Thu 19 May 2016
Buying your first home is one of the most exciting things you’ll do. It’s a great feeling to put your stamp on your very own place, but getting there can seem a bit scary. There’s lots of information to take in and big decisions to make.
Here we’ll guide you through the key steps to buying your first home and how we’ll support you throughout.
Saving for a deposit
The first thing to do is start saving for a deposit – this might seem a daunting task to begin with, but by making a few simple changes you’ll find the pennies soon start to add up. Could you walk or cycle to work rather than catch the bus or cut down on the number of takeaway coffees you buy each week?
What happens next?
With such a fast moving market it’s important to talk to a mortgage adviser before you start looking at properties.
Our friendly mortgage advisers will help you find the mortgage that suits you best and answer any questions you may have. We’ll talk through your outgoings and income and give you an idea of how much you can borrow – making sure your mortgage is affordable.
If you’re thinking of buying a property that’s a little out of the ordinary, we’ll be able to discuss that too. We’ll consider a range of family assisted options, including using a guarantor or taking a collateral charge on another property, that may help you buy your home.
During your appointment we’ll also explain to you the other costs you’ll need to consider and allow for as buying a house doesn’t just include how much the house costs.
Following your interview your mortgage adviser will produce a mortgage illustration and guide you through the important information about your recommended mortgage, such as the type and term of the mortgage, interest rates, cost of repayments and any fees.
When we’ve completed all of the checks and everything is fine, we’ll send your mortgage offer. This is a formal document confirming your loan has been agreed. It will include a full illustration of the costs and terms. A copy is sent directly to your solicitor who will be able to finalise your purchase for you.
Exchange of contracts
When your solicitor has completed enquiries about the property and confirmed the mortgage offer is right, you’ll be ready to exchange contracts. This is when you sign the contract papers, agree a date to take possession and pay a deposit to the seller.
Your contract is sent to the seller’s solicitor who sends back an identical contract, signed by the seller. This process commits you to buying the property. If you pull out after exchanging contracts you may lose your deposit.
We’ll confirm with you when we’ll be sending the funds to your solicitors. This normally happens one or two days prior to the completion date.
We’ll be there for you
Our mortgage advisers will guide you through the entire process, ensuring you get decisions and information as quickly as possible. We can keep you updated via text and email, so you know exactly what’s going on.
Of course, the story doesn’t stop once you’ve moved in. Life is always changing and your needs change too. We help all our borrowers through types of situations, from changing payment amounts or dates, to arranging additional borrowing. With a variety of ways to get in touch – at any time of the day – it’s now even easier for borrowers with The Cambridge to manage their mortgage.
Tips from the expert
Tracy Simpson, head of lending, said: “It’s really important for the lender and yourselves to make sure you only borrow what you can afford. The last thing you would want is to move into your dream home but then not have enough disposable income left to decorate it the way you’d like.
“If you have other debts that you are paying off, such as credit cards, these will be taken into account as will all of the other regular expenses you have.”
Simpson said: “Other costs you’ll need to think about include product-related fees, legal fees, valuation fees, stamp duty and removal costs. Not all will apply and will vary depending on your situation. For example, if the house you’re buying is less than £125,000 you won’t have to pay stamp duty and if you have friends and family willing to help out you might not need to get a removal firm to move your belongings.”
Want to know more?
See the mortgage journey from starting out to moving in and find out more about our experts who make it happen at cambridgebs.co.uk/home for more information.
Stephen Little in feature, housing. 20/05/2016, www.whatmortgage.co.uk
"To Roy and Jonathon Thanks for everything, you made it very easy"