Alleviating the Pressures of Purchasing a First Property

two people the process of signing a document

Buying a home is a very emotionally stressful experience and using a broker to alleviate the pressures involved can be helpful. The pressure involved in buying a property may be induced by the following factors of purchasing via Help to Buy (HTB):

·        Obtaining your Authority to Proceed

·        Having a valuation done

·        28-day exchange period

·        Paying your searches fees

At Hawke, we will be able to help you with all of the above and give impartial advice where we are not affiliated with a particular developer. The advice given is based on your best interests. We have highlighted these particular areas as we commonly come across them while dealing with HTB purchases and we have specialist brokers who can assist you with managing the process.

Obtaining your Authority to proceed

At the same time as submitting your mortgage application you will need to apply for your ATP. This is the approval from HTB that you are eligible for the government equity loan. To achieve this you have to navigate the processing with Help to Buy which is a part of the process we will assist you with.

It is particularly important that all of the documents you obtain match up with one another so the Reservation Form, UK Finance Disclosure Form and the Property Information Form all reflect exactly the same information.

We have brokers on hand that are dealing with Help to Buy and we assist with the application for the ATP. Gathering the relevant documents can be stressful as this is where mistakes can appear.  For example but not limited to; not including the full address correctly; differences between the required forms around costs such as service charge; wrong address or miss spelling of solicitors.

These, amongst other scenarios where the build and completion date are not included, are frequent. It is only when you are exposed to the process that you can identify these issues that will invariably slow the process down for you in obtaining your ATP.

Valuation

We are unlimited to first charge intermediary lenders and have extensive experience in dealing with them on a day-to-day basis. We can give you a sound indication of how long it will take to have a valuation booked in and this is sometimes demanded by agents to be carried out within seven days.

We will then help you with the outcome whether it be positive or negative and most importantly establish whether it is wise for you to invest in the property.

Instances which we see are paying a large sum of money for a magnificent new property, however, the new build warranty provider is only acceptable to a handful of lenders. In addition to this, there are circumstances where the property is above a commercial premise which limits the lender availability. With both of these examples, limitations become apparent when it comes to the ability to resell the property and this has a direct impact on you and your investment.

Choose Hawkes Financial Services for Your Mortgage

If you have experienced any of the above or would like to establish your purchase capacity, please call one our fees free brokers at Hawke to help with your property aspirations. You can contact our Help to Buy specialist broker, Adam Hollidge directly on 0208 660 8613 or 07453574724.

Mortgages Using the Help to Buy Scheme – It’s All in The Affordability

small wooden houses representing purchasing property

Purchasing a first home is an exciting and nerve racking process all wrapped into one and the  Government’s Help to Buy initiative is an incentivising way for first time buyers to get onto the property ladder. Establishing which home and mortgage is right for you all lies in the affordability of the property. In addition to this, there are a number of variables to factor in when considering using the Help to Buy scheme. Here, we provide insight into the Help to Buy scheme and the Mortgage Comparison Table that we use when helping you to secure your mortgage.

What are the variables of the Help to Buy scheme?

Variables are inclusive of:

·        Your salary and household income

·        Unsecured credit commitments

·        Service charge and ground rent of the property

·        Equity loan monthly repayments

With further considerations of:

·        Your age affects the achievable overall length of the mortgage, otherwise referred to as ‘the term’

·        Your deposit amount available – which can be more than 5%

·        Which lenders will consider your income most favourably – this is an area we can establish for you as we are unlimited to first charge lenders, we can approach

Finally, with all variables being considered, can you still borrow enough, or do you need to compromise in some way to achieve your overriding objective?

Property expectations dependent upon household income

In our previous Help to Buy blog, we established how the Help to Buy scheme can help you and now. The image below is a visual representation of various levels of income and what the property expectations would be for each tier of financial investment.

* All based on a term of 30 years; £150 service charge; 5% purchaser deposit only; 20% equity loan.

The narrative this portrays is that based on the various levels of income, there should likely be a home out there that is available for you to purchase. Although, considerations around the duration of commuting to work and distance from friends and family may mean that you decide to hold on until your income or deposit increases, in turn expanding your value capacity and the property you can choose from.

Our process for your initial mortgage application

Considering your scenario, we would run through a Mortgage Comparison Table for whichever is most applicable in order for you to consider all avenues and ensuring the most cost-effective means of purchasing a house was achieved. An example of our Mortgage Comparison Table is below:

We can assist you with your Help to Buy mortgages

Ultimately, the key thing to review when looking to invest in the Help to Buy scheme is the best option moving forward that enables you to purchase a new home with confidence and positivity. Our mortgage brokers at Hawke Financial Services would be happy to run through your mortgage enquiry and inform you of the details of the Help to Buy scheme. Get in touch with us today to speak to Adam Hollidge, our Help to Buy specialist.