Buying a house is known to be one of the most stressful transactions people go through as it is certainly one of the largest purchases most people will make in their lifetime. For first time buyers, purchasing the home of their dreams and securing a mortgage can be even more daunting as they navigate the various legal hoops they must jump through. Instructing a mortgage solicitor in London can take some of the stress out of this process. Their experience and specialist knowledge can ensure common pitfalls are avoided.
A mortgage solicitor in London will walk buyers through each stage in the purchasing process and highlight areas of concern.
Before even embarking on a house hunt, there are several questions that first time buyers in particular should ask themselves:
Do I have sufficient funds to cover a deposit?
At the very least a 10% deposit is needed, with most first time buyers saving up for a 10-20% deposit. The larger the deposit the greater the choice of cheaper mortgages available.
Do I have sufficient funds to cover the other costs?
The deposit and impending monthly mortgage payments aren’t the only costs involved in purchasing a property. Other costs include stamp duty land tax, survey costs, solicitor’s fees, buildings insurance, initial furnishings and decorating costs.
Are any government schemes applicable?
Consecutive governments have rolled out different plans to help people get on the property ladder. It is therefore worth looking into whether any of the current schemes apply to you i.e. the Help to Buy schemes. This can help reduce the costs of getting on the property ladder.
What kind of mortgage is the right fit?
There are two main kinds of mortgage: a repayment mortgage, where the capital and interest are paid off on a monthly basis and an interest-only mortgage, where only the interest is paid off each month and the whole capital needs to be repaid at the end of the mortgage term.
For first time buyers struggling to secure a mortgage, a guarantor mortgage is another possibility. This legally binding agreement means that another party, such as a parent, guardian or close relative, will pay the mortgage in the event that the buyer is unable to.
For further advice and legal counsel, a mortgage solicitor in London is a good person to consult.