keys to a new home

Ensure you get Mortgage Approval with 6 Simple Tips

Boyd Rice

Before you begin searching for your dream home you should seek advice regarding your potential mortgage. This will give you a good idea of what you can afford and it will mean you can move quicker when you find somewhere you really like.

1. Use a mortgage broker

Not only will this save you hassle (you won’t have to check every lender yourself) but this will probably save you money. They will be able to recommend the cheapest and best deals for your available budget, and help prevent you making an application that could be rejected. This would adversely affect your credit score.

2. Manage your current account

You will need to give your lender copies of your bank statements for the last three to six months. You may need to tidy up your account in advance. Make sure here are no unpaid items, no regular deposits into online gambling accounts and that your rent is paid by direct debit instead of cash.

3. Employment

It goes without saying that if you’re not employed, you’re not getting a mortgage. However some will also refuse a mortgage if you have not been in a permanent job for at least twelve months. If you are still on a probationary period you could have trouble also. If you are in one of these situations your mortgage advisor may be able to advise you. If you are self-employed make sure you have the last three years’ accounts fully up to date.

4. What is your repayment capacity?

This is proof you can meet your future mortgage repayments. The best way to prove this is by showing you have saved, or paid rent, equal to the mortgage repayments plus 2 percent.

5. Income

Traditionally lenders have multiplied salary by four to get the maximum mortgage that they will lend to borrowers. Now many households have two incomes so there is sometimes an option to either; 4x the main salary plus the second salary, or; add the two salaries together and use a slightly lower multiple (e.g. three rather than four). The income multiplier is used as an absolute maximum but the lender will perform an affordability test to decide just how much they are willing to lend.

6. Deposit

You don’t need to have your deposit ready when you make your mortgage application. You can let them know you’re receiving a gift or however you’re going to obtain it and that will be fine.

If you are considering purchasing a new home and would like to discuss the legal process please give us a call on 02891 817715 or contact our property team by email property@boydricesolicitors.com

Building Control

Snag Lists for New Builds – What to look out for?

Boyd Rice

Don’t get caught up in the excitement of buying a new home with brand shiny new kitchen, bathroom and all the rest – you need to make sure you compile a snag list of any defects with your property. A snag list is a list of any defects where faults are noted so that they can be rectified by the builder/developer.

Take a note of items which appear to have not been totally completed or which do not meet satisfactory standards. Include items that may be defective, may not meet building regulations or are not finished to a standard and condition that a prospective purchaser should expect when buying a new property.

Snagging can be broken down into two areas. The first is to do with functionality, does everything in your new home work? This can be assessed easily – do the doors close, do the lights turn on, does the toilet flush, etc. The second is aesthetic – is the quality of finish to an acceptable standard? This is subjective and will most likely be where disagreements with the builder arise. Check counter tops for cracks, plaster work and the paint job.

It’s very important that you make this list at the outset. If you put it on the back burner for a while and get round to it a little later it will be more difficult to get these issues addressed. Best practice would be to sort this all out before contracts are signed and you’ve paid over your money. However frequently this will not be possible and some new builds will not be finished until after contracts are exchanged. Check if snags are covered in your contract and discuss it with your builder/developer at an early stage.

Once the builder/developer has been given the snag list they should complete all the listed items.

If you are purchasing a new home and would advice in relation to any issues regarding the snagging list please give us a call on 02891 817715 or contact our property team by email property@boydricesolicitors.com.