First time home buyer
Recent studies on home buying in Britain show, buying is still very difficult. Despite the changes in law made by the government to support home buying, raising a deposit or getting a mortgage is the biggest issue. Aldermore reports states nearly 50 percent of the first time home buyers were refused a mortgage when they first applied through their core bank.
Recovery in UK property market
Related statistics show surveyors are reporting more sellers listing their properties in the month of May 2018. This indicates buyers are struggling to get the property of their choice. Also, the latest survey - ‘British Social Attitudes survey’ by the Ministry of Housing claims UK residents support new affordable house building in their areas.
UK property market is tentatively showing signs of recovery. This was suggested by the data represented by RICS. The institution informed how the sentiment in housing was more or less flat. The figure shows a marginal decline in house prices in April and not much change otherwise.
After almost three years of price growth in the South-East, the growth has stopped and the price is balancing negatively. At the same time, the prices are rising in the North-West, the Midlands, and Wales. There has been an increase in the new buyer inquiries in the previous month.
Issues in buying the first home
Home buying can be a long and complex process, typically, involving a lot of research, borrowing, mortgage, and paperwork. Such transactions involve the cost of the transaction, legal documents, mortgage, the solicitor bill, the Land Registry, the stamp duty, and the removal bill.
The reports by Aldermore suggest home buying is 89 percent more difficult for the first-time buyer, although, the rate is slightly low as compared to August 2017, when it was 93 percent. Also, the mortgage affordability dropped from 12 percent to 5 percent for the first time buyers.
The mortgage valuation is done to assess the worth of the property, basically, to know what are the major works needed and how it affects the property price.
The buyer has to pay for a mortgage valuation, although, some sellers provide a free valuation.
Mortgage valuations by some evaluators can be expensive and even different from others for the same property.
Lenders can charge differently for mortgage valuation.
Buyers are advised to get a survey of the property where qualified RICS surveyors can give professional indemnity insurance. RICS condition report provides a basic survey about the home, while, detailed surveys are provided in the RICS homebuyer report.
Surveys can foretell risks in buying. Different types of survey reports are available such as the Condition report, where the survey provides the basic information related to the mortgage valuation and risk summary.
Other types of surveys are Home conditions survey and Building Surveys.
To get a detailed survey, home building surveys or structural survey can be taken. A building survey is recommended for old houses or buildings not having the proper paperwork.
Surveys help in negotiating property price, which depends on the repair work needed after buying.
The first-time buyer can get more information about home buying in the UK at Hamilton International Estates (www.hamiltoninternationalestates.com).