So, you’ve decided to make that move
So you have decided it is time to take the plunge and step onto the property ladder. And first things first, the deposit. Here, there is a simple rule - the bigger your deposit, the lower the interest rate.
There are literally thousands of mortgages from hundreds of lenders - ranging from high street names to firms only specialist financial advisers.
And it is worth investigating the Help to Buy scheme in Scotland where you can be given assistance with your deposit.
And while the numbers vary, the principle that the more you save, the less you pay holds true.
Before you can put in a bid on a property, you need a mortgage lender to confirm that it is prepared to lend you money.
This is called a mortgage ‘ in principle’ and without this, your offer won’t be taken seriously.
Properties are marketed with either a fixed price or ‘ offers over’, which is the lowest price the seller will accept.
Check your mortgage and deposit will cover the value of the property you would like to buy.
Find a solicitor: You’ll need a solicitor before you can make an offer on a property.
Solicitors are responsible for putting in the offer, negotiating and checking the contract as well as organising the transfer of the Title and money.
Home Report and survey: Before marketing the property for sale, sellers have to arrange a Home Report to show to buyers interested in their property. This must include: Energy Performance Certificate ( EPC) - this reveals how energy efficient the property is and where improvements could be made.
Survey – an assessment by a qualified surveyor from the Royal Institution of Chartered Surveyors ( RICS) pointing out the condition of the property, where repairs are needed and a valuation of the property.
A mortgage valuation might also be included.
The level of information contained in the survey is broadly equal to the Homebuyers report mentioned below.
Property Questionnaire – sellers have to provide an accurate account of the property including its Council Tax band, any Local Authority notices served on it, alterations made, parking, any history of flooding as well as factoring in arrangements covering any repair and maintenance.
When you receive the Home Report for the property you want to buy, make sure to read it carefully as it will give you a good idea of the running costs of your new home.
You can also use it to ask the seller about utility bills.
Once you have a mortgage in principle, your lender will arrange for a mortgage valuation to make sure the property you’re buying is worth the price you’re paying.
And once you have the survey results, and are happy with what it says, you need to decide how much you’re going to offer.
The amount you offer will depend on: Property prices in the area; How much you can afford; Any competing interest in the property; and
Anything else you wish to be included in the offer such as fixtures and fittings.
Your solicitor will do this in in a formal letter.
If there are several competing bids, the seller’s solicitor will open them at the same time on the closing date and ring your solicitor to tell you if you’ve been successful or not.
You might wish to wait until your offer is accepted before having your own survey done, in which case you make your offer subject to survey.
If your offer is accepted, the seller’s solicitor issues a qualified acceptance, which means that the property will be yours if contract details can be worked out.
The solicitor will also hand over information about the property such as the title deeds and planning papers.
Go through everything you receive with your solicitor as they might raise queries about the paperwork. Neither you nor the seller is committed yet.
Once all the contract details have been agreed, the two solicitors exchange letters.
These letters are known as ‘ conclusion of missives’.
Both parties are now legally committed to the sale.
After your offer has been accepted, the sale will be completed on the date of entry agreed with the seller.
If you are selling: Summer is an ideal time to sell your home according to regional property experts who say correct pricing and kerb appeal can help to clinch a quick sale.
Other advice includes taking care when choosing an estate agent and decluttering the interior to maximise space for a potential buyer.