If you’re dreaming of owning your own home but have no idea where to start, or could do with a helping hand along the way, you’re in the right place.
Buying your first property can be both exciting and daunting, which is why your local Beewise mortgage advisor is on hand from start to finish throughout the whole process.
With years of experience in the housing and mortgage market, we’re like the human version of Google for homebuying – with accurate and up-to-date advice you can trust!
This month’s blog post answers the questions we’re regularly asked by first time buyers and homemovers alike.
Just because you’ve bought a property before, doesn’t mean you’ll remember the process, plus the mortgage and housing market changes all the time.
Got a burning question we haven’t answered, or simply want to chat with one of our friendly advisors? Contact us now for personalised mortgage help instead.
We’ve won local and national awards for our approachable advice, and have 325+ 5 star Google reviews, so you’re in good hands. Here’s just some of the ways we help as standard:
• Accurate borrowing calculations, with maximum lending from the mortgage market
• Securing a mortgage in principle – often within 24 hours of getting your paperwork
• Advice on how much to offer, potentially helping you save thousands!
• Guidance on which mortgage, fixed deal and term suits you best
• Recommending trusted solicitors we’ll chase up regularly for you
• Seeing your mortgage through to completion with help at every step
• Keeping an eye on interest rates, and switching if they reduce
• Evening and weekend support via phone call, text, email or in person
Read on for the answers to your top 10 questions on buying a home!
Where do I start and how much can I borrow?
Technically two questions, but they’re the ones we hear most so thought we’d sneak them both in!
Firstly, where you do start? Contact Beewise! We’re different from other mortgage advisors and mortgage brokers, as we’ll put you in the best position to start looking.
We don’t just find you the most suitable mortgage deal once your offer’s accepted, we’ll go through all those initial steps, including how much you can borrow.
We’ll break down homebuying step-by-step, talk you through the costs involved, what you need to do when, and be your point of contact throughout so you don’t have to remember it all.
Right from the start we’ll do accurate calculations on how much you could get for a mortgage, and find out which banks or building societies will lend the most, as each one is different.
And we’ll get you a mortgage in principle with a lender, meaning you’re credit checked, pre-approved, and ready to make an offer on that dream home once you spot it!
If you’re still in the early stages of buying and just want advice, we’re still happy to do that as it gives you something to work towards.
For instance, you might be able to borrow the amount you wanted and more, but if the monthly payments are more than you’d budgeted, you’ll be able to review your buying goals.
Or, you might want to save more towards a deposit once you know your mortgage potential, or need to do some work on your credit file to get it where you need it.
We’re firm believers you should start this process as early as possible, as it gives you the knowledge you need when you do start looking at properties.
All too often people offer on a home after doing calculations themselves, or getting their own mortgage in principle online, and they’ve lost out as the figures were wrong.
By using a trusted expert, you can be confident you’re not only getting the right information, but that much-needed support throughout.
How do I improve my credit score?
You might not need to improve your credit score, but we’d always recommend getting a copy of your credit report if you’re thinking of buying so you can check.
Sometimes there can be issues you didn’t know were there, such as a missed payment, or even defaulted payments if you’ve moved home and didn’t realise a bill was outstanding.
Or, it could be as simple as the correct address not being across all your accounts. This could cause issues with a lender, and getting it right now is a quick fix.
If you do have anything negative on your credit report, we’ll happily chat through how to get that resolved.
And, if there’s anything major, such as a default or CCJ, don’t worry! We work with specialist lenders who’ll still offer you a mortgage, so you’ll usually have options.
By understanding what your credit profile looks like at an early stage, you’re putting yourself in the best possible position to buy a home.
Your Beewise mortgage advisor will be happy to have a look over the report, as they can be confusing. And we’ll let you know how to improve it, such as getting on the electoral roll.
A common myth is that getting a credit card is a good way to improve your score, but if you’re thinking of getting a mortgage, taking out new credit is definitely not recommended!
For personalised advice on improving your credit score, email Beewise or give us a call on 01934 204 841.
Can you offer under asking price?
Good question! This is another one we’re always asked by buyers, as once you know the maximum price you can go to, you’ll want to check if there’s wiggle room at that higher end.
The answer is, it depends. There are so many factors that can affect this, such as the area the property’s in, the price bracket you’re looking at, and more.
Generally it comes down to demand for that house or flat, as if six other people viewed it that weekend and three put forward an offer, it’s less likely you’ll be able to negotiate lower.
It’s not out the question though, and your Beewise mortgage advisor will be on hand to help to with this! We’ll know your local market inside out, and work with local estate agents too.
This means we can often get that extra intel, letting you know what we think you’ll need to put forward to secure it.
If a property’s been on the market for a while, hasn’t had much interest, or if the sellers are eager to move, you’ve got a better chance of offering under asking price.
We’ve heard people say you should offer 5-10% less than the property’s listed for, but honestly, there isn’t a hard and fast rule for this – it’s more about sense checking the situation.
While the final decision will always be yours, as industry experts we’ll put you in the best position by giving you all the information you need, including price comparisons in that area.
Beewise don’t just save you money on your mortgage, we could save you thousands on buying your home before you get to that point!
Are there things I need to look out for when viewing somewhere?
Wondering how you’ll know if work needs doing on a house you like? It’s always worth looking for obvious things such as damp and cracks on walls and ceilings, inside and out.
And it helps to open windows and doors to check they work, turn lights on and off, and generally get a feel for how up together a place is.
However, you won’t spot everything, and if you don’t feel confident doing this, don’t worry – a surveyor can do this on your behalf and report back with their findings.
Your local Beewise mortgage advisor will advise on property survey options once your offer’s accepted, so you can access expert advice before you commit to buying if need be.
Depending on the property type and age, you can opt for an in-depth Homebuyers Survey, or a full Buildings Survey, both flagging any current or potential problems.
And, if the survey comes back worse than expected, or reveals expensive work that needs to be done, you can decide if the work’s within your budget, and if you’re happy to take it on.
You could potentially renegotiate the purchase price too – something your Beewise advisor will help with. Or, worst case scenario, you could decide not to go ahead with the purchase.
This doesn’t happen often, but it’s good to know you’ll be able to get a clear picture of a property’s condition, and have options if it’s not what you originally thought.
If you’ve already offered on somewhere and haven’t had a survey done, give us a call on 01934 204 841 and we’ll happily recommend a surveyor we work with in your area!
How much deposit do I need for a mortgage?
Generally, you need to put down at least 5% of the property’s purchase price as a deposit, but there are even options out there where you pay 0% deposit.
If that’s something that appeals to you, give us a call on 01934 204 841 to chat to your local Beewise mortgage advisor today.
As to the amount you can put down, there isn’t a set figure you should be aiming for. But, if you’re able to put down a bigger deposit, you could have access to better interest rates.
However, getting on the property ladder is the most important thing, even with a smaller deposit, as you’ll be paying money off the mortgage each month no matter what the rate.
If you’re currently renting, you’ll be paying 100% interest! So, it makes financial sense to buy a property sooner, rather then trying to save a bigger deposit.
This is why we recommend talking to a Beewise mortgage advisor. We’ll discuss your situation, letting you know whether saving a bigger deposit would make a huge difference.
Can I use my Help to Buy ISA bonus for the deposit?
There are two different government initiatives to help you save for a home, a Help to Buy ISA and a Lifetime ISA.
Help to Buy ISAs are no longer available to open, but if you already have one you can pay in up to £200 a month, and get a 25% bonus – up to £3,000 – when you buy a home.
Lifetime ISAs are still available, and you can pay in up to £4,000 yearly until you’re 50. On this, you’ll get a yearly 25% bonus – up to £1,000 – meaning you can save and earn more.
There are pros and cons for each though. For example, you can’t use a Lifetime ISA until 12 months after the first payment. So, if you opened one now, you’d have to wait a year to buy.
But you can use those savings as part of the deposit for your home, whereas the Help to Buy ISA funds aren’t technically available to you until the purchase completes.
There are two stages to owning a property, exchange and completion. Exchange is where it becomes legally binding, and completion’s when it’s finalised and you get the keys.
Your deposit needs to be paid ready for exchange, so you’re fine if you have a Lifetime ISA.
However, some solicitors – including the ones we work with – will account for the fact the Help to Buy ISA funds are paid on completion, and let you use them towards legal fees.
To find out more about the Help to Buy ISA or the Lifetime ISA, give us a call on 01934 204 841, or click here to email us.
How much are solicitors’ fees when buying a property?
Conveyancing fees, so the cost for the legal work involved when buying somewhere, can vary depending on the property type.
Buying a flat generally costs more than a house as there’s more involved. This is because you’re buying the leasehold, and the conveyancer has to deal with this and the freehold.
If you’re not sure of the difference between leasehold and freehold, don’t worry – lots of people aren’t! Give us a call on 01934 204 841 or email us and we’ll be happy to explain.
Buying a new build will also cost more, as again, there’s more work involved, such as registering the property with Land Registry for the first time.
You might also have to pay stamp duty to the solicitors on top of your fees, a tax owed when you buy somewhere over a certain price – currently £425,000 for first time buyers.
We’re here to advise on all of that though, and we work with solicitors that are super efficient, quick to reply, reliable and helpful – basically worth their weight in gold!
The firms we use are competitively priced, and it’s worth remembering you get what you pay for. So, if a company seems like they’re offering a bargain, there’s generally a reason why!
You might have problems getting hold of them, hold ups throughout the process, or it could be that certain costs don’t show on their original quote, making the final price much higher.
The conveyancing process can be a huge stress point when buying, so getting the right person with good communication is key.
Your local Beewise advisor will check in with your solicitor on a regular basis for you, keeping you updated right through to completion and saving you months of hassle.
And we’ll let you know costs from the outset so you can budget accordingly, but it can be anywhere from under £2,000 to £3,000 depending on the circumstances.
What are the next steps once my offer’s accepted on a property?
This stage can feel overwhelming, as there’s lots to put in place – confirming details with the estate agent, instructing solicitors, arranging a survey, sorting the mortgage and more.
Luckily, your local Beewise advisor takes care of this! We’ll also sort personal insurance to pay your mortgage in the event of long-term sickness – click here for more on that.
We’ll talk you through each stage of the homebuying process, but here’s a handy blog post going into it in more detail.
If you’ve had an offer accepted and done it on your own up until now, email us or give us a ring on 01934 204 841 and we’ll step in to save you time, stress and money until completion!
What’s the timescale for buying a house or a flat?
This is another tricky question that doesn’t have a definitive answer, as it completely depends on the property and the situation.
The solicitors firstly review the initial contract from the seller’s solicitors to see what needs querying, then they carry out local authority, environmental, water and drainage searches.
Searches usually take 2 or 3 weeks to come back, but others can be up to 6 weeks, particularly if they’re complicated or the local authority is busy.
Solicitors also request and review several forms from the seller, including details such as boundaries, past building work, planning permission, and ongoing disputes with neighbours.
And, if you’re purchasing a leasehold property – generally a flat – they’ll need to review the lease, and the management pack if the building is managed by a third party.
Timescales depend on how long it takes for paperwork to be sent from other solicitors, for people to reply to enquiries, and for all solicitors involved to go back and forth on any queries.
It’s not unusual for completion to take around 6 months, especially if you’re relying on other people in the chain buying and selling, or if issues come up along the way.
But it could be quicker, and may only take 3 or 4 months to buy your property if everything’s fairly straightforward. If you’re lucky, it could even be less than this!
One major benefit of using Beewise is that we’ll regularly check in with your solicitors, chasing up anyone we can along the way, helping to speed that process up for you.
When should I give notice on our rental property?
Once you’ve had your offer accepted, got your mortgage in place, and the solicitors are doing their thing, it’s natural to wonder when you should tell your landlord.
Most people want an overlap between getting the keys for their new place and handing back the old ones, allowing you enough time to move out and do a final clean.
If you want to give your landlord a heads up you can, but we wouldn’t recommend giving your notice until you’ve exchanged, as this is the point when the purchase is legally binding.
Up until this point, estimated dates and deadlines could change, or the sale could even fall through, so it’s better to wait until you’re 100% certain.
When you exchange, everyone agrees a date for completion. So, you could choose to have a gap of two or three weeks, giving you enough time to tell your landlord then move gradually.
Looking for more advice? Contact Beewise!
Your local Beewise mortgage broker won’t just save you time and stress on your mortgage deal, we’ll talk you through your homebuying journey with expert advice at every step.
To get in touch, click here or call 01934 204 841. We offer evening and weekend appointments, plus face-to-face appointments, video or telephone calls to suit you.
Award-winning and highly recommended, you’re in safe hands with Beewise FS Ltd. Check out our 325+ 5 star Google reviews here.
Looking for more expert advice? Check out these other helpful blog posts!
Please note some of these blogs may be older than 12 months and therefore the information contained in them may be out of date. Contact us direct for up to date information.
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