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WHAT IS A FIRST TIME BUYER? I was wondering who actually qualifies as a first time buyer? Are there specific requirements that rule you in or out? Emily Davis
SURVEYS I am a first time buyer so I have never had any experience of buying a home before. I know that I will need to have surveys done on the property that I am purchasing but why do I need them and what surveys do I need? Daniel Parish
FTB says: A “first time buyer” is legally defined as someone who has never owned any residential property anywhere in the world. This means you cannot have previously owned a home (with or without a mortgage) or any buy-to-let property. Inherited properties also count, so even if you’ve never personally purchased a home, inheriting one disqualifies you from being considered as a first time buyer. It’s also important to remember that you’re only considered a first time buyer if you’re purchasing a home to live in yourself. If you’re buying a property to rent out or as an investment, you won’t qualify for any first time buyer perks. Additionally, if you’re buying with someone else and your partner has ever owned a residential property, it could mean losing some of the benefits that first timers typically receive.
FTB says:You should have a survey on the
property to help you avoid hidden problems that could be costly in the long run. It will be your property, so it’s in your interest to pay for a decent survey at this stage. It can also help you in renegotiations, if a major issue is highlighted. There are several types of survey available: RICS condition report – a basic “traffic light” survey and the cheapest. It’s most suitable for new build and conventional homes in good condition. No advice or valuation is provided in this survey. RICS homebuyer report – suitable for conventional properties in reasonable condition. This is a much more detailed survey, looking thoroughly both inside and outside a property. It also includes a valuation of the home. Building or structural survey – this is the most comprehensive survey and suitable for all residential properties. It’s particularly good for older homes or homes that might need repairs.
This issue’s star letter prize wins a bundle of Christmas goodies worth £27.30 from rexlondon.com. Perfect for your Christmas festivities, there is a red glass candleholder, £9.95, which will add a lovely pop of colour to your dining table; a double-ended red glass candle holder which can be placed either way up to accommodate a taper candle or a tealight, £6.95 and a pack of two twisted candles, £5.95. Ideal for that special lunch or dinner, there is also a
WHAT IS LOAN-TO-VALUE I am hoping to buy my first home soon and I’ve been doing a great deal of research. Could you tell me what loan-to-value means and why is it important? George Peck FTB says: Loan-to-value (LTV) is a formula or ratio used by lenders to measure the amount of borrowing needed against the value of the property (determined by a RICS valuer, not the price paid).When looking for a mortgage, products will have an LTV that you will need to meet, and the LTV ratio can affect the interest rate on offer. The bigger your deposit, the lower your LTV ratio might be. Having a lower LTV often means you have a larger deposit, improving the chance of being offered a lower interest rate that
VISIT OUR WEBSITE For everything you need to know about buying for the rst time, go to rsttimebuyermag.com will mean you will have cheaper monthly mortgage payments. If you have a larger deposit, reducing the loan-to-value to say 75%, lenders may view you as a safer option than someone with a 95% LTV as you will borrow a smaller percentage of the value of the property. Although it is tempting to put all your savings into the deposit, remember you’ll have legal costs, mortgage arrangement fees and moving costs, so you need to keep some money back. It’s best to speak with an experienced mortgage adviser who can advise on the best mortgage for your personal situation and goals.
pack of retro Christmas napkins featuring a lovely 50s inspired design, £2.95, and a pretty straw star decoration, £1.50, to hang on your tree. rexlondon.com
JOINT MORTGAGES I am struggling to save enough for a deposit by myself. I have two friends in a similar situation as me. Is it possible for us to get a three-way mortgage? David Parsons FTB says: Getting a mortgage with friends is possible. Normally you can take out a joint mortgage with one friend, although some lenders will allow up to four people to be on the mortgage application. Everyone is responsible for
the mortgage repayments. For shared ownership, all applicants must qualify for the scheme and must meet the maximum regional household income cap. It is very important when buying with friends that you all get legal advice and have some form of legal agreement in place between yourselves as this is a big financial commitment and circumstances may change. It is always best to speak to a specialist solicitor and a mortgage broker to go through the options available.
First Time Buyer December 2024/January 2025 7
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