It’s no wonder buying a home is quoted as one of life’s most stressful events: high property prices, big deposit demands and a gloomy economy provide the current mood music for the biggest purchase you’ll ever make.
But it’s a new year and Spring has finally sprung so let’s look on the bright side: the mortgage market is looking more robust and sales are on the up.
According to a poll conducted by Rightmove securing a mortgage is the biggest stress point for aspiring homeowners, closely followed by crippling hidden costs (like surveys and stamp duty), and paying the right price for the property.
Michelle Youel, Mortgage Administrator at Lifetime, says: “There’s no doubt securing a mortgage is stressful. The days of 95-100% and interest only mortgages are almost gone. However, as a whole of market mortgage broker Lifetime can give advice on what’s out there. For example, if you’re struggling to save a deposit and your parents are in a position to help there are mortgage lenders out there who will be happy to accept a gifted deposit.”
But there’s more to it than mortgage payments. The hidden costs of buying a home featured as the third biggest worry in the survey. These can add 10% to your total bill so this is no time for ‘guesstimates’.
A little tip is to use your guide price as a basis to calculate stamp duty and for getting quotes: – for a solicitor to oversee the legal process; – for a survey; – for buildings insurance, which is compulsory; – removals fees; – and being clear about mortgage arrangement fees and any indemnity fees.
Getting the right price for a house is critical. Are you paying too much and wasting thousands of pounds, or have you underbid making it more likely you’ll be gazumped? Negotiating with Estate Agents can be nerve wracking: they are professionals doing this every day while it’s your first time and you’ll wonder whether you can trust what they say. Look after your interests by getting to know the local market inside out. Staying glued to what’s happening in the local property market can help you develop a feel for how much a certain property should sell for, as will a quick check on the Land Registry site. Remember sellers often put property on for 10% more than they would be prepared to accept. If your survey says critical works need doing then get quotes and use them to attempt negotiating the asking price down.
If you are wanting some help with getting a mortgage Lifetime are here to try to make it as stress free as possible.