Whether you’re a first-time buyer or looking to purchase a new property we know there are many questions to be answered. We’ve compiled a list of frequently asked questions that crop up at Wigwam on a day to day basis to help guide you in your purchase.
1. How much can I borrow?
The amount you can borrow varies from person to person based on your income and the size of your deposit. It’s a good idea to get an Agreement in Principle (AIP) from a mortgage advisor, as this will give you an idea of your affordable price range and you can then start viewing properties that fall within your budget. Our mortgage advisor can give you the best of all market advice.
2. When do I need to pay the deposit?
The minimum deposit required when purchasing a property is 5% the deposit is paid to the seller’s solicitor upon the exchange of contracts a few weeks prior to the purchase completion. Many lenders deposit requirements and people’s individual circumstances can vary hugely, which is worth bearing in mind.
3. How much will Stamp Duty cost?
Stamp Duty is a tax paid by the buyer when purchasing a residential property over £125,000 (for investors or second home buyers this is subject to a further 3%). The percentage amount of Stamp Duty varies depending on the price of the property and can range anywhere from 2% to 12 %. Stamp duty has to be paid within 30 days of the sale completion.
4. How and when do I get the keys?
Once both parties have signed the contracts a completion date will be agreed. Once the seller’s solicitor has confirmed the receipt of the funds and the transaction has been completed the estate agents will be able to confirm when you can collect the keys to your new property.
5. Do I need a survey?
A survey is not a legal requirement, however it’s highly recommended to avoid any hidden problems which could later be costly, let alone for peace of mind. There are a range of surveys that are recommended, depending on the property and circumstance:
A Homebuyer report- A homebuyer report is an inspection of the property which highlights the condition of the property and reports any defects.
Building Survey-This is a detailed survey that can include tests of drainage and utilities - a useful survey if you’re thinking of building or extending.
Mortgage valuation- The lender may request a mortgage valuation to be assured the property is comparable to the loan value.
If you have further questions on your property journey contact a member of the friendly team at Wigwam Homes.