Buying Property FAQ's

Buying a House - Frequently Asked Questions

Question - I have never bought a house before where do I start?

Answer - The first step is to determine you affordability, as most of us need to buy with the help of a mortgage.

Question - How much of a mortgage can I get?

Answer - Mortgage's are normally based on a multiple of your income (i.e. 3.25 x salary).

Question- I have seen a house I am interested in, what do I do?

Answer - The first thing you should do is to have a survey carried out. This will help show any potential costly repairs and give a fair valuation of the property. It's in your interest to have a more detailed survey as well which may disclose structural defects which may not affect the mortgage offer but could put you off buying.

Question- I have heard about stamp duty, what is it?

Answer - Stamp duty may also come as a rude shock to a first time buyer. If the property you are going to buy costs less than £60,000 there is no duty to pay. If the property costs more, there will be a bill - check your tax tables.

Question- Will I need to take out policies to cover my house and mortgage?

Answer - You should also consider taking out a mortgage protection policy. Under the regime introduced in 1995 state help for homeowners who run into difficulties with their mortgage repayments was slashed. Mortgage protection policies pay a monthly sum which you can set yourself to cover the interest on your mortgage, interest and capital or you can include the endowment premium as well and perhaps even some monthly household bills such as buildings insurance and water rates.

Exact policy terms will vary but in general the policies will require you to have been in continuous employment between three and six months before purchasing the insurance and you will be unable to make a claim on the policy until it has run for a set period, usually three months. It is unlikely that you will find a policy which will pay out for more than two years at most. Policy costs vary from around £7 per £100 down to £3.50 per £100 for cut-price policies which provide limited cover.

Question-I have heard about subsidence, what is it?

Answer - If you're buying a second-hand property (and most of us do) you may be concerned about the risk of subsidence
. But before you panic about that crack that's appeared in the wall, remember many small cracks happen naturally as houses age. They most likely do not require expensive repairs and should not spell disaster. Subsidence depends on the soil on which a house is built and on the age of the property. Those built before 1960 are likely to be more vulnerable because foundations tend to be shallower.

Question-What guarantees do I get with a new house?

Answer - New properties and recently built properties should have an NHBC Buildmark Warranty. The National House Building Council (NHBC) is a non-profit making body with a register of around 25,000 builders and developers. NHBC inspectors examine new properties and, providing the builder is registered and the property meets standards drawn up by the NHBC, they will a certificate of sound construction. This offers substantial insurance protection against any building faults or structural defects for a period of 10 years up to a maximum liability of the original purchase price adjusted to take account of inflation.

Question How to I go about building my own house?

Answer - If you can't find a property you want to buy, you could always build it! Almost 30,000 people around the country every year cut out the middle-man and built their own homes but you don't have to be an expert bricklayer or plasterer - most so-called self-builders employ someone else to do the actual construction. Completed self-build homes are often valued at a third to a half more than the total outlay for land, labour and materials.

In addition to this, you may reclaim the Value-added Tax (VAT) on materials and labour in the construction of the house, provided you do so within three months of completion -this can amount to several thousand pounds you will get back! However, remember, if you build without permission or not in the place agreed, you could be legally forced to demolish the property!

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