Purchasing your new home
There are thousands of different mortgage products available in the UK. It is hardly surprising therefore that deciding which mortgage is right for you, when you are moving house can be a challenging task. Mainstream lenders and smaller lenders have different calculations, fees and criteria. We can help find the right mortgage for you. We not only have products available to the public we also have access to exclusive products only available through mortgage professionals.
High Street banks and smaller lenders understand the importance of using a broker, with some only accepting mortgage application if this has been advised by someone known to them and who is accredited by the financial conduct authority. As independent advisers we are registered with every lender, this helps us to find and advise on the most suitable mortgage for you. We work with you, for you to find the most appropriate mortgage that suits your own needs and requirements.
Good Mortgage Solutions will liaise with the estate agents/builder, solicitors and the surveyor to ensure the purchase transaction is as smooth as possible. We help to ensure that purchasing your new home is as straightforward as possible and will answer any queries you have regards the process and the mortgage terms by drawing on our experience and knowledge both of which we are keen to share with our clients.
Not yet found the house you want?
It is good practice to have an agreement in principle (AIP) or decision in principle (DIP) in place before looking for a new home.
What is an AIP or DIP?
AIP or DIP is the initial contact with the lenders. From the basic information a lender will give you a certificate to confirm they would be prepared to lend you the money. This is not a guarantee as they have not assessed any documents only obtained a credit score.
What is a credit score?
A credit score is supplied from a credit reference agency. The lenders use these scores to give a profile on the possibilities of them lending to you.
How much does it cost to speak to a broker and achieve an AIP?
Nothing. Most brokers will not charge for the initial meetings. Good Mortgage Solutions do not charge for any meetings and these can be done at a time and place to suit you. Even out of office hours.
How long does it take?
From the initial meeting we can normally have a decision from the lender within 24/48 hours.
Found the perfect home?
Now let us help you find the right UK mortgage for you.
What happens when you find a house?
Once you’ve found a home you want to buy you need to make an offer, usually via the estate agent marketing the property. The estate agent works for the people selling not the people buying. The sellers pay the estate agent not you. If the offer is accepted, you will need an AIP or DIP from a mortgage company. When this is produced to the estate agent, the property status should change from “for sale” to “sold subject to contract”.
Once your offer has been accepted by the seller the process begins.
• A mortgage valuation will be needed. This is often just for the mortgage lender and although you pay for this, it lets the lender know the independent value of the property. Some lenders will complete this free but typical costs are £150 - £500 depending on value of property.
Other survey options are available.
• Homebuyer’s report – this is a much more detailed survey, looking thoroughly inside and outside a property. It also includes a valuation. If you are choosing this option, you should see if you can get the valuation and homebuyer’s report carried out at the same time to cut costs. Typical cost is £400- £800.
• Building or structural survey – this is the most comprehensive survey and is carried out for an older or non-standard property (for example, if it’s made of timber). Typical cost is £800+.
If you have no problems with the valuation and the application, then the lender will produce a mortgage offer. This normally takes around 14 days. After the offer is produced the solicitor will start the next part of the process.
The solicitor needs to complete a number of searches. Local Authority, Drainage and Bankruptcy searches. Other fees would be Money Laundering, Land tax form and Land registry fee. The costs change depending on the local authority. When these searches are completed you can exchange contracts.
At this stage both parties are committed to the sale. If you pull out after you have exchanged contracts you will lose the deposit.
Once you’ve bought your home, known as completion, you will have to pay several bills.
• If you don’t have a mortgage and are a cash buyer, you’ll need to pay the remainder of the purchase price via your solicitor.
• You’ll need to pay any removal fees if you’re using a removal company.
• You’ll need to pay your solicitor’s bill at this stage, minus any deposit you’ve already paid.
Buyers also need to pay Stamp Duty (official name Stamp Duty Land Tax) on completion and your solicitor will arrange this for you.
Stamp Duty fees.
£0 - £125,000 – NO stamp duty
£125,000 - £250,000 2% stamp duty
£250.000 - £925,000 5% stamp duty
£925,000 – 1,500,000 10% stamp duty
£1,500,000 + 12% stamp duty
If you will own another property, either residential or buy to let. You need to increase the stamp duty by 3% i.e. 0-£125,000 you must pay 3% stamp duty £125-250,000 you pay 5% etc.
Buying your first home
Buying your first home is the biggest purchase you will have ever make. You will be committing to a loan for anywhere up to 40 years. The estate agent is paid for by the people selling the property not by the people buying.
A mortgage professional and solicitor are both working for you the buyer. So finding the right professionals to help you is as important as finding the right house.
At Good Mortgage Solutions we work with you, for you. We project manage the process and keep you informed every step of the way. You will not only have an adviser to speak to but also dedicated admin support who can help you with all the documentation you receive and give you regular updates in writing and over the phone so you can track the purchase effectively. We have found over many years of doing this the importance of keeping you up to date with the progress. We can send all documents to the estate agent, help you to value the property before making an offer. Also securing the mortgage and liaising with the solicitors until exchange and completion.
Help to Buy
HTB is a government backed incentive to help people on to the housing ladder. The HTB scheme is split into 2 incentives.
HTB - Equity Loan
For new build properties bought from the builder. You need a minimum 5% deposit. The government will lend you up to 20% of the property value interest free for 5 years. For the first 5 years you will pay a monthly management fee of £1 per month. This continues until the loan has been repaid in full. After 5 years you pay an admin fee 1.75% per year on the outstanding amount owed on the equity loan. From the 5th anniversary you start to pay interest on the equity loan of RPI + 1%. This is interest only, so you are not repaying any of the loan balance.
HTB – Mortgage Guarantee
You need a minimum 5% deposit. It is basically an insurance policy that the lender pays not you. This is set up for the lender and NOT you the buyer. Not all lenders subscribe to the mortgage guarantee but mortgages may still be available with a small deposit without using it.