a helping hand with owning your home

7/25/2019 A Helping Hand With Owning Your Home

1/24

OUR GUIDE TO BUYING, REMORTGAGING AND PROTECTING YOUR HOME

WE UNDERSTAND HOW IMPORTANT IT IS TO HAVE THE

RIGHT INFORMATION TO HELP YOU EVERY STEP OF

THE WAY WHEN YOU MOVE HOME OR REMORTGAGE.

A HELPING

HAND WITH

OWNINGYOUR HOME.

Mortgages & Insurance


2/24

INTRODUCTION 3WHAT IS A MORTGAGE 4

PROTECTING YOUR HOME AND FAMILY 5

COSTS OF BUYING YOUR HOME 6

HOW MUCH CAN I BORROW? 8

HOW LONG WILL MY MORTGAGE LAST? (TERM OF MORTGAGE) 9

WAYS TO REPAY YOUR MORTGAGE 10

HOW IS INTEREST CHARGED AND PAID? 12

WHICH LENDER IS RIGHT FOR YOU? 14

COMMON FEATURES OF A MORTGAGE AND FACTS WHEN 15

BUYING YOUR HOME

OTHER WAYS ONTO THE PROPERTY LADDER 18

PROTECT YOUR FUTURE 18

STEP-BY-STEP-PLANNER 20

USEFUL WEBSITES 23

OUR GUIDE TO BUYING, REMORTGAGING AND PROTECTING YOUR HOME2

CONTENTS.


3/24

OUR GUIDE TO BUYING, REMORTGAGING AND PROTECTING YOUR HOME 3

INTRODUCTION.

Buying a home is one of the biggest financial decisions youllmake in your life and it can sometimes seem a daunting

prospect. Thats why we have produced this guide to help you

understand what you need to think about and the steps you

need to take when buying your home and remortgaging. Youll

find a range of information from what a mortgage is to the

costs involved. Theres also a useful step-by-step planner and

important information on how to protect your home and

family.

Your mortgage adviser is ready to help too. Theyre available

to provide practical advice at every stage and save you time

shopping around for a mortgage that best suits your needs

and circumstances.

Your adviser will give advice on a comprehensive range of firstcharge mortgages, but cannot give advice on secured loans,

bridging finance or commercial lending. If you require advicein any of these areas, please ask and they will be able to put youin touch with a specialist firm.


4/24

If you change your mortgage to a new lender remortgaging you maybenet from a better mortgage rate. Some lenders also offer to pay thelegal costs and valuation fees associated with remortgaging. The processfor remortgaging your home can take around 4 to 12 weeks, as the newlender will want to make similar checks to when you bought your homeoriginally. Your current lender may charge you exit fees when you leaveyour current mortgage, which may include an early repayment charge.

When you buy your home, you will most likely take out a loan a mortgage to pay for it. The mortgage is secured against your home. If you dontkeep up your mortgage payments your mortgage provider, or lender, maybe able to sell your home to recover the money you owe.

Whenever the property is sold, as the lender has a rst charge or inScotland a standard security the mortgage must be paid back rst.With your home as security, the lender is usually able to offer you a lower

interest rate than you nd with other types of loan.

REMORTGAGING

WHAT IS AMORTGAGE?



5/24


PROTECTINGYOUR HOMEAND FAMILY.

Buying a home is a bigcommitment, so its importantto arrange with your adviser forthe right insurance cover for youand your family. That way youcan help ensure your mortgage

will continue to be paid, shouldthe worst happen.

FIRST TIME BUYERS REMORTGAGING

If youre remortgaging ormoving home, its a good time toreview your existing insurancearrangements to make sure youhave sufcient cover.Please go to page 18 for full

details on how you can protectyour home and family.


6/24

APPLICATION/ARRANGEMENT FEESMost mortgage lenders will charge you an application or arrangement fee.

SOLICITORS FEESAs well as paying a solicitor or licensed conveyancer for the work he or she does, youll have to

pay the cost of land registry charges and local search fees. If your lender has their own solicitor

acting for them, you may have to pay their fees as well.

STAMP DUTYThis is a tax paid by you when you buy a property worth 125,001 or more. The amount you pay

will depend on the value of the property youre buying. Please note this information is correct at

the time of printing.

VALUATION AND SURVEY FEESYou may need to pay for a valuation or survey. The amount you pay will depend on the type of

valuation or survey you choose. See page 17 for more information on types of survey.

MORTGAGE ADVICE FEESSome advisers may charge a fee for the advice they give you. Your adviser will explain any fees

We recommend you complete the table overleaf with your adviser to help you work out what

you may have to pay when you buy your home.

This table should only be used as a rough guide and in some cases the expenses may be morethan the amounts agreed between you and your adviser. For example, if youre also selling

a home, there will be other costs such as estate agents fees. Also if you have an existing

mortgage, your current lender may charge you exit fees when you leave your current mortgage,

which may include an early repayment charge. Please note: This chart is for an indication of your

upfront costs. In addition to these, you will need to take into account the regular cost of the

mortgage and insurance payments.


COSTS OF BUYINGYOUR HOME.

RESIDENTIAL PROPERTY EXISTING RESIDENTIAL RATES

PURCHASE PRICE

Up to 125,000 0%

Over 125,001 250,000

Over 250,001 925,000

Over 925,001 1.5m

they may charge and confirm this in writing. In some instances an adviser fee may be charged

even if your mortgage doesn go ahead.'t

2%

5%

10%

Above 1.5m 12%

SDLT rates for SECOND PROPERTIES

5%

8%

13%

15%

3%

Table is for guidance only. Please speak to your solicitor / conveyancer if you need advice on the rate applicable to you


7/24


EXTRA COSTS

Stamp duty

Solicitor/conveyancer fees

Land registry

Mortgage adviser fees(if applicable)

Lenders application/arrangement fees(if applicable)

Lenders valuation

Survey fee

Buildings and contents insurance

Removal rm

Other

TOTAL

ESTIMATE FOR YOUR PROPERTY

Risk: If you add any fees to your loan, interest will

be charged on these amounts during the term of themortgage. Some fees will not be refunded even if yourmortgage doesnt go ahead.


8/24

HOW MUCH YOU CAN BORROW DEPENDS ON:

Your income, outgoings and any expected changes to these.

Your credit history.

Whether youre able or prepared to make changes to your lifestyle thatmay reduce your other outgoings.

How much deposit you can afford.

You will need to nd out how much you can borrow before making an offeron a property. Some lenders will work out how much theyll lend you beforeyou nd a property this is called an approval in principle. This will help youknow the maximum offer you can make on a property and will also speed up themortgage process.

Lenders usually base their calculations on your guaranteed earnings such

as basic pay, but most will also consider some or all of any regular overtimeor bonuses. Theyll usually want to see proof of your income.

CONSOLIDATING DEBTS

If you have existing debts, it may be possible for you to add these to yourmortgage rather than continue with your existing repayment arrangements.This is not suitable for everyone and youll need to carefully consider this withyour adviser. When you add loans to your mortgage, it is important that youunderstand the risks:

Adding short-term loans to your mortgage means you will repay them overa longer term. This is because unsecured loans are generally paid back

over a shorter term than mortgage loans. So, while the interest rate on yourmortgage may be lower than you currently pay on your loans, by adding themto your mortgage youre likely to pay more overall. Therefore it may not beappropriate to consolidate small or short-term debts.

Your existing debts might not be secured on your property. By addingthem to your mortgage they become secured on your property.

Think carefully before securing other debts against your home. Your home maybe repossessed if you do not keep up repayments on your mortgage.

If youre having difculty paying your loans, its worth speaking to your creditorsto see if you can negotiate better terms before considering adding them to yourmortgage.

FURTHER ADVANCES

If you need to borrow more money in the future it may be possible to do this byway of a further advance. Your adviser will have more information on thisif youre interested.


HOW MUCHCAN I BORROW?


9/24

Mortgages usually have a term of between 5 and 40 years. A mortgage should normallybe for the shortest term you can afford as this keeps the overall cost down. A longerthan necessary term means youll pay more interest to your lender.

Its always advisable for your mortgage term to end before you retire, as your mortgagemay not be affordable using your retirement income.


HOW LONG WILLMY MORTGAGE LAST?(TERM OF YOUR MORTGAGE)


10/24

With a repayment mortgage, your monthlypayments to the lender go towards reducing theamount you owe as well as repaying the interestthey charge. This means that each month yourepaying off a small part of your mortgage.

The advantages:Its a clear approach you cansee your mortgage getting smaller and providedyou maintain the required payments, you alsohave the certainty that your mortgage will berepaid at the end of the term.

The disadvantages:Initially, the majority of yourpayments go towards interest on your mortgage,which means in the early years, the amount youowe wont reduce by very much.

REPAYMENT MORTGAGES


WAYS TO REPAYYOUR MORTGAGE.THERE ARE TWO STYLES OF MORTGAGE REPAYMENT REPAYMENT AND INTEREST ONLY.

REPAYMENT MORTGAGE

5 10 15 20 25

LOAN

MORTGAGE TERM

Outstanding LoanCapital Paid Off


11/24

INTEREST ONLY MORTGAGES

With an interest only mortgage you only paythe interest charged on your loan, so yourenot actually reducing the loan itself. Youllneed to have some other arrangement or planin place to repay your loan at the end of theterm. For example investments, savings plan,downsizing (where you sell your property andbuy a cheaper one using the equity to repay yourloan), making lump sum payments or changingto a repayment mortgage.

The advantages: If the savings or investmentplan you choose performs well, then you couldpay off your mortgage earlier compared toa repayment mortgage. At the full mortgageterm there may be a lump sum available afterthe mortgage has been repaid.

The disadvantages: Very few investments orsavings plans are guaranteed to repay yourmortgage in full. At the end of the mortgageterm, youre responsible for repaying themortgage in full. If your savings or investmentplan doesnt cover the full amount, youll beresponsible for paying the difference. Yourmortgage lender can demand repayment, andtheyll charge you interest on any outstanding

balance until its repaid.

Lump sum payments or changing to arepayment mortgage may not be possibleif your circumstances change and you canno longer afford the increased amounts.

Downsizing is not a guaranteed method ofrepaying your loan as, even if you have enoughequity now, house prices could fall and mayleave insufcient equity to repay the loan. It isnot advisable to rely on house prices increasingas this might not happen.

Some people may hope to rely on inheritance.However, there are several risks associatedwith this: people can change their Wills and,therefore, your inheritance is not guaranteed;the amount you receive may be different to whatyou expect; you may not have inherited by thetime your mortgage term ends or you retireand there can be a delay in receiving fundsfrom an estate.

Many lenders will only accept certain plans torepay an interest only mortgage. Your adviserwill be able to guide you.

Please note: the diagram below is for illustrationpurposes only and assumes a xed rate ofinterest over the term of the mortgage.In reality, interest rates uctuate.

It may be suitable for you to pay your mortgageby a combination of repayment and interest only.

COMBINATION MORTGAGE


INTEREST ONLY MORTGAGE

5 10 15 20 25

LOAN

MORTGAGE TERM

Outstanding LoanInterest Paid


12/24

STANDARD

VARIABLE RATE

This is a standard interest rate,which a lender will set andcan go up or down in line withmarket rates (such as the Bank ofEnglands base rate).

ADVANTAGES:

You have more exibilityand can usually repay yourmortgage without any earlyrepayment charges.

DISADVANTAGES:

Your monthly payments can goup and down and this can makebudgeting difcult.

Standard variable ratemortgages are not usuallythe lowest interest rateslenders offer.

DISCOUNTED RATE

Some lenders offer mortgageswhere the initial interest rateis set at an amount below theirstandard variable rate for a setperiod of time. At the end of yourdiscounted rate period, yourlender will usually change yourinterest rate to their standardvariable rate (SVR). Its a good ideato review your mortgage at thisstage because the lenders SVRmay not be the best deal around.

ADVANTAGES:

Your payments should cost youless in the early years, whenmoney may be tight. But youmust be condent you canafford the payments when thediscount ends.

DISADVANTAGES:

Your monthly payments cango up or down which can makebudgeting difcult.

If you want to repay the loanearly, there could be earlyrepayment charges.

FIXED RATE

With a xed rate mortgage, yourmonthly payment wont changefor a set period. At the end of yourxed rate, your lender will usuallychange your interest rate to theirstandard variable rate (SVR).Its a good idea to review yourmortgage at this stage because thelenders SVR may not be the bestdeal around.

ADVANTAGES:

You know the exact amountyoull need to pay each month,which makes budgeting easier.

Your monthly payment willstay the same during the xedperiod, even if other interestrates increase.

DISADVANTAGES:

Your monthly payment willstay the same during the xedperiod, even if other interest

rates decrease.

If you want to repay your loanearly, there could be earlyrepayment charges.


HOW IS INTERESTCHARGED AND PAID?

0 1 2 3

%R

ATE

YEARS

Discounted rate (three years)

Lenders standard variable rate

0 1 2 3

%R

ATE

YEARS

Fixed rate (two years)



13/24

There are lots of different interest rate options offered bylenders to suit many different purposes. Below is our guide tothe most popular ones. The initial lump sum that you put intobuying your home (not including the money youre borrowing)is known as the deposit. The bigger your deposit, the morelikely you are to get a better interest rate.

TRACKER MORTGAGE

With a tracker mortgage, theinterest rate charged by your

lender is linked to a rate such asthe Bank of England base rate.This means your payments cango up or down.

ADVANTAGES:

The rate you pay tracks anotherheadline rate (for example, theBank of England base rate orthe lenders base rate). If theheadline rate changes, yourtracker rate changes by thesame amount. So normally your

interest rate will be followingtrends in the marketplace.

DISADVANTAGES:

Some lenders impose a collarwhich means the interest ratewont fall below a certain level,even if the rate its trackingcontinues to reduce.

Your monthly payments cango up or down which can makebudgeting difcult.


OFFSET MORTGAGE

With an offset mortgage, yourmain current and/or savings

accounts are linked to yourmortgage and are usually heldwith the mortgage lender. Eachmonth, the amount you owe onyour mortgage is reduced by theamount in these accounts beforeworking out the interest dueon the loan. This means that asyour current account and savingbalances go up, you will pay lessmortgage interest. As they godown, you will pay more. Linkedaccounts that are used to reducethe mortgage interest payments

do not attract any interest.

ADVANTAGES:

These products allow exibilityand can encourage you to save.

Mortgage payments can bereduced as the level of savingsincrease, or you may be able tocontinue paying the same andpay your mortgage off early.

You usually pay tax on yoursavings. However, if yoursavings are automatically usedto offset your mortgage, youwont pay income tax on thesesavings this is particularlybenecial if youre a higherrate taxpayer.

DISADVANTAGES:

These types of mortgages arenormally only suitable if youhave savings over a certain

level.

CAPPED RATE OR CAPPED

AND COLLARED RATE

With this type of mortgage, theinterest rate is linked to your

lenders standard variable rate butwith a guarantee that it wont goabove a set level (called the cap)for a set period, but equally wontgo below a set level (called thecollar) for an agreed period oftime. Its possible to have a cappedrate without a collar.

ADVANTAGES:

You know the maximumand minimum youll pay fora set period of time making

budgeting easier.

These products are useful if youwant the security of knowingthat your payments cant riseabove the set level (the cap),but could still benet if rates fallduring the set period.

DISADVANTAGES:

Even if other rates fall, yourinterest rate for the set periodwill not go down below the levelof the collar.



0 1 2 3

%RATE

YEARS


Capped rate

Collared rate


14/24

Your adviser is on hand to talk you through many different lenders andthe range of products they offer. However, in some circumstances yourchoice of lenders may be restricted.

OVERLOOKED BY THE HIGH STREET

Some lenders might not lend to you if your personal circumstances are out of the ordinary,or you have a poor credit history. But there are lenders that can help you in these situations.They take individual circumstances into account when assessing an application ask youradviser for more information.

Be realistic about what you can afford

You must never overestimate your earnings to help you buy a property.If you dont have enough income to meet the repayments, you could risklosing your home and having a bad credit record. It is a criminal offenceto deliberately give false information to your mortgage adviser or lenderto obtain a mortgage.


WHICH LENDERIS RIGHT FOR YOU?


15/24

Here are some useful terms and facts. The specic features

of your mortgage are shown in your Key Facts Illustration(which your adviser will give to you). This is an importantdocument which you must read as it highlights anyconditions that apply to your mortgage.

ARREARS AND REPOSSESSIONIf at any time you are unable to meet yourmortage payments, you should speak toyour lender straight away. Repossessinga property is generally a last resort yourlender will try to reach an arrangementwith you to enable you to keep yourhome. If your lender sells your propertyafter repossessing it youll be responsiblefor any shortfall including fees associatedwith the sale.

ANNUAL PERCENTAGE RATE (APR)As well as telling you the rate at whichthey will charge you interest, lendersmust also calculate the APR of yourmortgage. This is the total cost of theloan, including interest and fees shown

as a percentage rate. The APR is intendedto help you compare different types ofmortgages from different lenders. Incalculating the APR, lenders assumeyoull pay the mortgage for the fullterm. All lenders will tell you what theirAPR is before you sign up with them.Generally, the lower the APR, the betterthe deal, assuming you stay on the samemortgage product throughout the term ofyour mortgage.

CASH BACKWith a cash back mortgage, your lenderpays you a lump sum when you completeyour mortgage. The cash back can be axed amount or can be worked out as apercentage of your mortgage. You shouldbe aware that if you move to anotherlender in the early years, in other wordswithin the early repayment charge period(see overleaf) then youll have to repaysome or all of the cash back received.

CREDIT SCORINGWhen you apply for a mortgage (or anysort of credit) the lender will usuallycredit score your application. This helpsthem decide whether to accept yourapplication, the amount of money theyre

prepared to lend to you and what rate ofinterest youll pay.

Credit scoring works by awarding pointsbased on your circumstances. Eachlender has their own scoring system.Youll generally score more points ifyouve been in your job longer, own yourown home and have paid all of your loanson time in the past. Having a good credithistory will improve your chances ofgetting the best rate mortgage.

You can get your individual credit report

by contacting Experian (www.experian.co.uk) or Equifax (www.equifax.co.uk).This will help you understand your creditle and what aspects lenders use to makea credit decision.


COMMON FEATURESOF A MORTGAGEFACTS WHEN BUYING A HOME


16/24

ENERGY PERFORMANCECERTIFICATESEnergy Performance Certicates

(EPCs) are required by law for allhomes bought, sold or rented. Theygive information on how to makeyour home more energy efcient andreduce carbon dioxide emissions.If youre a landlord or homeowner andneed to provide an EPC, youll needto contact an accredited domesticenergy assessor. They will carry outthe assessment and produce thecerticate. You can use the energyperformance certicate registerwebsite to search for an accrediteddomestic energy assessor, searchonline or look in the phone book.

EPCs contain: information on your homes energy

use and carbon dioxide emissions a recommendation report with

suggestions to reduce energy useand carbon dioxide emissions

EPCs carry ratings that compare thecurrent energy efciency and carbondioxide emissions with potentialgures that your home could achieve

if energy saving measures were put inplace.Its using a grade from A to G whereA rating is the most efcient.The price of an EPC is set by themarket and will depend on the sizeand location of your property.EPCs are valid for ten years.

For more information pleasego to http://www.direct.gov.uk/en/HomeAndCommunity/BuyingAndSellingYourHome/Energyperformancecerticates/

index.htm


EARLY REPAYMENT CHARGEThis is a charge that you may haveto pay if you want to pay off your

mortgage before the end of a setperiod. Some charges may apply onlyfor as long as the set period lasts. Inother cases, they can extend beyondthis.

FREE LEGALSSome lenders offer arrangementsthat include the cost of completingthe legal work involved in arranging amortgage and buying a home. Thesearrangements vary but they all reducethe amount youll need to pay at theoutset.

HIGHER LENDING CHARGELenders sometimes charge a fee ifyour mortgage is a high percentageof the propertys value. This fee isused by your lender to buy insurancethat protects them if they repossessyour property and sell your home forless than the amount outstanding onyour mortgage. This insurance doesnot protect you. You would still beresponsible for any shortfall after thesale of your property.

HOME REPORTS FORPROPERTIES FOR SALEIN SCOTLAND

Houses for sale in Scotland now haveto be marketed with a Home Report.This is a pack of three documents:a Single Survey, an Energy Reportand a Property Questionnaire. TheHome Report will be made availableon request to prospective buyers ofa home. The Single Survey containsan assessment by a surveyor of thecondition of the home, a valuation andan accessibility audit for people withparticular needs. The Energy Reportcontains an assessment by a surveyorof the energy efciency of the homeand its environmental impact. It alsorecommends ways to improve energyefciency. The Property Questionnaireis completed by the seller of the home.It contains additional informationabout the home, such as Council Taxbanding that will be useful to buyers.For more information please goto http://www.scotland.gov.uk/Topics/Built-Environment/Housing/BuyingSelling/Home-Report

LOAN DRAWDOWN

When your mortgage is conrmed,your lender may agree to lend youa pre-agreed amount of extra moneywithout having to go through a formalapplication process. This is known asa drawdown facility. You may also beable to borrow back the amount of anyoverpayments that youve previouslymade.

NEGATIVE EQUITYIf the value of your property fallsbelow the amount you owe on yourmortgage this is called negative

equity. If this happens, and youneed to sell your property, youll stillbe responsible for repaying the fullamount of the mortgage.


17/24

Building survey previously knownas a full structural survey This isthe most detailed type of survey

thats completed by a surveyorworking for you. The surveyor isresponsible to you if they fail tospot things. Building surveys arenormally asked for by those whoare looking to buy:

an older property;

one which needs substantialrefurbishment; or

where there have been structuralproblems in the past.

This has to be arranged by the buyer.

Additional surveys or reports maybe needed by your lender beforetheyll make you a mortgage offer.


PORTABILITYSome lenders let you move yourmortgage to a new property when

you move house.

OVERPAYMENTSMost mortgages now offer you theoption of increasing your monthlypayments. When you do this, youllbe paying an additional amount offyour mortgage each month. Makingoverpayments can help you to repayyour mortgage before the end ofthe term.

UNDERPAYMENTS AND PAYMENTHOLIDAYSSome mortgages allow you to reducethe amount you pay each month,or to stop making monthly payments,if youve previously overpaid. Lendersonly normally allow you to makeunderpayments or take paymentholidays for a limited period. This canbe useful if your income falls for aperiod of time. In both cases youll bepaying less than the normal monthlypayment so the amount of yourmortgage will increase.

UNSECURED BORROWINGSome lenders will give you amortgage that allows you to borrowadditional amounts on an unsecuredbasis. This means its not securedagainst your property. An unsecuredloan generally costs more as thelender has no security that theycan use to repay some or all of theloan if youre not able to pay it back.The Consumer Credit Act coversunsecured borrowings.

TAX AND WILLSIn some circumstances you may needto think about the tax implications of

buying your property. Your advisercant give you any advice about thetax implications and if youre unsureabout this in any way you should getadvice from a tax specialist.

When you buy a property, we stronglyrecommend that you ensure your Willis up to date. This means that yourassets, including your property, aregiven out in line with your wishes.

VALUATIONS AND SURVEYSThere are three types of valuationsand surveys valuation reports,homebuyers reports and buildingsurveys:

Basic valuation report This isa basic report paid for by you,but completed by the valuer foryour lender. Your lender will usethis report to help them decidewhether theyll lend you the amountof money you need to buy yourproperty.

Homebuyers report This is amore detailed report that a surveyorcompletes for you. Theres animportant difference betweena basic valuation report and ahomebuyers report. The valuationreport belongs to the lender andthe valuer completes the reportfor them. With a homebuyersreport, the surveyor works for youand theyre responsible to you ifthey fail to spot things. Whilst thiscosts more than a basic valuation,you should consider asking for a

homebuyers report as it will giveyou a lot more information aboutyour property. Its particularly usefulif youre buying an older property.Your lender will normally use thehomebuyers report to help themdecide whether to lend on yourproperty, so you wont normallyneed more than one report. Yourlender can arrange this.


18/24

OTHER WAYS ONTO THE PROPERTY LADDER.

If youre having difculty getting onto

the property ladder, here are some

options you might like to consider:

BUYING WITH FRIENDS OR FAMILY

Buying with friends or other members

of your family is one way of getting

on the property ladder sooner. It also

means that youll be living with people

you know and trust. That said, its

still a sensible idea to get legal advice

before choosing this option.

GOVERNMENT HOME OWNERSHIP

SCHEMES

There are a range of government backed

schemes set up to help buyers onto the

housing ladder. These include:

Once youve had your mortgage

approved, the next step is to think

about protecting your home and

family. The mortgage isnt usually the

only payment we need to make each

month. What about covering everyday

bills and expenses? Utility bills, foodshopping, travel costs, childcare the

list could go on.

It is not a pleasant thought, but

How would one partner cope

nancially with the death or critical

illness of the other?

Could you cope maintaining

your current lifestyle?

Could you continue to raise

your family?


GUARANTORS

If your lender doesnt think you can

afford a mortgage on your own, you

could consider asking your parents or

other close family to be guarantors.

A guarantor legally agrees to be

responsible for the mortgage

payments if youre unable to make

them. This is usually a short-term

option and, if your lender agrees, you

can get a guarantor removed at a later

date if your circumstances change.

Guarantors should get their own

independent legal advice.

Right to acquire This allows

eligible housing association tenants

to buy their property.

Social HomeBuy This offers

eligible housing association or

council tenants the chance to buy

a share of the market value of their

current home.

You can get more information on all of

these schemes from the government

website www.direct.gov.uk (please

see the Useful websites section).

PROTECT YOUR FUTURE.

Maintain your standard of living

Pay your monthly bills and meet

your daily living costs

Pay off your debts

Afford to stay in your family home

rather than have to downsize.

HOW MUCH WILL IT COST ME?

Premiums are based on:

Your age

Other factors such as health and

whether you smoke.

Usually, the younger you are, the less

youll pay.

We all want security for our future,

a chance to maintain the nancial

stability we have worked so hard for.

Thats why its so important to look

ahead and plan for all eventualities.

In the current economic climate, its

even more important to consider

protecting yourself and your family.

Protection products can help provide

nancial peace of mind when its

needed most. Theyre designed to

provide you with a cash sum or monthlybenet (depending on the plan chosen).

They are payable, for example if you die

or are diagnosed with a terminal or

specied critical illness during the policy

term and are eligible to claim.

Please note that none of our protection

products have any cash in value at any

time.

Depending on the products chosen,

they could help you to:

Right to buy This allows council

house tenants to buy their property

if theyre eligible.


19/24

WHO SHALL I COVER?Its also important to remember that itsnot just the main wage earner that you

may need to consider when workingout the right cover. What about thework a full time houseperson does how would you replace them if theywere to die or be diagnosed with acritical illness?In 2011 we conducted some researchinto the amount of time spent ondomestic tasks by women and men inthe home.The value of domestic work undertakenby women is 29,535a year and for menits 21,601a year.

WHAT YOU CAN DO TO GET COVEREDFrom time to time we all need to stopand think about our current nancesand future needs. With the number ofprotection products available thesedays this can be daunting for some.Wouldnt you feel better knowingyou were getting professional help tond your way to the right protectionproduct? By reviewing your nanceswith a nancial adviser they couldhelp you protect yourself and yourpartners/familys future. As with all

protection policies limitations willapply.

HOW CAN AN ADVISER HELP YOU?

Theyll help to fully identify yourprotection needs and makerecommendations that are specicto your circumstances.

Theyll answer any questions andconcerns you may have.

They can continue to review yourrequirements on a regular basis,taking into account any changes toyour commitments or lifestyle.For more help and advice talk to yournancial adviser today.It really is worthwhile thinking aboutprotecting your partner/familys future.


YOUR HOME INSURANCE INSAFE HANDSOnce youve secured your mortgage,

its important to look at homeinsurance. Your adviser can offeryou Home Insurance at a competitiveprice, giving you the peace of mind thatyour treasured possessions can becovered.

HOME INSURANCE PROTECTING YOURBUILDING AND CONTENTSFinding the right home insurance canbe complicated, but your adviser canhelp you choose a policy thats tailoredto meet your individual needs, with awide range of optional extras. Plus, ifyou insure both buildings and contentsunder one policy, you mayreceive a discount on your premium(subject to minimum premium).

BUILDINGS INSURANCE: WHATSCOVERED?Your home is probably your biggestsingle purchase, so its important youhave adequate buildings insurance inplace.

Buildings insurance covers your home

and its xtures and ttings againstloss or damage caused by events suchas re, storm, ood and subsidence.It also covers less common causes ofdamage such as theft, vandalism ordamage to your property caused byvehicle collision.

CONTENTS INSURANCE:WHATS COVERED?Contents insurance covers yourhousehold goods and personalbelongings against loss or damagecaused by risks such as re, theft,

storm and ood.


20/24


STEP-BY-STEPPLANNER.BUYING A HOME

Instruct a solicitor orlicensed conveyancer whowill undertake all the legalwork required throughoutthe process of you buyingyour home. (Your lendermay be able to provide

access to these facilities.)

The lender will issuean offer detailing anyconditions that apply.

Visit an adviser to discussyour mortgage andprotection needs. Youradviser can apply for anapproval in principle earlyin the process so youvean idea of the amount you

can borrow.

Register with estate agents,check property websitesand look in local papers tond a property you want.

Make an offer via yourestate agent.

When your offers accepted,complete a mortgageapplication with youradviser and submit tothe lender:

The lender will undertakecredit searches.

The lender will instruct avaluation. Its also a good

idea to have a surveydone so youll need todecide which typeyou want.


21/24


You canarrange tocollect thekeys to yournew home onyour completiondate.

Your solicitor will drawup contracts and arrangea date for them to beexchanged. At this pointyoure legally committed tothe contract. If any depositis due, it will need to be

paid at this point.

At the same time the dateof exchange is agreed thedate for completion willalso be decided.

Buildings insurance willneed to be in place (on risk)from exchange. It may beappropriate for some ofyour other protection needsto be in place at exchange if not, your adviser will

arrange for them to be onrisk for completion.

STEP-BY-STEPPLANNER.BUYING A HOME


22/24


REMORTGAGING BUYING A HOME

IN SCOTLANDVisit an adviser to discuss your remortgageand protection needs. Complete a mortgageapplication form with your adviser and submitto the lender:

The lender will instruct a valuation.

The lender will undertake credit searches.

Unless your lender offers free legal services,instruct a solicitor or licensed conveyancerwho will do all the legal work requiredthroughout the remortgaging process.

Your lender will issue an offer letter detailingany conditions that apply.

Your solicitor will give you a completiondate and ensure funds are transferred

appropriately so your existing mortgage isrepaid and any surplus funds passed to you.

Your new lender will correspond with you onyour new loan.

Visit an adviser to discuss your mortgageand protection needs. Your adviser can applyfor an approval in principle early in theprocess so youve an idea of the amount youcan borrow.

Register with estate agents, check propertywebsites and look in local papers to nd theproperty you want. Scottish properties areusually marketed on an offers over basis,where the property is put on the market belowits value to attract interest.

Hire a solicitor who is familiar with Scottishproperty laws who will undertake the legal workthroughout the process of buying your home.Once youve found the right property youllneed to arrange a valuation or survey.

Make a formal offer via your solicitor. Onceyour offer is accepted then youre committed

to proceed to conclusion of missives.

When the offer letter is sent, the solicitorsfrom both parties will be able to concludemissives. These are a series of letters thatpass between the solicitors addressing thener details of the purchase.

A date of entry will then be arranged for thekeys to be collected. It is at this point that the

full purchase price must be paid. You shouldensure your insurance and protection policiesare put on risk from this date.


23/24

USEFUL WEBSITES.

www.moneyadviceservice.org.uk

www.cml.org.uk

Website of the Council of Mortgage Lenders. It provides

a range of general consumer information including

downloadable guides on home buying and selling, and

mortgage payment protection insurance. They also provide

a list of frequently asked questions about mortgages, a

mortgage calculator and mortgage repayment tables for

consumers who want to calculate their mortgage costs.

www.naea.co.uk

The National Association of Estate Agents. Provides help and

advice on buying and selling property as well as a property

search facility.

www.direct.gov.uk

Public services website provided by the Government.

Gives information about tax credits, the government home

ownership schemes and state benets.


The Money Advice Service is an independent service set up by

the government to help people manage their money.


24/24

CONTACT US.

email: info@dsmortgages co uk

www dsmortgages co uk

Tel: 0330 22 333 10

SOL4409

a helping hand with owning your home

Documents