A leading mortgage expert has warned that stamp duty rate changes could leave first time buyers thousands of pounds worse off if they fail to complete their purchase by the April 1 deadline.
The housing market is showing signs of strengthening, with surveyors reporting an increase in new buyer enquiries for the fourth consecutive month in October.
But, with three months to go until rates change, first-time buyers will need to be smart to get things completed in time, or risk paying up to £2,500 in stamp duty.
So how do you speed things along, without putting your potential sale or purchase at risk? And is around 100 days realistically enough time to get you there?
Mortgage Expert and Purplebricks Mortgages MD Jo Pocklington said: “Money is often tight when buying your first home so it could be a stretch to find an extra £2,500.
“If you’re hoping to complete before the April deadline, do everything in your power to speed things along. It could mean you have to wait a little longer for that new set of furniture or worse still are priced out of the purchase.”
How to beat stamp duty rise
Speak to a broker as early as possible
A broker is key to helping you get everything underway, advising on the process, on documents required and once you've found your property, will help you to act quickly.
Prepare your documents
Are you organised or does the word paperwork fill you with fear? If the latter sounds like you, it's time to sort yourself out. Having everything ready to go will help pave the way for a smooth purchase.
Ensure you are on the electoral register (this helps with your credit score), gather your last three months’ bank statements, your payslips and details for all your bank accounts.
You will need a proof of deposit, a proof of address (two recent bills will do), so that when you do find the property you want to buy, you can get the information to your broker so they can act quickly.
It’s amazing how many house purchases are delayed through admin hold-ups that are easily avoided by being organised.
Instruct a good conveyancer
Similar to a good broker, a good conveyancer can make or break a deal.
Do your research ahead of time, check reviews and speak to anyone who might know them. Once you’ve decided, set out your expectations for timescales from the word go.
Be proactive
Ensure you regularly communicate with the whole chain and set expectations and timescales that you can make sure are being stuck to.
Get a survey done as quickly as possible
The lender will require a valuation as part of the mortgage offer. If you require a more in depth survey try to act as soon as possible so any potential issues are flagged and identified quickly.
Make sure you deposit is easily accessible
Ensure your deposit is accessible so when you are close to exchanging contracts there’s no delay in accessing the funds. Again, this is a common stumbling block and one that can be easily prevented.
Hassle, hassle and hassle again
There can be few things more frustrating than waiting for your house sale or purchase to go through, and in many cases buyers and sellers can feel powerless in the process.
Your only real recourse is to hassle all the moving parts of the chain, on a regular basis. You may not always be able to get hold of the contact details of everyone in the chain to chase them directly, but you can certainly follow up with your estate agent and solicitor regularly.
You are fully entitled to ask what’s going on and what their next move will be. You can also let all parties know that you’re willing to help, if there’s anything you can do.
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