Buying a home is an investment in your future – but when you do it for the first time, it can feel really daunting. Considering the doom and gloom we hear every day on the news, it may seem particularly risky to take that next step. That’s why we asked Censeo Financial, our recommended Independent Mortgage Advisor, their thoughts on the benefits of buying a home right now, rather than waiting.
A blog by Censeo Financial
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Approximately one million people are left without broadband for over a week when moving home. While that doesn’t sound very long, if you’re remote working, home schooling or stream your TV instead of watching live, a week can seem like forever!
A little forward thinking goes a long way to make the transition as smooth as possible, especially if you’re a first time buyer. Read on to find out all you need to know about broadband and moving home, as well as the service we provide in our homes at Pocket Living.
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Did you know that a deposit is the biggest thing you need to save for in the home buying process? This can seem a bit daunting if you’re a first time buyer, especially if you’re not sure how big of a deposit you need or how to save for a deposit.
We’ve put together the ultimate guide on first time buyer mortgage deposits to get you on your way to homeownership, written especially with middle income earners in mind. Covering why a deposit is so important and what to do if you haven’t saved enough, this guide will help you put together a plan for saving for your first home.
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Taking out a mortgage to buy your first home is one of the biggest – if not the biggest – financial decisions you’ll ever make. But it’s also one of the most rewarding. Finally, after saving for so long and renting in the city you love, you get a place to call your own.
Having said that, you have to go through the mortgage process first, which can be really confusing. With jargon and paperwork coming at you left, right and centre, understanding what it all means can be a lot to get your head around.
In this blog, we’re helping you get to the bottom of your most pressing questions about first time buyer mortgages, including offers, withdrawals, extensions and the best lenders.
Not to be confused with a mortgage in principle (MIP), also known as an agreement or decision in principle, your mortgage offer is what you’ll receive from the lender after they’ve approved your application.
Your mortgage offer includes details like:
You’ll usually receive your mortgage offer two to four weeks after submitting your application. To prevent any delays in the application process, it’s important to make sure all the information on your application is accurate, and you provide the relevant paperwork, including:
Your lender has the right to withdraw the mortgage offer at any time up to the completion date. There are several reasons this could happen, including:
A mortgage offer is valid for a set period – usually up to six months – but this varies depending on the lender. If completion doesn’t take place within the time specified in the offer, the lender may withdraw. But there is a way around this (more on that below), so you won’t necessarily have to reapply.
Your lender will carry out credit checks as part of the mortgage process. This includes a ‘hard’ search after you submit your application and before you receive an offer.
Afterwards, they may conduct additional checks to make sure your credit hasn’t changed significantly. If it has, due to missed payments or new debts, the lender may decide to withdraw your mortgage offer.
The lender will also conduct due diligence to make sure your property purchase is above board, like checking that there’s no fraud and that your funds are from legitimate sources. This is why it’s so important to be completely honest on your mortgage application; any discrepancies between the information on your application form and the supporting documents could cause the lender to withdraw the offer.
Sometimes, unexpected things happen, and circumstances change. For example, a job redundancy or drastic changes to your monthly outgoings. Depending on the severity of the situation, it could result in changes to the mortgage terms or withdrawal of the offer.
Sometimes, further conveyancing checks on the property bring to light issues not originally flagged. For instance, flooding issues or structural damage, which might result in the lender withdrawing the mortgage offer.
The process of buying a home can be long-winded and complicated. There will inevitably be bumps in the road, from construction delays (if it’s a new build) to legal hold-ups. Don’t worry, though, because mortgage lenders understand this and, in most cases, are happy to extend a mortgage offer beyond the initial agreed period. The length of the extension will depend on the lender, and they may request proof of bank statements to check your financial circumstances haven’t changed since the original agreement.
We recommend contacting your mortgage advisor or lender directly if you want to discuss an extension of your mortgage offer.
The best mortgage lender for you depends entirely on your financial circumstances. In the first instance, it’s always wise to speak to an Independent Financial Advisor (IFA), as they can guide you through every step of the process, from finding a lender to completing your application.
We recommend using Censeo Financial as an IFA when buying with us, as they know exactly which lenders offer mortgages on Pocket homes.
Hopefully, you’ve found this guide to mortgage offer withdrawals and extensions helpful. For more information about stepping onto the property ladder, check out our first time buyer guide, which details the process of buying a Pocket home from start to finish.
If you’re not quite at that stage but still interested in owning your own home, create a My Pocket account to check your eligibility, register for available properties and stay up to date on our latest developments.
When the Government announced the First Homes policy, Pocket Living welcomed the ambition. The premise of the policy is identical to what we have been doing for years, namely opening up homeownership to young middle earners by selling at a discount.
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The onset of the pandemic in the spring of 2020 quickly lead to the withdrawal of low-deposit mortgages, as property valuations ground to a halt and lenders looked for ways to manage business levels.
Over the last 12 months, the market has gradually opened up again, and the budget announcement in March saw the Government confirm its intention to support the housing sector by increasing the availability of 95% mortgages.
Here, we have broken down how the government’s mortgage guarantee scheme works.
First time buyers may qualify for a stamp duty exemption, with some getting a reduced rate and some not having to pay the tax at all. We know the ins and outs can be a bit confusing, so we’re breaking it down for you to understand how much you can actually save.
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If you rent, deciding whether to take the plunge and buy a property is probably the biggest decision you’ll ever make.
For many people, the decision will be swayed by what’s affordable to them. In most areas of London, average monthly rents are actually higher than mortgage repayments, making buying a better option (as long as you can afford the deposit).
Everyone’s circumstances are different, but if you’re struggling to decide whether it’s better to rent or buy in London, we hope this article will help inform your decision.
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