House Buying Tips



BUDGET FOR OTHER COSTS

Apart from your monthly mortgage payments, there are other costs when buying a home.

These include:

-Mortgage arrangement and valuation fees

-Stamp Duty

-Solicitor’s fees

-Survey cost

-Removal costs

-Initial furnishing and decorating costs

-Buildings insurance

 

DON’T ASSUME YOU CAN AFFORD WHAT THE LENDER SAYS YOU CAN BORROW

 

Whilst you should obviously find out how much you can borrow before you start house hunting don’t just trust what lenders say you can afford to borrow. You need to budget and work out what you can comfortably afford to pay while leading the lifestyle you want. Only view properties within your budget or you’ll end up being disappointed or breaking your resolve.

 

GET A MORTGAGE IN PRINCIPAL

Known as a MIP this is where a lender will provisionally let you know how much you can borrow (subject to finding the right property in a given timeframe). Proof of your deposit and a MIP can be a big advantage when putting in an offer on a property. Please be aware however, MIPs give no guarantees as they are subject to valuation, and your credit score not changing negatively.

 

BE AWARE OF THE TYPES OF PROPERTIES LENDERS CAN BE CAUTIOUS ABOUT OFFERING MORTGAGES ON

There are certain property types that many lenders may question, these include:

Short leaseholds-Properties on short leasehold means you only own it for a specific number of years. Leaseholds of less than 80 years can be a problem so look to extend the lease before you buy.

Brownfield sites-Properties built on former industrial land can be difficult as they might be contaminated. Your solicitor will need to check the certificates to prove the property has been decontaminated.

Flats over restaurants, shops or offices-Any property where other people may have the right to access your property.

Converted buildings-For example pubs, schools, windmills etc, these may need a mortgage from a specialist lender.

 

CHECK OUT THE LOCAL AREA/NEIGHBOURHOOD

 

It doesn’t matter how much you love the property, if you move in and discover the location just isn’t right there’s not a lot you can do. We would advise visiting the area at different times of the day, checking out the local shops, pubs, parks, schools and transport links. Is the area clean and tidy, or are walls covered in graffiti, litter in the streets. You can check crime rates in an area, even by street on this Police.uk website.