|
STEP
ONE: Agreeing a price
When your offer price is
accepted it is not binding until contracts are
exchanged, which means that someone else could
have a higher offer accepted (gazumping) at any
time until then.
In Scotland the
rules are different. A normal case involves a
property being put up for sealed bids, to be made
by a due date, all of which are binding. Buyers
make suitable survey and mortgage arrangements and
make a bid on that basis. The seller then chooses
a suitable bid and the deal is binding. (The
highest offer may not win, as the seller may
accept a lower offer from someone who binds to
complete in a short time. Sometimes other
conditions may be stipulated by the seller, or
offered in the bid ).
STEP
TWO: Getting the mortgage
The usual
requirements are for:
- A regular income
in a permanent job
- If you're
self-employed, 3 years' accounts to prove
earnings.
You should be able
to get a mortgage of up to 95%, up to a limit of 4
times salary.
If you don't fit into either of these categories,
then you should be talking to IT Contractor Mortgages.
It's likely you'll need a deposit of at least 10%.
The value of the house is considered to be the
purchase price or the valuation - whichever is the
lower.
The lender will organise a survey to satisfy
themselves on the value of the security. If the
property is old, of unusual construction or
possibly in need of repair, you should commission
a structural survey.
STEP
THREE: Conveyancing
You will need a
solicitor to do the conveyancing and searches.
Their job is to ensure that the property does not
have any nasty surprises, ( e.g. the isolated
dream cottage where title does not allow for
access for services like electricity and plumbing,
or someone else has rights to part of the land, or
that there are restrictions on building extensions
and garages etc.).
The solicitors fee
will include elements for the charges levied by
the various governmental departments involved.
Who's
who and what they do
The solicitor
acts for you on the legal side.
The
estate agent is interested in selling
properties. As such he normally has access to a
wide range of lenders and can make all the
mortgage arrangements. Most of them are tied to
one insurance company however which limits their
ability to provide a fully competitive service.
The bank
or building
society. Going direct is normally a waste
of good shoe leather as the offers are normally
the same as those available through other sources,
and you only see a very small number of the
options. Most are also tied to one source of
insurance and this again can cost over the odds.
Ready
to apply?
|
