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Please send us your questions, comments and suggestions concerning property, or the articles in First Time Buyer magazine.
lynda@ rsttimebuyermag.co.uk
LIFETIME ISA I am currently looking at the best way to save up for a deposit to buy my first property. I have seen the Lifetime ISAs being mentioned a few times, but what is it and will it benefit me in my quest to gather my deposit? Sarah Brambert FTB says: A Lifetime ISA (Individual Savings Account) helps first time buyers save for their initial home purchase by offering a 25% Government bonus on savings, up to £1,000 per year. It allows tax-free growth on savings, with a maximum annual contribution of £4,000. Funds can be used towards a property costing £450,000 or less, as long as it’s purchased with a mortgage. While withdrawals are allowed at any time, penalties apply if not used for a qualifying reason, such as buying a first home. It’s a valuable option for those aiming to get together a deposit, but consulting a financial adviser is recommended to ensure it aligns with individual financial goals.
TWO YEARS OR FIVE YEARS? I am stuck between whether I should take out a two-year or a five-year mortgage on my first home. Do you have any advice about which to consider? Holly White FTB says: Deciding between a two-year or five-year mortgage really depends on factors like interest rate projections, budget stability and future plans. It isn’t something we can recommend either way as everyone needs to make their own choice based on their own judgement and advice.Two-year mortgages often offer lower initial rates, potentially saving money if rates are expected to rise, while five-year mortgages provide stability with fixed payments over a longer term.You also must consider any penalties for early repayment and how your future plans may impact your mortgage needs. Assessing your financial situation, risk tolerance and, probably most importantly, consulting with a mortgage adviser can help you make the right choice and, in this case, is the best thing you can do.
The Traitors took over our TVs earlier in the year; now this issue’s star letter prize winner can step into the gripping world of the popular BBC show in their own home with The Traitors Card Game. Absorb yourself in the ultimate test of trust and treachery! Each player is given a role, with one unlucky individual handed the poisoned chalice and tasked with secretly becoming The Traitor. Can you deceive your fellow players into believing that you are really one of the Faithful?
DISBURSEMENTS Having saved up a deposit I am now going through the conveyancing process. My conveyancer has mentioned something called disbursements but I’m not sure what they are or what they mean. Any help to save me the embarrassment of having to ask about them would be greatly appreciated! Mark Ruforch FTB says: Disbursements during the conveyancing process refer to the various expenses incurred by solicitors or conveyancers on behalf of their clients (in this case you) during the property transaction. These expenses are separate from the fees charged by the solicitor for their services
VISIT OUR WEBSITE For everything you need to know about buying for the rst time, go to rsttimebuyermag.com Even though it might seem embarrassing, do ask about the specifics of your deal. They should be more than happy to explain these costs to you. and typically include costs such as search fees, Land Registry fees, Stamp Duty, bank transfer fees and any other expenses related to obtaining information or documents necessary for completing the property transfer. Disbursements can vary depending on the specific requirements of the transaction and the location of the property.
Ideal for family gatherings, get-togethers and dinner parties, this entertaining game accommodates 4+ players aged eight and over. Traitors Card Game, £11.99, available on Amazon
EPC RATING While I know what an EPC rating is, I’m not sure as to why it is so important when considering buying my first property? I have been warned to keep away from any property with a low EPC rating, but why? Thomas Xi FTB says: An Energy Performance Certificate (EPC) rating is vital information when purchasing your first home as it indicates the property’s energy efficiency, affecting your future
running costs, environmental impact, and potential property value. A higher EPC rating (A or B for example) suggests the home will have lower energy bills, reduced carbon emissions and potentially increased property value. Understanding the EPC rating helps you budget accurately, minimises environmental impact, and may save you money on future energy- efficient upgrades, making it an essential consideration in your homebuying process.
First Time Buyer April/May 2024 7
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