Buying a home is a strategic decision that entails the choice on the whole or most of our lives. I would like to focus today on the topic like – buying a house in the UK, how does look like such a purchase, what should you remember the transaction was correct, where is best to purchase a house or whether buying a house is a complicated transaction. I will present here some important tips that will guide us through this process – I hope that thanks to them everything will be transparent and clear.
How to invest, i.e. a purchase of a home in the UK, step by step
The first and basic step that needs to be done in order to buy a house is to check how much money we can borrow. Therefore, it is best to contact with your broker or chat with representatives of different banks to get an idea of how much money you can borrow for a given real estate (depending on how many houses we want to buy, one for yourself or maybe two, one for yourself and one for rent). The help of broker will of course pay the extra expense, but thanks to the guidance we get probably the most advantageous offer i.e. – the mortgage. Secondly, you need to consider payment of your own, for this purpose you should consider how much money we can pay to the bank in the form of a deposit. Here you want to point out that the larger the amount, the better it is, but you should consider also that we need to leave yourself some extra cash, which will cover the costs related to the transaction:
- The fee for the services of a lawyer
- The fee for the services of appraisers
Successively in order to the purchase of a house in the UK was the right choice, we need to check your credit report. Great idea can also to check our credit rating on the mortgage (more on loans you will learn from the article, which you can find under the title: Loans in the UK). If our documents will include information had a burdensome effect, we need to know what needs to be improved before we go to the bank to ask for a loan (you should improve your credit rating. The current rating you can check for free, for example, in checkmyfile. It will not be a surprise that mortgages are the most popular form of gaining money, which later we have to give them very carefully, so before taking a loan it is best to deal with the already mentioned earlier credit report – you can check it for free using the services of one authorized agency, example – checkmyfile.
Then we need to know for what the house we are looking for, before we proceed to search the hundreds of available ads for the sale of the property. Here, first of all you should consider whether looking for a house with a garage, with a garden, what number of room, etc.. It is also important to determine whether your house has to be free-standing and perhaps living in new or old buildings? It is good to define the area where you want to live. Of course, questions like – how far is it from your place of work or in the neighborhood there are good schools, which will be able to attend your children, whether the house is located in a well-communicated with the rest of the city place – is the key to buying a house in the UK was a pleasure and ,,not torture”.
The next step to buy a home in England without a problem is to start the search using multiple sources. Remember that many websites may reserve the exclusive right to offer, because in this case we have to use several of them. Do not forget that a lot of commendable offers we can still find in the newspapers. When we find the desired house, which we are seriously interested, we arrange an appointment to see it. Obviously, the more listings we look, the better – here it is worth noting that during the visit we should not hesitate to ask a lot of questions. Once again, the argument here works – the more we know, the better. The agent who urges us to buy a home in the UK, which we are interested, should provide all the answers to our questions. Finally, it is the moment to make an offer. If we have chosen the right house, let’s put an offer – we can try and even we should negotiate the price. When we want to be sure that no one can cap us, then it is better to offer a correspondingly high price. When our offer is accepted, we make sure that the announcement of the sale of the property was removed, sequentially our lawyer should contact the broker and begin to settle the formalities related to the mortgage.
Now, the bank, which will give us a mortgage, will order you to perform basic survey of the technical condition of the house that there are no problems. Buying a flat or house in the UK, you should always carry out a comprehensive survey of the property – thanks to it, we will have no problems with the bank, but also it will ensure that the purchased house is all right. I will note here that after the house research, when several deficiencies are found, we can always renegotiate the price. When all the formalities will be completed successively, the moment of exchange of contracts will approach and we will be asked to pay a deposit to the bank. Then you will find out the official date of completion of the transaction. The next and final step is to carry our move – we can contact the company organizing the move (if we have such a need). In this regard, we must remember that unfortunately the move comes at a cost – so it’s best to take this into account when planning the budget. You should also remember about home insurance (remember that before buying insurance you should compare various offers such on websites such quotezone or confused). It is best to choose an insurance policy that will provide us with a full safety – mortgage in the UK with a proper policy it can be paid immediately after the destruction, theft of property etc. Therefore, it is best to check that offers of many insurance companies are worth attention and find the most advantageous policy.
House prices are still tragically high – whether this is the end or the beginning of the disaster?
Conclusion of the transaction is then, when our lawyer replaces the relevant documents with a lawyer contractor. In this case, we get the keys from a real estate agent and the house becomes our property, and we can calmly start moving and enjoy your new home or apartment. Even in the previous year more rules for checking credit capability of person seeking a loan for a flat in the UK. Experts from the very beginning predicted that the changes will cause destabilization in real estate prices and although the price of apartments and houses did not change, the mortgage is more difficult to obtain. The growing demand for homes affects such a situation. Today less people get a mortgage, but the number of applicants is much higher than in recent years, so the experts point out that the market is not yet the worst. Currently, the average income of a home purchase in the UK is close to 281 752 pounds, which means that they are only about 30 pounds lower statistics from the record that was set in 2014. We see that soon a purchase of house in the UK will be possible only at very high income, which is not very comforting. Here, I remind that Shipside, director of Rightmove said that mortgages to buy homes in the UK always contribute to the fact that home prices are stabilizing for a while. Shipside also stressed that soon the situation that is pertained to a purchase of a house in the UK is likely to get worse by the growing demand for houses and the lack of suitable properties on the market. .
English statisticians have observed that the demand for a purchase a house in England is so big that real estate agents barely cope with their work. The published statistics indicated that only in the first two months of this year the agents received up to 8 million questions about buying a house. It was also noted that people looking for a house in the UK like to have a big choice and browse through the various offers and this is not surprising, because the decision to purchase a home is often the most serious financial decision. Another threshold by which it is heavily infiltrate are the conditions on the mortgages – the fact is that they are provided through low prices, however, the problem starts, when buying a house in the UK will prove to be so expensive that the loan will pay off by many, many years …. Experts today noticed another problem, which is worth mentioning here. More and more elder people are buying houses, just to hire them. They want here to become investors and make money on having this type of house or apartment, what’s more – usually these people are ahead of the people who join the real estate market, which puts them at a great disadvantage. So the question type – how to buy an apartment in the UK, the answer is not so simple, the problem is that there is the lack of houses, which are interested in not only people who want to get an apartment buying a property, but also investors. This is certainly an issue that affects many locations across the country. At the end I will mention that the problem also lies in the fact that banks usually prefer to give option – to give mortgage in the UK to an investor than a private person buying a house to live in it. Bankers are confident that the transaction is subjected to much smaller risk . Therefore, it is difficult to say when house prices in Britain will rise again – but you can be sure that the record of 2014 years will be defeated.
State aid for buying a house – subsidy up to 6 000 pounds!
Now I will talk about state aid to those willing to purchase a new house. Namely taking out a mortgage on an apartment in the UK, we are forced to pay to the bank a certain sum of money, usually it is usually about 20-25% of the purchased property. The obvious problem is that not everyone is able to collect so much money, therefore Government of the United Kingdom comes with the help! From what the government recently announced, that is the possibility of obtaining financial resources that will be used to deposit. To win money, you must first put away your savings in a special account – ,, help to buy ISA “. For all saved money the state will make 1/4 of the contribution – for example, having 200 pounds we will get 50 pounds from the government. The program will start in autumn this year. This aid can benefit everyone who lives in the UK and plans to buy and the most important point here – ,,first home “. To get an apartment in the UK just you must create an account Help To Buy ISA and start to accumulate money allocated for payment of your own. Here another surprise, if we are married and we want to buy a house, we can open two separate accounts and get money from the state! Financial support from the state must not exceed 3,000 pounds per person. Therefore, when we postponed 12,000 pounds on the account Help to buy ISA, it will get even 3,000 pounds from the government for one person (in case of marriage the amount will be to 6,000 thousands divided by half – 3,000 thousands, the account of spouse, 3,000 thousand, the account of wife). Another point to benefit from the financial support is to choose a house, which price does not exceed 250 thousand pounds, or 450,000 pounds in London. There is not the slightest importance whether the house was newly built if it comes from the secondary market. A person, who saves, will receive a bonus only when he/she decides to buy a property – but when he changes his mind and saved money spent on other goal, the government will not pay him money. Also another constraint was introduced, namely buying a house in the UK will be possible, then, if we save in a total of at least £ 1,600, then the state will contribute 400 pounds to this sum – this means that people intending to buy a home will be able to benefit from help after 3 months. Now we see how many limits and how much is assistance from the state. Buying a home in England as at the moment is quite profitable, provided that earnings as the mortgage in the UK, will be taken carefully, it means that our revenues will be adequate to the size of the loan.
If you are interested in the details of this program, see the Help to Buy ISA scheme on the government side.
Help to buy
This is another government program that helps in the purchase of the first property. Generally it consists in the fact that the government guarantees on deposit, which is required when buying a house by banks. The program is good for those who are not able to put a deposit but it is not perfect. Interests of housing loans in this case are higher and all in all it is not the best solution. Better is to save by two years and put on deposit and enjoy low credit. However, if this offer is interesting for you then please see the program from this page: helptobuy.org.uk
The total cost of buying a house in England
Now I come to the same prices in the UK. Of course, how much will we have to pay depends largely on the price at which we buy a house. At the moment – the average price of a flat in the UK is approximately £163 thousand. The price will also vary depending on the region and commuting. In the middle of England will be a price much more expensive (£374.568) turn to the north of the country housing will be much cheaper, because about £97 thousand. We must also remember about ,,stamp duty” tax -Here, its amount is determined by the price of the apartment itself. Here it is obvious that the more expensive apartment costs us, the more tax we have to pay.
I present here the following tax rates:
|nr||price of home||tax rate|
|2||from £925.001 to £1.500.000||10%|
|3||from £250.001 to £925.000||5%|
|4||from£150.001 to £250.000||2%|
Current tax rates can be found on this page: www.gov.uk/stamp-duty-land-tax/residential-property-rates
Currently, it is possible to buy an apartment without a lawyer, but it is so complicated that it is better to use his help. The price for this service is around £ 1,000 for simple transactions, with a much more complex fee increases. Successively we must deal with charge assessing the condition of the apartment, you should do it in order to detect a variety of hidden defects, it is not mandatory, you can do yourself, but it’s better to specialist scanned the entire building. Currently on the market there are two types of inspections of properties:
- Basic Homebuyer – general, it costs about £150
- Building Survey – more accurate, recommended for housing older than 40 years. The cost of this service is around £1000
summary – Buy home
To sum up my article, I can say that buying an apartment brings a lot of extra thousand pounds to be issued in the meantime, and the mortgage in the UK also needs to be adequately paid and secure. Therefore, before buying a home or apartment, it is proposed to consider a few important things: the price, the place where we want to buy a house, read a few guides how to buy a flat in the UK in order to not to make a mistake. Going this way let’s think, which loan I should take for an apartment in the UK and if the house is free from defects, the financial burden and so on. Only now we can calculate a budget for the purchase of beloved homes. And at the end I can mention that the fees that I have given above may vary depending on the provider – may also change with time of writing this article.