Thank you for this informative video. Will you recommend have ALL the money you will need ready before applying for the mortgage when buying a new build from St Modwen?
Yes, it’s highly recommended to have all the money needed for the deposit, hidden costs, and any other associated expenses ready before applying for a mortgage and purchasing a new build from St Modwen (or any other developer). However, if you have a heavy flow of liquid cash, you can have only your deposit saved and wing the hidden costs, or you can get it from negotiating. Here's why: 1. Mortgage Application Requirements Deposit: Most mortgage lenders require a certain percentage of the property's value as a deposit. Having this amount ready before applying for the mortgage is crucial, as it will be a key factor in determining your eligibility and the terms of the mortgage. Proof of Funds: Lenders typically require proof that you have the necessary funds available for the deposit and other costs. If you don’t have these funds ready, your mortgage application might be delayed or even denied. 2. Hidden and Additional Costs Stamp Duty: Depending on the property value and your location, you may need to pay stamp duty or a similar property tax. This can be a significant amount that needs to be accounted for. You will not need to pay for stamp duty if you are a first-time buyer and the property's value is under £425,000. Legal Fees: You'll need to pay for conveyancing, which involves a solicitor or conveyancer handling the legal aspects of the purchase. Depending on how strong your negotiation skills are, you could negotiate for your solicitor's fee to be paid by the developer. The only covet is that you might have to use a solicitor recommended by the developer. Mortgage Fees: Some mortgages have arrangement fees, valuation fees, or other associated costs. To avoid this cost, you can choose a mortgage without a fee. Surveys and Inspections: Even for a new build, you may want to conduct independent inspections or surveys to ensure everything is in order. You can wing this cost if you have family and friends who are surveyors and are willing to help you do this for free or at a discounted price. Moving Costs: Consider moving costs, including removal services, storage, and any necessary renovations or furnishings. Again, you can wing this cost if you have family and friends willing to help you move. 3. Financial Cushion Even in a new build, unexpected costs can arise, such as issues discovered after moving in or additional features you may want to add. Having a financial cushion ensures you’re not caught off guard. Likewise, knowing you have all the funds necessary helps you budget effectively and reduces stress during the buying process. 4. Avoiding Delays Having all the necessary funds ready helps ensure a smoother, quicker process from application to completion. Delays in securing funds can lead to missed deadlines, which might jeopardize your purchase, especially if you’re working within the timelines of a new build. 5. Stronger Buyer Position (Negotiation Power) If you can demonstrate that you have the funds ready, especially your deposit, you may be in a stronger position to negotiate with the developer or secure the property without issues. In conclusion, it’s best to be fully prepared financially before starting the process of buying a house. This preparation ensures you can handle all costs associated with the purchase and reduces the risk of financial stress or complications during the buying process.
@@pathwayukThank you so much for taking the time to give such a detailed answer. I have been searching for this answer for a few months now. Your videos have been very helpful. Wishing you all the best with the growth of your channel as you deserve
Hello, I learnt new build attracts higher council band, what’s your current band please and how much does both of you pay for council tax. Hope to read from you soon. Thanks
Yes, it's generally true that new builds in the UK tend to attract higher council tax bands. The reason is that council tax bands are determined based on the property's estimated value as of April 1, 1991, in England and Scotland (April 1, 2003, in Wales). Since new builds are modern, they are often valued higher than older properties of a similar size and type, leading to a higher council tax band. Our council tax band is D, and we pay £222 monthly.
❤ love this so many helpful informations
Glad it was helpful!
VERY INFORMATIVE VIDEO.... JUST SUBSCRIBED TO YOUR CHANNEL.... KEEP IT UP 👍
Thank you.
Thank you for this informative video. Will you recommend have ALL the money you will need ready before applying for the mortgage when buying a new build from St Modwen?
Yes, it’s highly recommended to have all the money needed for the deposit, hidden costs, and any other associated expenses ready before applying for a mortgage and purchasing a new build from St Modwen (or any other developer). However, if you have a heavy flow of liquid cash, you can have only your deposit saved and wing the hidden costs, or you can get it from negotiating. Here's why:
1. Mortgage Application Requirements
Deposit: Most mortgage lenders require a certain percentage of the property's value as a deposit. Having this amount ready before applying for the mortgage is crucial, as it will be a key factor in determining your eligibility and the terms of the mortgage.
Proof of Funds: Lenders typically require proof that you have the necessary funds available for the deposit and other costs. If you don’t have these funds ready, your mortgage application might be delayed or even denied.
2. Hidden and Additional Costs
Stamp Duty: Depending on the property value and your location, you may need to pay stamp duty or a similar property tax. This can be a significant amount that needs to be accounted for. You will not need to pay for stamp duty if you are a first-time buyer and the property's value is under £425,000.
Legal Fees: You'll need to pay for conveyancing, which involves a solicitor or conveyancer handling the legal aspects of the purchase. Depending on how strong your negotiation skills are, you could negotiate for your solicitor's fee to be paid by the developer. The only covet is that you might have to use a solicitor recommended by the developer.
Mortgage Fees: Some mortgages have arrangement fees, valuation fees, or other associated costs. To avoid this cost, you can choose a mortgage without a fee.
Surveys and Inspections: Even for a new build, you may want to conduct independent inspections or surveys to ensure everything is in order. You can wing this cost if you have family and friends who are surveyors and are willing to help you do this for free or at a discounted price.
Moving Costs: Consider moving costs, including removal services, storage, and any necessary renovations or furnishings. Again, you can wing this cost if you have family and friends willing to help you move.
3. Financial Cushion
Even in a new build, unexpected costs can arise, such as issues discovered after moving in or additional features you may want to add. Having a financial cushion ensures you’re not caught off guard. Likewise, knowing you have all the funds necessary helps you budget effectively and reduces stress during the buying process.
4. Avoiding Delays
Having all the necessary funds ready helps ensure a smoother, quicker process from application to completion. Delays in securing funds can lead to missed deadlines, which might jeopardize your purchase, especially if you’re working within the timelines of a new build.
5. Stronger Buyer Position (Negotiation Power)
If you can demonstrate that you have the funds ready, especially your deposit, you may be in a stronger position to negotiate with the developer or secure the property without issues.
In conclusion, it’s best to be fully prepared financially before starting the process of buying a house. This preparation ensures you can handle all costs associated with the purchase and reduces the risk of financial stress or complications during the buying process.
@@pathwayukThank you so much for taking the time to give such a detailed answer. I have been searching for this answer for a few months now.
Your videos have been very helpful. Wishing you all the best with the growth of your channel as you deserve
@NafisasPearlz My pleasure. I wish you all the best with your house purchase. ❤️
Hello, I learnt new build attracts higher council band, what’s your current band please and how much does both of you pay for council tax.
Hope to read from you soon.
Thanks
Yes, it's generally true that new builds in the UK tend to attract higher council tax bands. The reason is that council tax bands are determined based on the property's estimated value as of April 1, 1991, in England and Scotland (April 1, 2003, in Wales). Since new builds are modern, they are often valued higher than older properties of a similar size and type, leading to a higher council tax band.
Our council tax band is D, and we pay £222 monthly.
Thanks so much for the explanation and information. God bless you always.
Looking forward to more videos from you.
@@Beraka09 No worries.
What percentage did u pay as ur initial deposit
We paid 10% of the purchase price of our property.
@pathwayuk thanks for this..and how much was the interest rate given by the bank
@@olabodeoluwafunmilayo 4.9%
@@pathwayuk nice, thanks for your prompt replies
@@olabodeoluwafunmilayo You are welcome.