We get asked lots of questions, especially from first time buyers. Below are answers to some of the questions we’ve been asked by those looking to take their first step, or move up, the property ladder. And we’re pleased to announce that we’ve committed to OFFERING A £7.5K CONTRIBUTION towards your deposit* (subject to usual terms and conditions).
Q1. IS IT A GOOD TIME TO BUY A HOUSE? The general feeling in house building at the moment is very positive with a buoyant market and lots of sales. INTEREST RATES ARE AT AN ALL TIME LOW, MORTGAGE PRODUCTS are coming back onto the market and HELP TO BUY is a great scheme for helping to get you moving with only a 5% deposit. For further details about how Help to Buy works click here
Q2. IS IT BETTER TO RENT OR BUY? Everyone’s circumstances are different but when you buy a new home you are investing in it for the future, and quite often the monthly cost of a mortgage is less than the cost of renting. We’ve put together an example of a mortgage payment versus the rental cost of a 3-bed Petteril house type.
Q3. WHAT DEPOSIT DOES A FIRST TIME BUYER NEED? At the time of writing, most of the high street mortgage lenders require a minimum 15% deposit. However, if you use the Government’s Help to Buy scheme, this allows a 5% deposit, 20% loan from the Government and a 75% mortgage. The graphic shows an example of how this works and you can find our Help to Buy leaflet here
Q4. WHAT STAMP DUTY WILL I PAY? First time buyers currently don’t pay stamp duty up to a purchase price of £300,000 (the majority of our homes fall under the £300,000 mark). For second time buyers the rates are 2% for properties £125,001-£250,0000 and 5% for £250,001-£925,000 (based on you owning a single residence).
Q5. 6 TOP TIPS FOR SECURING YOUR MORTGAGE. Your credit rating is really important when it comes to applying for a mortgage. It is held by credit reference agencies such as Experian and lenders can find out about your credit history when they review your application. Want to get mortgage ready? Click here for our 6 top tips for securing a mortgage.