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Tag: Medway Mortgage

What is a qualified buyer?

Posted on by Sophie Winter

Have you ever heard the term “qualified buyer”? Estate agents often use it, and it’s important to understand about the phrase when selling your home. But what does it really mean, and why should you care?

What does a qualified buyer mean?

A “qualified buyer” refers to someone whose financial and purchasing position has been confirmed by the estate agent. Agents register buyers and match them with properties that fit their criteria, much like a matchmaking process for homes. This helps reduce wasted viewings, as buyers are only shown properties that meet their needs.

However, qualifying a buyer goes beyond preferences like the number of bedrooms. It’s about confirming their financial readiness. This ensures you don’t waste time preparing for viewings or get your hopes up over offers that can’t be followed through.

When an agent says a buyer is “qualified,” it means:

  • They’ve confirmed their ability to make the purchase. This inlcudes whether they need to sell a property first or serve notice to a landlord.
  • They’ve provided proof of how they’ll fund the purchase. Whether it’s through cash, a mortgage, or the sale of another property.
  • They’ve shared the status of their own property sale. Whether it’s already on the market, under offer, or ready for sale.

Why is this important?

Imagine receiving a great offer on your home, only to find out later that the buyer still needs to sell their property, which isn’t even listed yet. This could cause significant delays or even a collapsed sale. Knowing a buyer’s financial position upfront gives you confidence that the offer is genuine and that the sale can move forward smoothly.

Your agent will also use this information to gauge how quickly each buyer can proceed. This ensuring that the process aligns with your needs. For example, a cash buyer ready to move in four weeks may not suit you if you’re not in a rush.

Knowledge is key

Understanding the buyer’s position from the start helps you plan effectively, save time, and avoid potential pitfalls. If this is new to you, reach out to our team for expert advice and ensure you’re fully prepared for a successful sale.

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Mortgage Advice: finding the right deal for you

Posted on by Sophie Winter

When it comes to getting mortgage advice or securing a mortgage, many people head straight to their bank or building society, often where they hold their current accounts. While this is a common approach, it may limit your options and prevent you from finding the best deal.

To ensure you find the most suitable mortgage for your specific needs, it’s essential to explore a broader range of choices. This is where the difference between going direct to a lender and using a mortgage adviser becomes critical. As estate agents, we work closely with the mortgage advisers at The Residential Mortgage Hub (also known as a mortgage broker) who have access to an extensive range of mortgage deals available across the market.

Why speak to a mortgage adviser?

A mortgage adviser plays an important role in helping you navigate the mortgage landscape. With access to thousands of mortgage products from multiple lenders, they can provide expert mortgage advice that’s tailored to your financial situation. By working with a mortgage adviser early in the process, you gain valuable insight into the options available to you, even before you start searching for a property.

A mortgage adviser will:

  • Explain the first steps in getting a mortgage.
  • Guide you on the necessary financial research and budgeting.
  • Help you save for your deposit.
  • Search for the right mortgage deal and handle the application process on your behalf.

With their expert mortgage advice, they can even provide a clear understanding of how much you may be able to borrow using their budget planning tools. This insight is invaluable when you reach the exciting stage of looking for your new home.

Finding the right mortgage for your needs

Once you’ve saved your deposit and found a property, your mortgage adviser will search thousands of deals from a wide variety of lenders.

They understand the mortgage market, and more importantly, which lenders are likely to approve your mortgage based on your individual circumstances and the type of property you’re purchasing. Not all lenders will approve mortgages for every buyer or every property type, so having professional mortgage advice can make all the difference.

With an experienced adviser by your side, you’ll be less likely to face the disappointment of a mortgage rejection, giving you peace of mind throughout the home-buying process.

They handle your mortgage application for you

After finding the right mortgage for you, they’ll manage the entire application for you. From handling the paperwork to liaising with surveyors and your legal team, they’ll save you time and ensure everything is in order. They will also keep you informed at every stage and are always available to answer any questions you may have, no matter how small they seem.

Mortgage protection insurance

Beyond your mortgage, you’ll need to consider essential protection policies such as buildings and contents insurance, as well as life and critical illness cover. These are important steps to safeguard your home in the event of unforeseen circumstances.

Their mortgage advisers, are also qualified to provide advice on these insurance options. They’ll shop around for the most suitable policies for you, taking care of the paperwork so you can focus on your new home with confidence and security.

Book your appointment with The Residential Mortgage Hub

Buying a home can be a stressful process, but with the right mortgage advice, they can make it a lot easier. Book an appointment with one of their mortgage advisers today, either online or by calling 01634 968111!

Important information

Your home may be repossessed if you do not keep up repayments on your mortgage. There may be a fee for mortgage advice. The actual amount will depend upon your circumstances. The fee is up to 1% but a typical fee is £598. For insurance business we offer products from a choice of insurers. As with all insurance policies, conditions and exclusions will apply.

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A homebuyer’s guide to changing mortgage rates

Posted on by Sophie Winter

Mortgage interest rates are falling, which is encouraging, but recent fluctuations can be a bit unsettling. That’s why we’ve made this guide to help you understand how you can insulate against changing interest rates.

You might be able to move home without altering your mortgage.

If you want to move and take your existing mortgage rate, which is lower than the current rates, porting your mortgage can be a great option. This allows you to transfer your current mortgage to your new home. Additionally, you might be able to borrow extra funds, but keep in mind that terms vary between mortgage providers.

Fix your interest rate 

Variable interest rates are typically higher than fixed rates, and many people prefer the stability and predictability of fixed-rate mortgages. However, if variable rates drop below current fixed rates, you save money. This usually occurs when interest rates are very low. If you intend to keep your property for a short time, a variable-rate mortgage might be suitable. It’s important to remember that there are many types of mortgages to consider and a mortgage broker such as The Residential Mortgage Hub can help you understand more about your options.

Explore different mortgage types 

With thousands of mortgage products available, it’s important to find the best deal for you. An offset mortgage lets you use your savings to reduce your mortgage balance, resulting in lower interest payments. Guarantor mortgages and 5% deposit mortgages can help you in making your first or next property purchase, while interest-only mortgages are often beneficial for buy-to-let investors.

Talk to a mortgage adviser    

A larger deposit also results in paying less interest. The expertise and guidance of a good mortgage adviser can boost your confidence when applying for a mortgage. A quick discussion with them can save you both time and money!

Higher mortgage rates can lead to a better deal  

As mortgage rates decline, property prices often rise due to increased demand. Consequently, the contrast between higher mortgage rates and lower purchase prices may not necessarily result in reduced mortgage repayments while waiting for interest rates to drop. In a stable market, fluctuations in mortgage rates are typically nothing to fret about and can even present opportunities for better deals. Additionally, selecting the right property significantly influences securing your future as you negotiate the offer price. A market characterised by a balanced pace without intense competition also creates a more favourable environment for buying.

How can we help you?

Moving to your perfect home is always easier with the right help. Contact our team of industry experts today for help and guidance, simply contact our office on 01634 570057.

Important information

Your home may be repossessed if you do not keep up repayments on your mortgage.

There may be a fee for mortgage advice. The actual amount will depend upon your circumstances. The fee is up to 1% but a typical fee is £598.

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Buying a home: common questions asked by first-time buyers

Posted on by Sophie Winter

Starting the journey to becoming a first-time homeowner means navigating through a maze of industry jargon, documents, and processes. For those new to the home-buying process, it can be a big learning curve.

We’ve spoken to our team of experts to find out what reoccurring questions our buyers have asked – and then we’ve listed out all the answers for you in this helpful guide.

How do I make an offer on a property?

Your offer will need to be submitted to the selling agent, and we would always recommended to do so in writing as well.

You should provide as much detail as possible to support your offer; this helps the current owner of the property to make an informed decision. This will need to include information about your deposit (including proof of funds, such as a bank statement or accountant’s letter), whether you have a mortgage offer secured, your desired timeframe, and details of your solicitor.

It’s worth noting that in some cases sellers may have multiple offers all equating to the same value, so it’s worthwhile expressing your love and enthusiasm for the property.

Can I offer on two properties?

In principle, you’re free to make offers on as many properties as you wish. Offers don’t carry legal obligations, and are often only chargeable after an offer is accepted, prompting the hiring of surveyors and similar services.

However, it is worth noting that submitting multiple offers may portray you as indecisive and unreliable as a buyer.

What is a good opening offer?

Different buyers approach their initial offer differently: some may propose an amount below the seller’s asking price, while others might offer the full amount right away.

A recommended strategy is to offer between 5% and 10% less than the market price, ensuring there’s room for negotiation by staying below your maximum limit.

It’s also wise to research house prices in the area, considering factors like square footage and number of rooms. This information will help you make sure you are putting in a fair offer.

Do I need to have a mortgage before making an offer?

Although you cannot finalise your mortgage application until after your offer has been accepted, you can obtain an agreement/mortgage in principle (AIP/MIP) before starting your property search.

An AIP/MIP shows the amount a mortgage lender may potentially loan you for purchasing a property. This is used as evidence to sellers that you’re a serious buyer with good prospects of securing the necessary financing.

Obtaining an AIP/MIP is a quick and straightforward process, our partnered Mortgage Broker, The Residential Mortgage Hub will be able to assist you with this if you’re looking for help.

When do I put an offer on a property?

The timing for making an offer on a property rests on two key factors:

  • The level of competition for the property you’re interested in.
  • How quick you can make a decision on the amount you want to offer.

In a market with high buyer demand, making an offer quickly is necessary. However, it’s crucial to allocate sufficient time to carefully consider the offer amount you’re comfortable with.

What are the main costs of buying a property?

Purchasing a home comes with significant expenses, particularly saving for the deposit, which is often the greatest hurdle for first-time buyers.

Typically, you’ll need to provide a deposit of at least 5% of the property price. According to Halifax’s latest data, the average deposit stands at 21%. However, aside from the deposit, there are numerous other costs to consider.

Before starting property viewings, it’s advisable to familiarise yourself with the various fees you’ll encounter along the way to avoid any unpleasant surprises.

  • Conveyancing Fees: You will normally need a solicitor or conveyancer to facilitate the property purchase. Anticipate spending between £500 and £1,500 for these services.
  • Land Registry Fee: The Land Registry maintains records of all registered properties in England and Wales. While your solicitor may incorporate this fee into their conveyancing package, it’s important to check. Fees typically range from £90 to £140, depending on the purchase price.
  • Stamp Duty: Stamp duty is a mandatory payment on properties above a certain price threshold. The amount varies depending on the property’s value. You can use a stamp duty calculator to estimate your payment.
  • Homebuyer Survey: A thorough homebuyer survey assesses the property’s condition, potentially uncovering issues and serving as a bargaining tool. Costs vary between £400 and £1,500.
  • Mortgage Fee: Lenders often charge a fee for setting up the loan, typically between £1,000 and £2,000. Some lenders may allow you to add this fee to the mortgage amount.
  • Valuation Fees: Mortgage lenders may charge valuation fees to ensure the property’s value aligns with the purchase price. Expect to pay between £160 and £600.
  • Mortgage Broker: If you are considering using a mortgage broker, they may charge a fee ranging from £300 to £2,000.
  • Moving Costs: Costs vary based on the amount of furniture and distance traveled. The average cost for a 3-bedroom house moving 50 miles is £1,181.
  • Building Insurance: Most mortgage lenders require building insurance, averaging £110 annually.

Do I need a mortgage broker?

While it’s not mandatory, using the services of a mortgage broker can be highly beneficial, especially for those unfamiliar with mortgage processes. Mortgage brokers have access to many loan options that may not be readily accessible elsewhere, including exclusive deals and notifications of limited-time mortgage deals tailored for certain individuals needs.

Got any other questions?

Our team of industry experts are here to help and answer any of your questions about the home buying process. Simply contact our office on 01634 570057.

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How long does a valuation take?

Posted on by Sophie Winter

When looking to sell your home, getting at least one valuation is essential for determining a reasonable asking price. But what exactly is involved in a valuation? Who conducts it, and what’s the typical timeframe for a house valuation?

Our team of property experts have created this easy-to-read guide to provide you with the answers you need.

What to expect at a valuation

As an estate agent we will assess your home’s worth based on factors like its location, condition, market trends, and size.

We advise that you prepare your home for valuation much like you would for a viewing: clean, tidy, and decluttered to showcase its best features. Our property partners will take photographs for advertising purposes at a later date, but you want to showcase the full potential of your property so that we can decide on its maximum value.

During the valuation process, you can take advantage of the opportunity to ask advice on any minor repairs or cosmetic improvements that might improve your chances of making a sale.

At the valuation’s conclusion, we will provide you with an estimated value, possibly in a range (e.g., £220,000 to £227,000), giving you the discretion to set the asking price. We will also share details of comparable local sales and listings to provide context to our valuation.

An accurate valuation is important for a successful sale, and as local agents we are much better placed to provide a valuation that reflects the current market, supply and demand and local trends accurately. It’s important to note that, a property valuation differs from a mortgage lender’s valuation, which is typically less comprehensive.

Contact us today for a complimentary property valuation!

What are we looking for during a property valuation?

When valuing your home, we will take into account the following factors:

  • Location – As a local estate agent we have an excellent understanding of the area, including knowledge of the most sought-after road and postcodes. Factors such as proximity to amenities, transportation links, flood risk, and access to green spaces are all taken into consideration.
  • Property type – The demand for different types of properties varies across time and regions. Period properties might be highly sought after in some areas, while modern homes are more popular in others. As an estate agent, we understand the local market and current trends which is crucial for accurately valuing your property.
  • Number of bedrooms – Generally, a property with more bedrooms will be valued at a higher price, even if another property in the same area has more floor space or a larger plot. However, if a property has a lot of bedrooms but limited living or outdoor space, the asking price may be lower than a comparable property with a better balance. Families searching for ample space throughout the home are often drawn to properties with multiple bedrooms.
  • Parking – Off-road parking is a valuable feature that can increase a home’s value by approximately 10%. Not only does it offer convenience, but a parking space or drive can also lower insurance costs.
  • Property condition – Significant issues like damp or a damaged roof can reduce a property’s valuation. Buyers often factor in the estimated cost of necessary repairs or improvements when making offers. Therefore, the asking price should align with the property’s condition and the costs associated with improving it.
  • Recent sales of similar properties – As an estate agent, we rely on information about recent sales of comparable properties in the area to determine the appropriate asking price. These sales reflect current market conditions, buyer preferences, and demand for various property types.
  • Plot size – If you have land with your property, our experts will offer an insight into the value of land and property per square foot in your specific location. Typically, the larger the plot of land on which a property stands, the higher the asking price.

If you have land that you are looking to sell, please get in contact with our Land and New Homes Department on 01634 570057.

How long does a valuation take?

We typically recommend allocating about thirty minutes to an hour for a house valuation. Although it may be completed in as little as 15 minutes!

We always recommend allocating some extra time, so you have the opportunity to ask any questions regarding the sale. Remember a valuation is not only about getting an idea of the price. It’s also an opportunity to get some tips on how to help your home sell and to see if you like an estate agent. Consider asking the following questions to help in your decision-making process:

  • Have you recently sold any properties similar to mine?
  • What is the average duration for selling a property in your experience?
  • Have you sold any homes on my street or nearby?
  • Can you suggest any repairs or enhancements that could benefit the saleability of my home?
  • What services are included in your fee?
  • Do you provide professional photography services?
  • Do you have any client testimonials or reviews available for reference?

How long is a valuation valid for?

A property valuation typically remains valid for six months. The housing market can change quickly. So, if you do not sell within six months of having your home valued, it’s a good idea to get it valued again. Additionally, it’s advisable to request a fresh set of valuations if significant changes are made to the property. Even minor home improvements have the potential to impact the property’s value positively.

Who can value my property?

Property valuations can be conducted by either an estate agent or a qualified surveyor. It’s advisable to obtain valuations from two or three professionals to gain an accurate understanding of your home’s value.

It’s important to note that opting for the highest valuation isn’t always the wisest decision. Some estate agents may inflate property values to secure your business, and overpricing can result in underselling.

Are you looking for a property valuation?

If you’re thinking about selling or want an estimate of its potential value, feel free to reach out to our experts today. Fill out this quick and easy online form and our team will be in touch.

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Why use a mortgage adviser?

Posted on by Sophie Winter

When searching for a mortgage, is it better to use a mortgage adviser or approach a bank or building society directly? Keep reading to understand the benefits of getting mortgage advice from an expert.

What does a mortgage adviser do?

A mortgage adviser acts as an intermediary between borrowers and lenders. They gather offers from multiple lenders, and help you to become mortgage-ready. Additionally, they gather important financial details like income, assets, employment records, credit reports, and other relevant information to evaluate your affordability. This information is then forwarded to potential lenders.

Using a mortgage adviser can make the mortgage application process much smoother compared to navigating it solo. In addition to offering expert guidance, they act as a liaison between you and various potential lenders, guaranteeing they secure a deal tailored to your specific requirements and preferences.

When is the best time to get advice?

For the best time and money savings, we advise reaching out to a mortgage adviser at the start of your property search. This approach ensures your adviser is well-informed with your entire mortgage process, and can help you steer clear of any mistakes you might otherwise overlook.

What are the downsides of not using a mortgage adviser?

  • Lacking the guidance of a adviser increases the risk of securing a mortgage deal that may not align with your best interests.
  • Errors in completing your application or not meeting the lender’s criteria could lead to rejection.
  • You’ll miss out on exclusive deals and rates available through adviser, and without a middleman, you’ll need to directly communicate with lenders.

Why not just go directly to lenders?

Some opt to approach a lender directly, such as a bank or building society, rather than using a mortgage adviser, often due to their preference for familiarity. Some may feel inclined to maintain loyalty to their bank, particularly if they’ve been banking with them for an extended period and value the personal interaction.

While you might be more familiar with a lender because of your longstanding banking relationship, it doesn’t guarantee they will offer you the best mortgage deals. Lenders typically have their own range of mortgage options and may not present alternatives beyond their offerings, limiting your access to the full range of available deals.

Are you in need of assistance determining your next steps?

Everyones circumstances are different, and there isn’t a universally correct way to securing a mortgage. We can’t tell you which path to choose, but if you want to get honest, trustworthy mortgage advice, reach out to our partnered mortgage broker The Residential Mortgage Hub today. Their team of advisers will help you work out what you need and what next steps to take.

If you’re looking to sell or let a property please get in touch with a our experts at CR Real Estate today.

Important information

Your home may be repossessed if you do not keep up repayments on your mortgage.

There may be a fee for mortgage advice. The actual amount will depend upon your circumstances. The fee is up to 1% but a typical fee is £598.

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