendor'. One of two things will then happen, your offer
will either be rejected and you will have to decide if you want to offer more or look elsewhere, or your offer will be excepted.
Appointing a Solicitor/Conveyencer
When an offer on a property has been accepted, the seller's estate agent will need your solicitor's details. Your solicitor handles all legal aspects of
buying a property. This is known as conveyancing. You have to pay all solicitors costs so it is a good idea to get quotes from a number of solicitors to
decide which firm you wish to use. At F1RST Financial Services, one of Independent Mortgage Advisers can help you to find a Solicitor or Conveyencer. We
have access to systems that can obtain details of local Solicitors and Conveyencers and what they will charge to act for you.
Finalising Mortgage Arrangements
Once your offer on the purchase has been accepted you need to call us to arrange another appointment to finalise your mortgage arrangements. The lender
will usually want to see evidence of your earnings (recent pay slips), P60 and bank statements.
Most lenders will also survey the property to work out if the property is suitable as their security. You can pay for a more detailed survey that may
point out any problems with the property:
- A homebuyer's survey and valuation provides a report on the general state of repair of the property.
- A full structural survey is more expensive as the surveyor covers all accessible parts of the property.
The lender will only use a surveyor to obtain a valuation survey. It will not cover you in the event of any structural or other faults. If you have any
doubt as to the state of the property it is a good idea to get a survey of your own, which you have to pay for. At F1RST Financial Services, our
Independent Mortgage Advisers will help you every step of the way and will deal with all your mortgage paperwork up to receiving the 'Offer Letter'.
Exchanging contracts
Once your solicitor has carried out all necessary searches and the contract terms have been agreed, the contracts can be exchanged. Once each party has
signed the contracts and they have been exchanged, they are binding.
The contracts will include a completion date, which is the date that the property becomes yours. At exchange of contracts any deposit needed has to be
paid. At exchange of contracts you need to arrange buildings insurance so that the property is insured from that day. Usually, if you have one, your
present insurer will cover this new property free of increased premium until the completion date.
Completion
This is the day when your solicitor will have completed the purchase on your behalf and the property is vacant for possession. The Transfer Deed, the
document confirming you as the owner, will then be sent to the relevant registry for an update to the title showing you as the new owner.
Moving In
The property is now yours and you can move in. You may need to get a firm of professional movers to help you. Once you are in your new home you have need
to tell certain people. These include:
- Bank / Building societ
- Business contacts
- Cable / Satellite Company
- Clubs and Societies
- Council Tax Office
- Credit Card Company
- Dentist
- Doctor
- DVLC
- Employer
- Family
- Friends
- Gas Provider / Electricity Provider
- HP Companies
- Inland Revenue
- Insurance Company
- Library
- Loan Company
- Mobile Telephone Company
- Optician
- Pension Provider
- Royal Mail
- Schools
- Telephone Company
- Television Licensing
- Vet
- Water Provider
What are the costs?
Deposit
When contracts are exchanged a deposit is usually required and paid through your solicitor.
Valuation / Surveys
To make sure the property is an acceptable security for a loan, the mortgage lender's surveyor will need to inspect and value the property. The cost,
if any, of this valuation depends upon which lender you choose.
Legal Costs
Usually a solicitor or licensed conveyancer needs to be appointed to deal with the legal aspects of purchasing a property. This will incur costs. You
can ask for an estimate of these costs before you instruct the legal expert.
Local Authority Search
Your legal adviser will carry out a local authority search to discover if there are any plans for future developments that could affect the value and
purchase of your chosen property.
Land Registration
This verifies legal ownership of the property and registers the owner at that address.
Stamp Duty
This is a government tax based on the property's purchase price and is calculated as follows:
Up to £175K - Nil
£175,001 - £250K - 1%
£250K - £500K - 3%
£500K+ - 4%.
Please note that the applicable rate of Stamp Duty must be applied to the whole of the consideration paid to acquire the property.
Arrangement Fee
Most lenders charge an arrangement or application fee for a mortgage. Some lenders will allow you to add this to the mortgage and the fee varies
depending on the lender chosen and the mortgage offer.
High Lending Charge
This is an insurance policy designed to protect the lender against losses incurred if the property needs to be taken into possession because of
arrears. This insurance is commonly used for high loan to value mortgages, where the value of the property is not much more than the requested
amount of the loan. This charge is usually passed on to the borrower but it is important to remember that this is insurance for the lender, not the
borrower, but paid for by you.
Insurance
Lenders insist that the property is insured with a buildings insurance policy, covering against the usual risks. In addition to this you will need
contents insurance to cover theft, fire, damage etc. Another form of insurance is a mortgage payment protection plan that is designed to offer income
protection against unemployment, sickness and redundancy.
Life Assurance
Most lenders need life assurance to be taken out to cover the value of the loan if you die. Again we can search the 'Whole Market' to find the most
suitable and best priced policy for you. We are totally Independent.
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