Financial Guidelines
When you buy a property, you need to be sure that you will be able to afford it now and in the future. Part of our responsibility is to help you work that out. If you are looking to buy a shared ownership property the percentage of the property you buy will be determined by what you can afford.
Our services are free to people who are eligible for them. But, you will need to arrange a mortgage. My4walls can put you in touch with an independent Mortgage Advisor to help you.
We recommend you ask an independant expert to help you arrange your mortgage. Please see list of independant mortgage advisers below:
T.T. Finance & Mortgage Services
Terry Teasdale
Tel: 0113 282 6082
Mobile: 07506 073 432
Emial: teasdaleteas@talktalk.net
Mortgage Talk
0800 996 1111
www.mortgagetalk.co.uk
Dedicated point of contact:-
Scott Richford
srichford@mortgagetalk.co.uk
t: 01709 381042
m: 07980 002165
Reach 4 Mortgage Solutions
Peter Chandler
t: 07710 633241
Share to Buy Ltd
Stephen Dwelley
t: 0845 686 0812
m: 07768 914505
When arranging a mortgage, remember:
- use a reputable lender such as an established bank or building society
- we may refuse certain mortgage lenders if their interest rates or the term of the mortgage are not considered realistic over the long term
- self-certified mortgages are not acceptable
- interest only mortgages must be supported by an investment plan to repay the capital loan
- we cannot accept mortgage offers that offer further borrowing without consent.
How much will buying a house cost?
Your earnings and any savings you have will dictate the size of mortgage you can apply for. The bigger the mortgage, the higher your monthly repayments. (Mortgage rates can vary and the cost of your repayments could go up or down.) But, the bigger deposit you can pay, the less your mortgage could be. You will also have to pay for a survey or a mortgage valuation on the property and there will be legal fees and stamp duty to pay (if the cost of the property exceeds £125,000 NB If you are a first time buyer then the threshold for stamp duty is £250,000.)
To help you work out the amount you should be able to afford to repay we will put your income aand outgoings into an affordability calculator. This calculation is based on the Government’s recommended method and is
for guidance purposes only. Details of the affordability criteria and an example of the calculator can be found by clicking on the link below:
<A href="http://cfg.homesandcommunities.co.uk/affordability-calculator-and-guidance.htm">http://cfg.homesandcommunities.co.uk/affordability-calculator-and-guidance.htm</A>
Remember that if you are asked to pay a deposit, and you choose to do so, it is at your own risk.
What are the monthly costs if I buy a home?
Every month you will need to pay:
- mortgage repayment to your mortgage lender
- rent to the housing association (only if you have bought through Newbuild HomeBuy)
- any service charge or management fee for services to communal areas (such as in flats/apartments)
- bills such as water rates, gas, electricity fees and council tax
- buildings insurance.
You will also need to instruct a conveyancer to carry out the legal purchase of your home. You can obtain a free quote from the following solicitors listed below:
Richardson & CO. Solicitors
Richard Black
Tel: 0113 243 1714
richard@richardsonlaw.co.uk
Levi Solicitors LLP
Matthew Rodd
Telephone: 0113 244 9931 (switchboard)
mrodd@levisolicitors.co.uk
Remember that your home may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it. House prices can go down as well as up.
Helping you make the most of your money - a message from the Homes and Communities Agency
The Money Advice Service
Whatever the situation with your finances, it’s good to know you’re on top of things and are making the most of what you have. The Money Advice Service is here to help. It offers clear and unbiased money advice and information to help you make the most of your money, whatever your circumstances – and it’s free.
About the Money Advice Service
The Money Advice Service is independent and unbiased so it won’t recommend any particular products or try to sell you anything. It was set up by government and is funded by a levy on the financial services industry.
You can access their services in three ways:
Online – www.moneyadviceservice.org.uk
The HCA believes everyone proposing to buy their own home and obtain a mortgage should be aware of what they are taking on, and what they can afford.
You should also have continued support after purchasing and the Money Advice service can offer that support by providing you with the tools to assess your financial health on an on going basis, work out priority payments such as your mortgage, and obtain help and support if your circumstances change and you need some extra advice.
The tools available through The Money advice service can also help purchasers if you are thinking of staircasing or paying back you second charge or just want to reassess your situation.
For further details and to find a link to the Money Advice health check tool, click on the link below.