Buying a House and Moving before Christmas

If you’d like to wake up on Christmas morning in a new home, you need to act fast. December will be here before you know it, and you’ll want to be in your new property at least a couple of weeks before the 25th, so you can decorate the Christmas tree and put a wreath on your front door. Aside from the Christmas decorations, you’ll want time to turn your house into a home too.

Buying A House Fast

If you’ve decided your current home isn’t big enough, you fancy upgrading, moving to a new area or you’re buying your first home, you should dedicate some time to deciding what you want and don’t want from your new home. If you’re buying with someone else, compromise might be required. Having a clear search area, property type and budget, can stop you from wasting time looking at properties that aren’t suitable.

Make sure that you’re registered with local estate agents and that they know you want to move fast. If you’re also selling a property to enable your purchase, you’ll need to find a buyer who is equally as keen to get moving.

Get a mortgage offer quickly

Don’t wait until you’ve found the perfect property before booking an appointment with a mortgage broker. They’ll be able to offer your invaluable advice, answer any questions you have about the house buying and mortgage process, and provide you with a mortgage in principle.

A mortgage broker or adviser will look in detail at your finances and circumstances, asking a number of affordability questions, as it’s vital that you’ll be able to keep up with your mortgage payments, month in, month out, or you could end up losing your home.

They will then search the market for you to find the best mortgage deals, saving you valuable time. Many mortgage comparison sites don’t search all available lenders, and therefore won’t necessarily identify all mortgage products that are suitable for your needs. A broker has access to everyone and will spend the time stress testing each option and exploring alternatives. They’ll then go through the best deals with you, explaining how they each work, e.g. some may be fixed deals for 2 years, 3 years, or 5 deals, which are often ideal if you want to know exactly how much you’ll have to pay each month. If this isn’t something that matters to you, you may decide that a tracker mortgage is better.

Once you find a deal you like, your broker can put in an application, and you’ll receive a mortgage in principle letter. This means that you should be able to get a mortgage for a given amount; so can act as proof that you’re a serious buyer when you place an offer on a property.

From offer, to exchange, to completion

Placing an offer on a property is exciting, but until it’s accepted and the property is taken off the market you won’t be able to begin the conveyancing process. The conveyancing process is what happens when a property legally changes hands. Generally it takes around 6 weeks from instructing solicitors to exchange.

Your mortgage adviser will most likely be able to recommend several local solicitors, for a speedy purchase and / or it is best to get them lined up early so you can instruct as soon as your offer is accepted. They will also act on behalf of the mortgage lender (who is essentially buying the house for you, or at least part of it) and will need details of the mortgage offer to proceed.

The mortgage lender will send a surveyor to assess the property you want to buy, to confirm that the property is worth as much as you say it is. If it’s down valued, you might not be able to get the full amount you were hoping for. If this happens, your mortgage broker will explain the different options available to you, one of which will be to apply again this time with a different lender. Having an independent mortgage adviser to help you through this process, can take the pressure off and make it a lot less stressful than trying to do it yourself.

Once your mortgage has been approved, your broker will probably also recommend buildings insurance products – you need to have this in place from the date of exchange – but you do have the option to shop elsewhere for buildings cover if you choose. Your solicitor will arrange a date for exchange of contracts, and a completion date, which is the day you’ll get the keys to your new home. Once you know these dates, you’ll be able to begin packing up your belongings and book your removal company.

Need a mortgage broker?

Moving home can be stressful especially in the run up to Christmas, but if you have the right professionals in your corner, you should have as smooth a move as possible. If you need mortgage advice, or a general chat about your options for buying a property, please get in touch.

A MORTGAGE IS A LOAN SECURED AGAINST YOUR HOME OR PROPERTY. YOUR HOME OR PROPERTY  MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE OR ANY OTHER DEBT SECURED ON IT. 

Inflation, Interest Rates and House Prices

There has been some interesting data released this weekwhich all has an effect on the economy; but what does it mean for those of us with an eye on the housing market?

Inflation has fallen this month to 2.6%, this is the CPI (Consumer Prices Index) measure and it is down from 2.9% in May. Historically the fiscal measure to try and stem inflation would be to raise interest rates but as I’ve said before these are not normal times. Since the financial crash of 2008 interest rates have been super low and inflation has rollercoastered its way along. It seems like other factors are effecting inflation, the value of the pound for example can have an impact. If you need to import goods to produce your product and the pound is weaker than before then you are going to increase prices. I think this has been the main driver in pushing inflation since the Brexit vote of June 2016.

With this slight drop in inflation perhaps we are seeing a levelling off or a “settling down’ as Bank of England Governor, Mark Carney, said last month.

The fact inflation has fallen a little does ease pressure on the Bank of England to raise rates and perhaps just sit out the Brexit negotiations and see what they bring. The Brexit negotiating period may well be a challenging time for the British Economy.

As I have repeated many times in my blog, keep an eye on wage inflation. This is still low and until it outstrips inflation then I can’t see a significant interest rate rise.

So with interest rates set to remain low for now what does that mean for house prices?

Well, interest rates are not the only factor in house prices. As my old economics teacher once said, “all you need to know is supply and demand and you’ll pass your exam” (he wasn’t entirely right on that one!). However housing is all about supply and demand. In the UK we have a housing shortage, more people want a house than there are houses, to put it simply. Therefore this demand for housing will keep pressure on the prices and cause them to rise. In June, RICS reported growth had slowed to 4.7% year to date. Slowed, but prices still rising.

On top of this if you factor in the report earlier this month that said estate agents have the lowest stock of properties since 1978. As always prices do see regional variation. If we look here in Surrey I can see low availability and high demand for areas within commuting distance of London with good schools, and I just can’t see prices falling in those areas.

So if you are selling in theory you should get a good price for your property, if you are buying expect to pay at the top of your budget.

With interest rates low, now’s a good time to review your current mortgage arrangements and see whether you can get a better rate by remortgaging. If you’re looking to move house and require a mortgage, you will also need to explore what mortgage lender’s are prepared to lend you to enable your purchase. If you require any support finding the right mortgage product, or would just like to talk through your options, call me on 01252 759233 or email richard@thesurreymortgagebroker.co.uk

What does the Election 2017 Result mean for the Mortgage Market? If anything?

So unless you’ve been living under a rock for the last few days you will know that Theresa May sort of won the General Election and has formed a minority government. The Conservatives won the most seats but fell short of an overall majority, which they wanted to be able to put themselves in a strong negotiating position when it comes to the Brexit issue.

Now that the dust has started to settle from the initial shock of the result what can we expect in the coming months and years for mortgages and the housing market?

The Brexit Effect

Running a business that is largely dependent on the housing market I can say from my perspective that the decision to leave the EU has affected the housing market. This may not be the view of other brokers but I would say that housing stock has fallen and the number of transactions have fallen. It feels very much like the housing market was post credit crunch. It also feels like there are fewer buyers around as people perhaps decide to sit tight instead of making major life decisions, like moving house.

The difference between the credit crunch time and now, is that money is cheap. It is easier to get a really competitive rate and this makes moving house still a viable transaction, as the interest rates are so low.

As ever with the housing market there will be regional variations. House prices are still rising nationally but not as quickly as before the referendum, probably a good thing. It is the reasons behind this slowing that might be a concern. My opinion is that this is down to lack of demand. If you thought your house was worth £x in Jan 2016 you might get a few interested parties competing with each other and actually achieve £x plus a bit more. Now the likelihood of competing buyers is pretty low.

Strong and Stable?

In order to bring some clarity to the country’s future Theresa May wanted a strong mandate to be able to show our European friends that she was fully supported by the great British Public. Unfortunately for her it didn’t quite work out that way. Commentators are now saying this might lead to a softening of the “hard Brexit” stance taken by the Tory party. I think largely it has led to uncertainty, which is not ideal. Uncertainty is what has led to the slowing of the housing market since the referendum so therefore if this uncertainty continues then I can’t see anything changing. Some readers might however feel positive about the election result, if the softening of the Brexit does happen then those “Remainers” might be appeased and feel more positive about the future.

What About Interest Rates?

Inflation is up to 2.9% and over the prediction made by the Bank of England (they said 2.8% by the end of the year). Historically a rise in inflation would mean a rise in interest rates but in this post financial crisis world in which we live this has certainly not been the case.

What the election result will not lead to is a rise in interest rates. Interest rates are out of government control and this is a good thing. The Bank of England make the decision and I don’t think rates are going anywhere until 2019 – that my friends is a prediction, not a promise!

Why do I think this? Although unemployment is low and we have the highest level of employment for a long time the key factor is wages. Wage inflation has been lower than price inflation for most of the last ten years. You will need to see a prolonged period of wage inflation outpacing price inflation before you see a rise in interest rates.

With the right deposit/equity you can secure a five year fixed rate mortgage at below 2%, if the lenders are happy lending for that length of time at such a low rate then they don’t think rates are going up either.

What Should You Do If You Want To Move Or Remortgage?

I would advise you to speak to a mortgage broker, like myself, or a financial advisor and discuss your specific circumstances. If the Election result or Brexit negotiations is creating uncertainty in your life – such as your job security – it may be that you could remortgage now to give yourself a bit more peace of mind.

If you’re looking to buy and selling a property is not an issue, it’s a buyer’s market for the moment and those low interest rates may also work in your favour.

Contact me if you would like to discuss any of the above in more detail or have an informal chat about your specific requirements.

Where to Buy in Surrey if you Commute to London

f you work in London and don’t want to live in the capital, Surrey is a popular choice for commuters. My own town of Farnham is a case in point, both the 06.58 and 07.28 to London Waterloo are packed with bleary-eyed Farnham residents making the 53 min journey up to the smoke.

Farnham is almost the end of the line for most London commuters (certainly it’s a far west as you can go in Surrey). Not many people want to commute for more than an hour; especially when you’ve also got to get from a mainline London station to work in another part of the capital.

Fortunately there are plenty of Surrey towns offering great properties, a great place to live, and a comfortable commute. I’ve been playing with an online calculator from TotallyMoney that helps locate the right commuter town for you. It compares journey time, the cost of a season ticket, life satisfaction and house prices to help narrow your search down.

The ‘life satisfaction’ rating is based on the Office of National Statistics estimates of personal wellbeing for UK local authorities.

Top Commuter Towns In Surrey

Here are the top commuter towns in Surrey:

Redhill

• Travel Time: 31 minutes

• Season Ticket: £3528 p/a

• Life Satisfaction: 8

• House Prices: £409,787.00

Horley

• Travel Time: 35 minutes

• Season Ticket: £4060 p/a

• Life Satisfaction: 8

• House Prices: £410,320.00

Earlswood

• Travel Time: 43 minutes

• Season Ticket: £3580 p/a

• Life Satisfaction: 8

• House Prices: £245,321.00

Epsom

• Travel Time: 37 minutes

• Season Ticket: £2732 p/a

• Life Satisfaction: 7.86

• House Prices: £534,124.00

Woking

• Travel Time: 28 minutes

• Season Ticket: £4256 p/a

• Life Satisfaction: 7.73

• House Prices: £516,562.00

You may have noticed that the top 3 commuter towns according to TotallyMoney are all on the same trainline with the option of going to London Bridge or London Victoria. Redhill and Horley were also on our list of 10 Affordable Places To Buy In Surrey, perhaps another reason to check out these towns if you’re looking to relocate?

Of course, there are many other popular towns in Surrey that don’t make this top 5. Godalming, Haslemere, Chobham, Farnham and surrounding areas etc., all appear regularly in ‘best places to live in Surrey’ lists and many of their residents commute to London. House prices and the cost of a season ticket make them more expensive but no less convenient.

If you’re looking to move to a commuter town in Surrey and need a mortgage, I’d be delighted to talk you through your options. Call 01252 759 233 or email richard@thesurreymortgagebroker.co.uk

Tips for Getting on the Property Ladder in Surrey

The Surrey property market is notoriously competitive and expensive, with prime property getting snapped up very fast. This makes it hard for both local Surrey residents and for anyone wanting to move to Surrey from elsewhere in the UK or overseas.

However, there are ways to increase your chances of finding the perfect home, and getting your offer accepted. Here I share my top tips.

Make Yourself Attractive To Sellers!

I don’t expect you to get a new haircut or a makeover – although if you turn up looking scruffy for a viewing it could count against you, as people do make assumptions about others based on their appearance. However there are other ways to make yourself more attractive to sellers that don’t involve your physical appearance.

Actually the first people you need to impress are the local estate agents. They’re the ones who have the ear of the Seller so if you can make a good impression with them, they’ll help you get taken seriously by sellers.

There are three key areas estate agents and sellers will be interested in:

1. Finances: can you afford the property and do you have the finances in place?

2. Circumstances: do you have a property to sell, are you constrained by any other factors?

3. Flexibility: are you prepared to compromise and be flexible? Whether that’s waiting until the Seller has found a property to buy as well, to compromising on completion dates etc.

So what will appeal to sellers and estate agents?

Cash is king so if you’re a cash buyer you stand a good chance of getting first pickings on any Surrey homes in your price range. Next up are those people who only require a small mortgage, for example investment buyers looking for a buy-to-let or property to do up and sell on.

If you do require a mortgage you probably won’t get through the door of most properties currently on the market without having a mortgage ‘agreement in principle’ (AIP). No one wants to waste time with buyers who haven’t tested whether they can get a mortgage. If you want to see if you can, contact me here to find out.

If you’re a first time buyer you’re very attractive as you won’t need to sell a property and any chain starts with you. If you do need to sell your current home, buyers who are prepared to sell and move into rental are also attractive as they have the potential to be the start of the chain too. Failing that, a buyer who already has accepted an offer on their property is the next best thing, although any chain your side could affect your desirability.

Feeling attractive?

When contacting estate agents it’s really important to make sure they can see your positives. Property experts like Kirsty Allsop even recommend outlining these qualities as bullet points on a record card and giving them to the agent.

Having demonstrated that you’re a great buyer, local estate agents should be getting you in to see lots of suitable properties shouldn’t they? Perhaps not. It’s a competitive market in Surrey and there are lots of other house hunters equally or more qualified than you looking for that elusive home. So don’t sit back and expect them to contact you.

Register on Rightmove, Onthemarket etc. to ensure that you get properties arriving in your inbox when they get added, register with individual estate agents, and be prepared to move fast when they have something to see.

Be open-minded too. If they send you details about a property that doesn’t meet your requirements, give them the benefit of the doubt. This is an opportunity to show your commitment to your search, so that hopefully when something more suitable does come up they will get you in quick. It’s also a chance to build relationships with local agents by chatting about your needs, and it will also help you get your ‘eye in’ when viewing future properties.

House hunting inevitably calls for compromises. By viewing plenty of properties you’ll get a better idea of what ‘must haves’ and ‘nice to haves’ are important to you, and where you’re prepared to compromise.

When you follow up with an estate agent after seeing somewhere you’re not interested in, it’s a good chance to highlight your requirements again and any changes. For example, if the house wasn’t right but the area was, make sure you say that you like the area and you’d be keen to see other properties in that neighbourhood. You may then be the first to know when a new property comes up in that part of Surrey.

Often compromises can turn to your advantage. Many towns and villages in Surrey are very affluent and house prices are high. But sometimes neighbouring towns and residential areas are not as pricey, and these can benefit from the ripple effect as wealth spreads to these areas too. While bargains may be hard to find in Surrey, you could still snap up a property that will see above average growth as the area becomes more desirable.

For more affordable places to buy in Surrey, read this blog.

Finally when you do find a property you want to offer on, make sure you highlight those attractive qualities again. If the Seller has more than one offer this is your chance to differentiate yourself from others. If you’re prepared to offer some flexibility on completion dates etc., now’s the time to make sure the agent conveys these positives to the Seller.

However flexibility is all very well, but money talks. The most important thing you need to do to help your offer get accepted is to make sure your finances add up. If you haven’t yet got a mortgage agreement in principle (AIP), now is the time to do it before starting your search.

To get started call me to chat through your attractiveness! If you need a mortgage to buy your Surrey home an AIP won’t cost you anything, but it’s essential if you want a chance at finding the right property.

Contact me today to get started; call 01252 759 233 or email info@thesurreymortgagebroker.co.uk