What should you consider when selling and buying a new home?

 

• Understand market conditions, is it a buyer or sellers’ market? 
• Price your home competitively 
• When selling, be prepared to negotiate and potentially accommodate any lower offers on negotiating on your purchase. 
• Determine your budget: speak to us about the various costs of moving. 
• Speak to us about your mortgage affordability levels and the associated monthly costs. 
• Look to have an agreement in principle with a lender prior to viewing. We can advise you on this and provide this document. 
• Be prepared with solicitors’ details in advance of viewing, we can assist by approaching 9 law firms on your behalf to determine the lowest costs. 

Different types of mortgages available in the UK

Whether you’re a first-time buyer, looking to remortgage, or considering a buy-to-let investment, understanding these options will help you make an informed decision:

1. Fixed-Rate Mortgages:

   • How They Work: With a fixed-rate mortgage, your interest rate remains constant for a specified period (e.g., 2, 5, or 10 years).
   • Pros: Predictable payments, protection against interest rate fluctuations.
   • Cons: Potentially higher initial rates compared to variable mortgages.

2. Variable Mortgages:

   • Types:
     • Standard Variable Rate (SVR): The lender’s default rate, which can change at any time.
     • Tracker Mortgages: Linked to an external rate (e.g., Bank of England base rate) plus a margin.
     • Discounted Rate Mortgages: Offer a discount off the lender’s SVR for a specific period.
   • Pros: Flexibility, potential savings if rates decrease.
   • Cons: Uncertainty due to rate fluctuations.

3. Buy-to-Let Mortgages:

   • How They Work: Designed for property investors. Interest rates may differ from residential mortgages.
   • Pros: Opportunity for rental income and capital appreciation.
   • Cons: Stricter eligibility criteria, higher rates.

Remember that mortgage rates and terms vary among lenders, so it’s essential to compare offers. Contact Philip at Eden Associates to find the best mortgage rates tailored to your needs.

Philip@edenassociates.uk.com

07487 508 358

 Happy house hunting! 🏠

The Charm of Buy-to-Let in the UK

The UK’s buy-to-let market has consistently been a beacon for astute investors looking to make the most of the nation’s strong rental demand. Despite the fluctuations of the economy, the charm of buy-to-let remains strong, offering a mix of passive income and the chance for capital appreciation. Here’s why buy-to-let continues to be an attractive investment opportunity in the UK.

A Reliable Income Stream

A primary draw to invest in buy-to-let properties is the prospect of a reliable rental income. With the average gross rental yield in the UK currently at about 5.60%, investors can look forward to a steady return on their investments. This is especially appealing in today’s economic climate where passive income sources are greatly valued.

Growth in Capital Value

In addition to the monthly rental income, buy-to-let properties often increase in value over time. This means that investors benefit from immediate income and also enjoy long-term capital growth. It’s a dual strategy for wealth building that has been successful for many investors.

High Demand in Prime Locations

Specific regions in the UK, particularly in the North East and Scotland, boast average gross yields surpassing the national average, with some reaching up to 8%. Cities like Sunderland, Aberdeen, and Burnley are prime locations for investors, promising handsome returns for those who invest wisely.

Prestigious Postcodes

For those seeking prestige, London’s esteemed postcodes offer an extra layer of appeal. Although the yields might be lower due to the higher property prices, the prestige of owning property in one of the world’s most sought-after cities is unparalleled.

A Strong Rental Market

The UK’s rental market is marked by a persistent imbalance between supply and demand, leading to a steady increase in rents. This enduring demand ensures that buy-to-let properties are seldom without tenants, making it a relatively secure investment.

The Appeal of Property

There’s a distinct allure to investing in something tangible. Property is a physical asset that you can see, improve, and feel connected to. It’s a stark contrast to the abstract nature of stocks and shares, and for many, this physical aspect of buy-to-let investing is part of its appeal.

Conclusion

Buy-to-let in the UK is more than just an investment; it’s a testament to the lasting value of property. It’s a means to generate income, accrue wealth, and potentially leave a legacy. With careful selection of location and yield, buy-to-let can be a charming addition to any investment portfolio.

Are you contemplating becoming a landlord or expanding your property portfolio? The UK’s buy-to-let market is brimming with potential for those who know where to look. With the right property and strategic location, your investment could thrive in this perennially popular sector of the real estate market. Contact Philip at Eden Associates to discuss further if you would like to fine out more information on buy-to-let.

Philip@edenassociates.uk.com

07487 508 358

What are the stamp duty rates in the UK?

Stamp Duty Land Tax (SDLT) is a tax paid on property purchases in the UK. The current SDLT rates for residential properties are as follows:

• 0% on properties up to £250,000
• 5% on the portion from £250,001 to £925,000
• 10% on the portion from £925,001 to £1.5 million
• 12% on the remaining amount above £1.5 million

For first-time buyers, there’s a relief that increases the zero tax threshold to £425,000, and they pay:

• 0% on properties up to £425,000
• 5% on the portion from £425,001 to £625,000

If the property price is over £625,000, first-time buyers follow the same rates as other buyers¹.

Please note that these rates apply to England and Northern Ireland. Scotland and Wales have their own tax systems: Land and Buildings Transaction Tax (LBTT) in Scotland, and Land Transaction Tax (LTT) in Wales².

It’s always a good idea to use the SDLT calculator provided by HMRC to get an accurate figure for your specific situation¹. If you’re buying a new home, this will be an important part of your budgeting process.

Above rates correct as of May 2024 and could be subject to change in the future.

For mortgage advice, contact Philip Messinger at philip@edenassociates.uk.com or call 07487 508 358

Mortgages: First Time Buyers

Whether you’re a young professional, a couple starting a family, or someone looking to invest, understanding the mortgage landscape is crucial. Here’s a comprehensive guide to help you get started:

1. First-Time Buyer Mortgages: An Overview

• What is a Mortgage? A mortgage is a loan that allows you to buy a property. You borrow money from a lender (usually a bank or building society) and repay it over time, typically with interest.
• Types of Mortgages for First-Time Buyers:
  • Fixed-Rate Mortgages: These offer a set interest rate over a specific period (usually 2, 3, or 5 years). Your monthly payments remain consistent during this period.
  • Tracker Mortgages: The interest rate “tracks” the Bank of England Base Rate at a certain percentage above. If the base rate changes, your mortgage rate adjusts accordingly.
  • Offset Mortgages: These link your savings to your mortgage, reducing the overall amount you pay interest on
  • Helping Hand Mortgages: Borrow up to 20% more with a 5- or 10-year fixed-rate mortgage (conditions apply).
  • 95% Mortgages: If saving for a deposit is challenging, consider mortgages with up to 95% Loan To Value (LTV)

2. Steps to Buying Your First Home

• Calculate How Much You Can Borrow:
  • Use a mortgage calculator to estimate your borrowing capacity based on your income, property value, and deposit amount.
• Compare Mortgage Rates:
  • Research different lenders and compare their rates for first-time buyers.
• Get a Decision in Principle (DIP):
  • Obtain a DIP before applying for a mortgage. It shows how much a lender is willing to lend you and won’t affect your credit rating.
• Affordable Home Schemes:
  • If affordability is a concern, explore government-backed schemes like the First Homes Scheme in England, which offers reduced-price properties for first-time buyers.

3. Boosting Your Chances of Mortgage Acceptance

• Improve Your Credit Rating:
  • Pay bills on time, reduce outstanding debts, and avoid unnecessary credit applications.
• Save for a Deposit:
  • Aim for at least a 5% deposit, but the more you save, the better your mortgage options.
• Understand Fees and Costs:
  • Learn about additional costs such as legal fees, stamp duty, and survey fees.
• Seek Professional Advice:
  • Consider consulting a mortgage broker or financial advisor to guide you through the process.

Remember, buying your first home is an exciting journey, but it’s essential to be well-informed. Explore resources like the Money Saving's Expert for detailed information. 

Contact Philip Messinger at philip@edenassociates.uk.com or call 07487 508 358

Good luck on your home-buying adventure! 🏡

Welcome to Our Newspage

 Buying a property can be the biggest decision made in our lives. It is for this very reason that impartial advice is critical from competent and qualified advisers. Whether you are a first time buyer, looking to remortgage or even looking to purchase a second home, this is where our advisers excel. Be reassured that our style is to guarantee reliable mortgage advice appropriate to any individual that makes contact with us.

Putting customers at the heart of my business means that at every stage of the advice process, customers can expect an honest, transparent, efficient and professional service. I can help you through the full process from buying to selling and recommend a trusted solicitor or estate agent to compliment our service. All you have you do is sit back and relax and everything else will be taken care off for you., making your purchase as stress free as possible.