THINKING ABOUT BUYING YOUR FIRST HOME? CONGRATULATIONS!
If you’re buying with William Davis, our sales team will talk you through all the details and considerations. However, you might like to have more information before you decide.
Below we’ve rounded up 5 important things to think about if you’re buying for the first time, especially those you might have missed. Let us know if there are any more you think we should include!
1. Choosing your mortgage
Mortgages can seem really complicated, and you might find it difficult to get your head around the options.
There are lots of good websites that allow you to compare different deals, and sites like Money Supermarket are packed with useful information. However, if you’re still unsure, consider using a mortgage adviser. They have the best understanding of the market and will know where to look to get the best possible deal.
2. Stamp duty
First-time buyers are no longer charged stamp duty on homes up to the value of £300,000.
If you’re investing in a larger home or buying in a more expensive area, you’ll need to pay stamp duty on the value of the home above £300,000. When buying with William Davis, just have a chat with the sales team to see whether this will apply to you and, if so, how much you can expect to pay.
3. Help to Buy
The Help to Buy Equity Loan can help you to spread the costs. If you’re eligible, the government could lend you up to 20% of the cost of your home, with the rest covered by your mortgage and deposit.
The scheme is designed to make buying a new build home easier by bringing down the costs upfront. You won’t have to pay any interest on the loan for five years. After that, there will be a yearly fee of 1.75% of whatever you have left to pay. Repayment will be needed when your mortgage ends, when you sell your house, or within 25 years – whichever comes first. The amount you’ll need to repay if you sell your home will be based on a percentage split of the value of the house.
Really simply, Part Exchange is where we buy your current home to get you moving more quickly. It means you don’t have to search for a buyer or go through the stress of selling your home, making the whole process quick with 5 steps;
1. Find your William Davis home 2. Independent valuations with help from our facilitator 3. Offer on current home and agreeing the sale 4. Normal buying and selling with no chain 5. Moving in and exchange day
5. Additional costs
You’ve already considered the cost of your deposit and mortgage. What else will you need to think about?
Make sure you have money set aside for things like searches, a valuation, mortgage arrangement fees, bank transfers and additional legal agreements like a declaration in trust. Don’t forget solicitors’ fees! Luckily with William Davis you won’t need to pay for a surveyor; our homes come with a 10-year NHBC guarantee.
MoneySavingExpert has a brilliant, in-depth guide to all the costs associated with buying a home here.