Making the right home choice

Required Reading


  


Making the right home choice


When you come to choose yourself, it is always worth thinking one step ahead: not only, do you like it, but who else would? You may, for example, see a magnificently large -say four-bedroomed flat which you can just afford. But who could you sell it to when you move? Families are out, because on the whole they will be looking for somewhere with a garden. Most single people will be out, because they are unlikely to be able to afford the purchase price. So are you in fact restricting your future market for buyers to 'successful men-about-town' such as yourself? And is this wise?

What is relevant here is not only the price that you will get for the property -but the speed with which you can sell it. The financial aspects matter just as much here. Not only will you find it desperately inconvenient if you have to wait for months before you receive a reasonable offer; but, if you have in the meantime found another property to move into, you will discover even a few months of a bridging loan a very expensive experience indeed.

A special mention needs to be made here of leasehold property. Most lenders are prepared to grant mortgages on leasehold properties as long as there is a reasonable length of time before the lease expires (see webpage 48). But before you commit yourself you should, again, think one step ahead.

If you intend to sell in, say, five years' time, will there still be ample time left for your buyer to get a mortgage as well? If the lease has 60 years to run, you should be able to get a mortgage; in five to six years' time, however, the lease could be entering the 'danger zone' where a normal 25-year mortgage may prove hard to obtain.

So, however much in your private life you may pride yourself on your magnificent eccentricity, remember when you buy your property that, like it or not, you're entering a mass market. It's a free country, and no one's going to penalise you if you've got bats in the belfry -but, if you choose to live in one, you might find you'll suffer a financial punishment when you're ready to move on.

There are undeniably some disagreeable aspects to getting your first foothold on the housing ladder: it costs money. In the next section we look at the expenses involved. In the following webpages, incidentally, where the words 'building societies' are used, you can generally take them to mean the other lenders as well, that is, primarily the banks.


See: 95% mortgages

Choosing your property


All of us, naturally, hope that our property will turn out to be 'an investment' in the future. We noted earlier that buyers who have done best in the short term in the past are those who have timed their purchase just before one of the booms that have hit the property market in the last decade.

Another way of benefiting disproportionately from your property that has worked in the past has been to buy a run-down house in a run-down area and then to do up the house while, it is hoped, the area is also 'going up', becoming more fashionable, with prices rising to match.

This procedure follows the familiar principle of offering the prospect of greater reward for undergoing greater risk. Although the 1960s . . .... see: Choosing your property


Current Mortgage Offers

  • At Commercialise Yourself you can compare mortgages using our repayment calculator, look for special offers for first time buyers or for 95% loan to value mortgages and see the most popular choices, Nationwide, Accord etc, we now even have a buy to let section for the brave or heart or strong of pocket! You can send us an email if you want to know more about mortgages and what we do and we will get back to you as soon as we are able. offers@commercialise.org.uk

     

    Finding the right mortgage can be stressful, but we’re here to help you every step of the way.

    Even if you have no proof of income, poor credit rating or facing repossession of your home, we can normally say YES (even if the high street lenders have said NO)!

    Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage. The overall cost for comparison is 7.9% APR. The actual rate available will depend upon your circumstances. Ask for a personalised illustration. There will be a fee for mortgage advice. The precise amount will depend upon your circumstances but our average fee is 2.36% of the loan value. We are authorised and regulated by the Financial Services Authority for regulated mortgage and non-investment insurance contracts.