First Homes Scheme - discounts for First Time Buyers!!!

Have you heard of First Homes Scheme launched on 4th June?

From 4th June, new Government scheme has been introduced offering local First Time Buyers a discount of at least 30% of the market value!

The programme aims to support first time buyers, especially key workers like NHS staff or Veterans so there is a benefit to the local community for generations to come.

When the house bought under the First Home Scheme will be sold in future to another first time buyer, the same percentage of discount will be passed on to them.

These homes will be made available across the country with the first ones launched as a pilot in East Midlands.

It is fabulous news especially given the constantly increasing house prices!

Further information can be found here: https://www.gov.uk/.../discounted-homes-for-key-workers...

The Ins and Outs of Property Valuations

What is Basic Mortgage Valuation?

When you are in the process of applying for a mortgage, a lender will want to know that the house is worth the price you have agreed to pay for it and that it is in an acceptable condition to lend on it. They send a suitably qualified surveyor to check these aspects and do a report which helps them take a decision whether or not to offer. This process is called Mortgage Valuation.

Who pays for Mortgage Valuation Report?

Many lenders offer this report free of charge or for an agreed fee and if they do charge, then it is the buyer who will have to pay.

Will I get a copy of the report?

Usually, lenders keep it to themselves only, so buyers do not get a copy. It is a report that is done for the benefit of the lender to see if it is worth lending on the property.

What report can I get as a buyer?

As a buyer, it is recommended that you engage a surveyor to carry out so called ‘Home Buyers Report’. It is a more detailed document about the condition of the property.

How can a Homer Buyers Report help me?

Once you have done this type of report, you will have a more detailed view on potential future repairs and on existing condition that might cost you in the long run. This, in turn, can help you re-negotiate the price or take an informed decision on what value for money you are actually getting.

What does a Home Buyers Report check?

It normally looks at internal and external features of the property and checks things like heating system, drainage, water services, energy efficiency rating, roof, windows, damp, insulation etc.

How will I know something needs attention?

Homebuyer’s report is colour coded so if anything is marked amber or red, should get your attention as it will indicate there is an issue that might be faulty or in need of repair.

Do I have to do Home Buyers Report?

No, it is not obligatory or required by lenders, but it is recommended if you want to know more about the condition of the house you are buying.

Who pays for this report?

You, as a buyer will need to pay for it, and its cost varies so best get a few quotes to compare.

Will I get a copy of this report?

Yes, you do get a copy of this report, but you don’t need to show it to the lender.

When should I consider a Building Survey?

This type of report is usually recommended to be done on older or larger properties or the ones that you plan to do major building work on. This is the most detailed, most comprehensive and most expensive survey done out of the ones mentioned here.

Where do I find a surveyor qualified to carry out a Home Buyer Report or a Building Survey?

Some lenders offer discounted price for surveys done by their designated surveyors so you may want to discuss this with your broker or, if a lender you are using doesn’t offer this option, then you will find a suitably qualified surveyor under this link: https://www.ricsfirms.com/

We hope you find this article helpful and if you have any mortgage or house-buying related queries, do contact us and we will be happy to help.

how important is the property and local area in a house buying process?

Would you believe that a lender can refuse to mortgage a house if they have already offered on too many in the area?... Yes, it really can happen!

Lender does a post code search and they can decide that they have so called ‘overexposure’ in the area and so they will not want to take any more risk there.

Overexposure is often an issue on new build development sites and it is very frustrating! But it may also happen for older properties where lender sees too much risk in the particular area and they simply stop offering there.

There are many aspects related to property where even the most perfect case scenarios can go wrong.

A very important factor is the condition of the house you will be buying, whether it is in a habitable and approvable condition.

Also, if property is of a non-standard construction, or if it is in the area where for example there were mineshafts historically, a lender may refuse to mortgage on it.

Best thing you can do is to discuss the property you are buying with a broker who will have access to lenders offering on even the quirky builds or construction types.

Don’t think the only aspect of your mortgage offer is around your affordability! Property plays an important role here too.

If you have any questions, contact us for help.