Buying your first property can seem daunting and complicated. However, with Rachel at Vivid Finance and this guide you could soon be moving in to your new home! Give Rachel a call on 01733 232249 or email her:
1 KNOW YOUR BUDGET
Collate your paperwork (payslips, bank statements, identification) and speak to us to find out how much you can borrow and what you can afford.
2 FIND YOUR MORTGAGE
Based on your credit score and finances, we research the market to find the best mortgage products for you. We then gain an Agreement in Principle (AIP) from your chosen lender
3 MAKE AN OFFER
Find your ideal property (if you haven’t already) and with your AIP in place you can make an offer. Once accepted, we will help you complete your Full Mortgage Application
4 Instruct a solicitor
We can also help you choose a conveyancing Solicitor to handle all the legal paperwork, all the required searches (local authority, water & drainage and environmental) and liaise with the sellers solicitors.
5 PROPERTY CHECKS
Your Lender will require a valuation on the property and you can order your own survey to check its condition as it could reveal potential problems.
6 MORTGAGE OFFER
If everything is in order your Lender will issue you an official mortgage offer. You have seven days to decide if this is the right product for you.
7 PROTECT YOURSELF
Make sure you have buildings insurance, critical illness cover and mortgage payment protection insurance in place.
8 COMPLETE & EXCHANGE
Your solicitor agrees a completion date for you and contracts are signed and exchanged. Your solicitor will manage the transfer of funds from your Lender to your seller’s solicitor.
9 FINAL LEGAL STEPS
Your Solicitor registers the sale and you must pay all the associated fees. Your stamp duty payment must be made the next 30 days.
10 YOUR NEW HOME
Now the legal process is complete, you are the proud owner of a new home and can collect your keys. Congratulations!
It’s amazing how easily your day-to-day outgoings mount up.
Did you know …..
1 It costs on average £11,040 a year to raise a child until they’re 21.
2 It cost around £6,072 a year for a part-time nursery.
3 The average household spends £1,341.60 a year on gas, electricity and other fuels.
4 The average household credit debt is £6,757.
How would you pay your regular outgoings if anything happened to you?
To find the best way to protect you and your family, talk to us today on 01733 232249 or email Rachel@rgl-ifa.co.uk
1. www.lv.com Cost of a child report, 2016.
2. Average cost of a child under 2,25 hours a week, www.daycaretrust.org.uk Childcare Cost Survey 2016,
3. www.ons.gov.uk January 2016.
4. www.themoneycharity.org.uk, figures for 2015 March 2016, published in May 2016.
Did you know the paper £5 note will no longer be legal tender after the 5th May??
The Bank of England issued a new polymer £5 note on 13 September 2016 which will replace the £5 paper version from 5th May 2017.
Don’t panic, most banks, building societies and post offices will exchange these for you until the 5 May 2017. After this period, if your bank, building society or even post office decides not exchange the paper version, you can exchange the note in person with the Bank of England in London.
Here’s a few security features to check the authenticity of the new note:
• A clearly defined portrait of the Queen is printed on the see-through window with the words ‘£5 Bank of England’ printed twice around the edge
• The border of the window changes from purple to green when the note is tilted. This can be seen on the front and back of the note
• A silver foil patch which changes from ‘Five’ to ‘Pounds’ when the note is tilted, and a multi-coloured effect appears
• A silver foil patch containing an image of the coronation crown which appears 3D. When the note is tilted a multi-coloured rainbow effect can be seen
• The printed lines and colours on the note are sharp, clear and free from smudges or blurred edges
• When running your finger across the front of the note you can feel raised print in areas such as the words ‘Bank of England’ and in the bottom right corner, around the number ‘5’
You may have noticed that interest rates are quite low. In fact they are the lowest they have ever been. Why should you take notice of this? Well, the lower the interest rate, the cheaper your mortgage can be. Here I’m going to talk you through why and how you can take advantage of this:
1: When you take out a mortgage, you pay a deposit. The bigger that deposit, the cheaper the mortgage deal. Over time, your mortgage decreases as you pay off the capital, and (hopefully) your house price increases over that time. So, now you have a house with a higher value, and a smaller mortgage (known as loan to value or LTV). If you originally had a 10% deposit on a £100,000 house (90% LTV), when you purchased, you would have got a fairly high interest rate on your mortgage. If you now have an £85,000 mortgage value, against a house worth £150,000 (75% LTV), you will find that the mortgage deals available to you are considerably cheaper – the rate can be nearly 50% less! This means you can either pay less per month, or keep the same payments and pay off the mortgage quicker!
2: You probably got a deal when you took out your mortgage – normally a fixed rate for certain period of time – either 3 or 5 years typically. This deal is usually below the banks normal rate, known as the Standard Variable Rate (SVR). When the deal comes to an end, you get put back on the SVR. This means your payment goes up! A typical 2 year fixed deal is around 2.5-3%, whereas SVRs are anywhere from 3.99-5.25%. If you combine this with the reason in method 1, you can see that you could get a much better deal.
3. If we assume both 1 & 2 are happening, you may find yourself in a position where you could be saving a lot of money, and you have increased equity in your house. You might want to use that money to make home improvements, pay for a big event, or consolidate existing debts. You can re-mortgage to take the extra money out of your house, possibly on a better rate than your existing deal.
If you think you might benefit from a cheaper mortgage, then speak to us, your independent mortgage adviser who can give you all the options and talk you through process.