By the time I was ready to purchase my first property, I thought I had a solid idea of what the house buying process entailed. But, as it turned out, the entire process was far more complicated than I could ever have imagined. Besides getting to grips with the house searching, deposit saving and various legalities, there were a few other things that I learned along the way:
- The first mortgage payment may be higher
Always be mindful that the first payment may be higher than anticipated. This is because your first monthly fee may include the previous month’s payment and interest. If you took out your loan part way through a month, you may find that your payment is rolled into the following month, creating a higher fee.
For example, let’s say your mortgage is due on the 1st of July at a rate of £1000 per month. If your mortgage funds were released before this, on the 20th of June, you will pay the interest for the period of 20th– 30th June in the July repayment.
- You can ask the seller to purchase items within the property
There’s no harm in asking the vendor if they are willing to sell any items within the property and, obviously, within reason! A home is put on the market for all sorts of intentions, which could include downsizing or emigration. Therefore, you may find that the seller is happy to part with some items.
It is important to clarify which fixtures and fittings are included in the sale. Fixtures (items that are attached to the property) such as radiators and built-in wardrobes are nearly always included in a purchase. Fittings (items that are not attached to the property) such as curtains, washing machines and mirrors are less likely to be included. You want to get a clear picture of what the seller plans to leave behind to avoid any issues. I am a huge believer in ‘if you don’t ask, you don’t get so if you need a washing machine, ask if they are willing to sell theirs.
- You may be entitled to a council tax exemption
If you are planning to refurbish your property, then you may be eligible for a council tax discount or even an exemption. The property will need to be classed as uninhabitable and / or be undergoing major repair work or, structural alterations. To apply, you will need to notify your local council. The property must be unoccupied during this time and usually applies for a maximum of 12 months.
- Check whether your bank has a daily transfer limit before arranging payment of your deposit
When the time comes to transfer your deposit, you do not want any unnecessary hold-ups. Always check to see what your daily transfer limit is, with your bank, beforehand and arrange for an increase or separate payments, should you need it.
If you are about to start, or are currently going through the property purchase process, speaking to others who have been there can help you make the right decisions. Buying a home is a costly and time-consuming process and knowledge sharing with others is key! Have you purchased your first home? What tips can you share to lighten the load for new buyers?