Spring into spring
Mon 30 Apr 2018
Spring is the time of year that we dust off the winter blues and look forward to longer days and the return of sunshine. Traditionally spring also sees a boost to the mortgage market with potential buyers starting house hunts in earnest. If you’re considering a house purchase this spring, here are some hints and tips to help you through the process.
Consider your budget: Buying a home is an expensive business. It’s not just about getting a mortgage, you also need to consider the other costs associated with your move. Legal fees, surveys, stamp duty and removal costs are just a few so make sure you include these in your upfront budgeting. It’s also worth remembering the potential for rates to rise – a number of economists are predicting that rates will rise this year, which means mortgage interest rates may go up and this may impact what you pay each month.
Get a mortgage agreement in principle: Most lenders will offer a ‘mortgage agreement in principle’ – this confirms the amount you’ve specified to the lender which you believe you’ll need to borrow. This isn’t a guarantee to lending, as it’s subject to acceptance and completion of various checks and surveys. However, having an agreement in principle could give you an advantage when you’re putting in an offer on a property. You can research the mortgage market yourself but this can be very complex. Consider contacting a mortgage adviser who can help you find the deals you qualify for and guide you through the process. Police Mutual offers this advice for free, call 0800 652 8984 or enquire online to find out more.
And don’t forget… If you choose to take out a mortgage with a fixed rate, that deal will come to an end after the period specified by the mortgage provider. Before this happens, why not read our 'Guide to remortgaging' article for some useful tips.
Consider resale potential: If the property you’re buying is not going to be your forever home you need to consider how easy it will be to re-sell when you’re ready to move on. If a property has been on the market for a while think about why it hasn’t sold, is it the surrounding area or the layout of the property?
Get the correct survey: The mortgage company will request a survey of the property but this is only for lending purposes and will not give you a full view of the condition of the property. To protect yourself, you should consider obtaining either a more detailed homebuyer’s report or a full structural survey, which is the most comprehensive of the three. These reports are more expensive but they’re very detailed and any problems they identify may help you negotiate the purchase price of the property.
Arrange your home insurance: Before you exchange contracts you need to ensure that you have suitable home insurance in place – buildings insurance is mandatory for exchange. Shop around and get as many quotes as possible but remember to balance the cost of the policy against the benefits. Some of the cheapest policies may not offer the cover you need or have high excesses in the event of a claim.
We offer insurance to help you protect your home and belongings – to find out more and to get a quote click here.
Spring clean your finances: A mortgage is likely to be one, if not the biggest, financial commitment you will ever have. Buying a new home is a great opportunity to review your household budget and make sure you are getting the best value from your utility suppliers. Money Advice Service have some tops tips on cutting costs.
Should you move or improve?: If there is room for improvement, you might want to think about making changes to your current home rather than moving. Adding space can generally add value to your home. Do your research on what you might be able to add by speaking to local estate agents or looking at similar homes in the area. You may be able to fund smaller home improvements with savings but for larger projects you could consider talking to your existing mortgage provider about extending the loan or speaking to an independent mortgage adviser about a remortgage.
Police Mutual offers a free mortgage advice service, which provides access to the whole of the mortgage market and access to exclusive deals which aren’t available directly from the high street.
To find out more and book an appointment call the team today on 0800 652 8984 or enquire online.
Mortgage Excellence Plc (MEX), trading as Police Mutual, is registered in England & Wales No. 03527577. PMGI Limited (PMGI) trading as Police Mutual, is registered in England & Wales No. 1073408. The registered office for MEX and PMGI is Alexandra House, Queen Street, Lichfield, Staffordshire WS13 6QS. MEX and PMGI are authorised and regulated by the Financial Conduct Authority. For your security all telephone calls are recorded and may be monitored. Calls to 0800 numbers are free from UK landlines and mobiles.
Type of article: Articles
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