Complete Guide to First Time Buyer Mortgage | London Mortgage Advice

July 29, 2021 by in category mortgage in London tagged as , , , with 0 and 0

Buying a house is one of the most significant decisions, especially for first time buyers. It is imperative that you know the process, your rights, and your responsibilities to make the whole process nice and easy.

In today’s blog, you will find the most effective first home buyers guide that will enable you to close the best deal.

Set a realistic budget according to cities and locations within. The prices vary with a great margin. For example, prices in London are high, so the prospective buyers must set a realistic budget to buy an average house in a good neighbourhood. The average price of a home was £249,000 in January 2021.

1.Mortgage Broker

Times are tough to get mortgages. So, ensure you have access to financing before you start looking for a house. It is usual to get a place on a mortgage. So, hiring the services of a broker is common, who can work for you as your mortgage guide, and it is worth it.

A mortgage broker has access to all the mortgages on the market. Most mortgages in the UK are at a fixed interest rate. In many cases, after two or three years, the loan must be renegotiated.

2.See Houses

With clear priorities in mind, start visiting houses and take notes of all their characteristics, including the price. You need to see a lot to be sure that you are investing in the right property. Everything seems expensive if you are not familiar with the market. At times, you may think that you are being ripped off.

3.See a Estate Agent

Estate agents perform home rental and purchase operations. So, involve an estate agent since contacting the property owners directly is practically impossible. Nothing is done without intermediaries since the market is very professionalised. At times, buyers don’t get to meet the real owner even when buying the house.

4.Gazumping

Gazumping is a period that elapses from when the buyer makes the offer until the seller formally accepts it. There is no economic exchange, but there is a kind of gentlemen’s agreement. During this time, the seller may continue to receive offers or raise the asking price. Thus, gazumping places the buyer in a certain helpless situation. To avoid gazumping, you need to speed up things at your end.

5.Home Inspection

It allows you to check the condition of the house before buying it. The home inspector will examine the heating, roof, windows, boiler, walls, and insulation condition.

6.Solicitor

A solicitor is vital in the home buying process. He or she takes care of all the paperwork and transfers the money from the buyer to the seller. So, you do not go to the notary to exchange the property and sign dozens of documents. Everything is done virtually through the solicitor.

7.Exchange

The first stage of the purchase is materialised through the exchange of money. Generally, the buyer contributes 10% of the amount of the operation. With this step, the purchase is sealed. The reversal of either party will have a financial impact. At this point, negotiate the final points of the mortgage with your lender or bank.

8.Closing

The closing is carried out by making the remaining payment. The solicitor handles all the paperwork and sends the money from the buyer to the seller. Now, sit back and wait. With the help of this first time buyer guide, you have become a proud owner of a house at your desire location.

London Mortgage Advice Ltd is authorized and regulated by the Financial Conduct Authority for residential mortgages and non investment insurance business.

Although London Mortgage Advice Ltd is regulated by FCA, commercial mortgages and most buy-to-let and offshore mortgages are not regulated by the FCA.

THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

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