Guide to home buying and remortgages by vpb11525


									Guide to home buying
and remortgages

1.   Buying a new home
     •   Introduction
     •   How much can you borrow?
     •   Can you afford it?
     •   Decision in principle
     •   Starting to look for your new home
     •   Your offer has been accepted
     •   Applying for a mortgage
     •   Finding a solicitor
     •   Arranging a survey or valuation
     •   Exchanging contracts
     •   Arranging removals
     •   Arranging buildings and contents insurance
     •   Moving in!
     •   Key dates
     •   Who to inform, now you have moved

2.    Remortgaging
     •   How does it work?
     •   How much does it cost?
     •   When should you re-mortgage?
     •   Can you borrow more?
     •   Will you need a solicitor?

3.   Glossary of terms

     Call our mortgage consultant now on 0800 373352 to arrange your
     appointment or visit our website - mortgages

No matter what stage you're at in the home buying process the one thing you'll need is advice and guidance to help you
make the right decisions.
Buying a home and arranging a mortgage can seem like daunting tasks but if you take it one step at a time, you can make
it as smooth as possible.
At Teachers Assurance we've been providing products and services to the education sector for over 130 years. That's why
when we launched our mortgage service we designed it to suit you:-
•   It's run via our UK based call centre so you don't need to trawl the high street or search the internet - we'll do all the
    hard work for you and search from our selected panel of lenders
•   We're open at hours to suit you and will arrange an appointment around your busy schedule
•   We'll help you budget and work out what you can really afford
•   We'll guide you through the whole buying (and selling) process
•   We've included check lists and action plans that will help you make sense of the jargon and paperwork
•   We won't charge you a fee and we will check that the rate you've got is the most suitable for your circumstances from
    our panel of lenders
Our mortgage service has been designed to help you whatever your
current position is by offering you a comprehensive mortgage service
by phone. We’ll recommend the type of mortgage that best suits
your needs, and explain how they work:-
•   If you've already got a mortgage but want to borrow more
    we'll help guide you as the best way to do this, subject to
    lenders terms and conditions.
•   If you're a first time buyer looking for a competitive loan
•   If you're not sure whether the rate you're currently paying is
    competitive in the market place
•   If you are buying through a Shared Ownership or
    Shared Equity scheme we can explain how it works
    and help find the most appropriate product for you

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

    Call our mortgage consultant now on 0800 373352 to arrange your
    appointment or visit our website - mortgages

Buying a new home
How much can you borrow?
Before you start looking at property you will need to know how much you can borrow and how much it will cost you.
The amount you can borrow is usually based on 2 components:-
The amount you have as a deposit
The amount of income you have
As a rough guide the average amounts you can borrow on your income will be:
•   A single applicant may be able to borrow up to 4.5 times salary.
•   Joint applicants may be able to borrow up to 4.2 times salary.
For your deposit you will usually need deposit of between 10% and 20% of the property value.
All mortgage lenders have specific terms and conditions which is where our mortgage team will be able to advise you before
you start.
When you speak to our Mortgage Consultant on the number shown below we will be able to tell you how much a lender will
be likely to lend to you and how much it will cost.
They will also be able to provide you with professional advice on the different types of mortgage available to you.
They will also be able to approach a lender to get a decision in principle for
you (See Page 6 for more information).

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

    Call our mortgage consultant now on 0800 373352 to arrange your
    appointment or visit our website - mortgages

How much can you afford to borrow?
The following budget planner will help you to think about how much it will cost you to buy a new property and, how much
your monthly expenses will be once you have moved in.

  Cost                                    £                        Anticipated outgoings                   £

  Deposit                                                          Mortgage payment

  Stamp Duty                                                       Life cover

  Estate agents fees                                               Buildings/contents insurance

  Valuation/survey fee                                             Endowment policy

  Solicitors fees                                                  Payment protection

  Lenders legal fees                                               Ground rent / service charge

  Local authority search                                           Council tax

  Land registry search                                             Electricity

  Home renovations                                                 Gas

  Moving/removal costs                                             Water / sewage

  Storage                                                          Telephone

  Other                                                            TV licence

  Other                                                            Loans

  Total                                                            Credit cards

                                                                   Store cards

                       Budget Planner                              Food / housekeeping

  Monthly income                          £                        Transport

  Main wage                                                        Holidays

  Main wage                                                        Entertainments

  Commission bonus                                                 Total

  Investment income



   Call our mortgage consultant now on 0800 373352 to arrange your
   appointment or visit our website - mortgages

Decision in Principle
Our Mortgage Consultant will discuss your requirements with you over the phone and advise you on the most suitable
lender, mortgage type and interest rate deal for your particular circumstances.
Once you've discussed your initial plans and to help you establish what you can borrow before you go looking for your new
home, our Mortgage Consultant can then obtain a Decision in Principle for you, from a suitable lender.
A Decision in Principle will confirm how much your chosen lender is happy to lend to you - subject to survey and
underwriting checks.
To arrive at this decision, our Mortgage Consultant will give the lender details of how much you are looking to borrow, the
value of the property and your income details. The lender will then look at your credit history and make their decision.
You can then confirm to estate agents and vendors that the lender has confirmed your borrowing, subject to conditions and
this will put you in a better bargaining position than a purchaser that does not have their mortgage already agreed.
It is important not to have too many credit checks done in a short period of time, as this could work against you when
applying for a loan or mortgage.
We offer a range of mortgage deals from a panel of lenders, including
many High Street names.
We do not charge you a fee for the advice you receive or for
arranging your mortgage. Instead, we receive a fee from the lender,
once your mortgage is completed. The Lender may charge you an
arrangement or booking fee.

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

   Call our mortgage consultant now on 0800 373352 to arrange your
   appointment or visit our website - mortgages

Start looking for your new home
Once you've established what you can afford to borrow then the fun begins. Register with a selection of estate agents in
your area and discuss what you are looking for in your new home. At this point your estate agent may ask to see details of
the amount that has been agreed and evidence of the decision in principle from your lender. It's also a good idea to write
down a list of the things that are essential to you in your new home such as how many bedrooms, whether you require a
garden or a garage. You'll then be able to give the estate agent a detailed specification of what you are looking for.
It is advisable to look at a few properties before making an offer - even if you fall in love with the first property you view!
Remember that when you visit an estate agent you are not obliged to take their own
financial adviser's products or services.
Once you have decided that a particular property is for you,
the next step is to make an offer.
There are no rules as to how much you have to offer, but it
is a good idea to work out what your maximum offer would be
before you start. Have a look at what similar properties may have
sold for in the local area.
At this stage it is a good idea to put forward any other factors that
may be in your favour. For example if you are a first time buyer you
could be in a position where you can move more quickly than other
buyers that are part of a chain.

Your offer has been accepted
Once your offer is accepted get in touch with our Mortgage Consultant, they will then
process your full mortgage application. It's at this stage that you will also now need
to arrange and instruct a solicitor.

   Call our mortgage consultant now on 0800 373352 to arrange your
   appointment or visit our website - mortgages

Applying for a mortgage
Our Mortgage Consultant will complete the paperwork for you, over the telephone, so you can arrange your mortgage from
the comfort of your own home, at a time to suit you.
You will be asked to send in some documents, such as your passport or driving licence, to check your identity. Our Mortgage
Consultant will explain what is required. These documents will be returned to you in a secure manner and without delay.

Finding a solicitor
When looking for your solicitor, ask friends or family if they have used a solicitor that they can recommend - this is important
as the solicitor could have the biggest impact on how quickly or smoothly your purchase goes.
As well as conducting your searches the solicitor will provide you with a list of fixtures and fittings for the house that you are
buying. Check this carefully to ensure that you are getting what you expected as far as fixtures and fittings are concerned.

Arranging a survey or valuation
Now is also the time to arrange your survey or valuation. The lender will carry out their own basic valuation (often called a
valuation for mortgage purposes).
You will also have the option at this stage to take out a more in depth survey for your own purposes.
Our Mortgage Consultant will be able to advise you on the different types of survey available and how much they will cost.
There are different surveys available to suit your needs, budget and the peace of mind that you require.

Exchanging contracts
Once your solicitor has completed all of your searches
and the contracts have been drawn up your solicitor
will exchange contracts for you.
At this point the sale becomes legally binding and
your deposit will be payable. You should be able to
arrange your completion date.

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

   Call our mortgage consultant now on 0800 373352 to arrange your
   appointment or visit our website - mortgages

Arranging removals
Once you know the date that you'll be moving, make your moving arrangements.
If using a removal firm, shop around as prices can vary considerably and if arranging a self drive van or similar make sure you
hire one big enough - people are often surprised at how much they have when it's all packed up!
It is also an idea to get removal quotes as early as possible as they can become booked up quite quickly - especially if you are
moving during the school holidays.
At this stage it's worth getting in touch with the Post Office to arrange for your mail to be re-directed and establishing what
the processes are for the utility companies to transfer accounts.

Arranging buildings and contents insurance
You will need to make sure that you have adequate buildings insurance from exchange of contracts and before you can
complete your purchase. Our Mortgage Consultant can assist you with this.
It is also important to look at insuring your contents and it is possible to cover some of your contents for accidental damage
during the move.

If you would like a quote for our comprehensive buildings and contents insurance which has been designed specifically
for teachers then ask our Mortgage Consultant to pass your details to our Home Insurance team or you can call them
direct on 0800 378722 or visit our website to request a quote.

Moving in!
Moving in day - you are likely to get the keys to your new home some time in the afternoon on your completion day after
your solicitors have received and passed on the funds from your lender.
This also gives you, and your vendors, time to move belongings and clean up, during the morning.
The day you move will be very hectic and once you're in you may not be able to find packed items easily, so it's wise to put a
few things aside when packing the night before.
Here is a list of items that you may need to hand on the day.

• Money and identification                                          • A basic medical kit
• Telephone numbers of your estate agents and solicitors            • Toilet paper
• Directions if you are moving far                                  • Light bulbs
• A kettle, teabags and mugs etc.                                   • Mobile phones and chargers
• A bottle of water                                                 • Household cleaning products.
• Snacks to keep you going                                          • Glasses and the bottle of bubbly!
• Pet food, if you have pets

   Call our mortgage consultant now on 0800 373352 to arrange your
   appointment or visit our website - mortgages

Key Dates

1.   Check how much you can borrow, by speaking to our Mortgage             Date

2.   Our Mortgage Consultant will then get you a Decision in Principle      Date
     from the lender.

3.   Register with some estate agents and start looking for your new        Date

4.   Make an offer on the property that you have chosen.                    Date

5.   Once your offer is accepted, you will need to choose and instruct      Date
     your solicitor and give their details to the vendor's estate agents.

6.   Speak to Our Mortgage Consultant in order to process your full         Date
     application to the lender.

7.   Our Mortgage Consultant can also now discuss the different types       Date
     of valuation / survey and arrange your preferred survey with the

8.   Our Mortgage Consultant will also now be able to advise you on         Date
     your insurances, particularly buildings insurance which you will
     need prior to completion of the house purchase.

9.   Once your valuation has been returned and the lender has finished      Date
     any underwriting, you will receive your Mortgage Offer.

10. Your solicitor should be near completing the necessary searches,        Date
    once this is done your solicitor will exchange contracts.

11. Now you have exchanged contracts you will be able to arrange a          Date
    completion date with your solicitor and the vendors.

12. When you know of your completion date you can start getting             Date
    quotes from removal firms or for van hire.

13. Now is also a good time to make any other arrangements, such as         Date
    obtaining boxes etc for packing and someone to look after pets or
    children on moving day if necessary

14. Completion day! You should be able to collect the keys at some          Date
    stage in the afternoon and will be able to move in to your new

     Call our mortgage consultant now on 0800 373352 to arrange your
     appointment or visit our website - mortgages

Who to inform when moving
Keeping a list of who you need to tell about your new address and contact details is a good idea as it means you won't
forgot anybody! We've prepared the following as a start:-

    Name                                        Contact details                           Notes
    Bank or Building society
    Telephone provider
    Satellite or Cable TV provider
    TV Licence
    Local Council (council tax)
    Credit card companies
    Loan companies
    Food/catalogue delivery companies
    Gas company
    Electricity company
    Water company
    Inland revenue
    Insurance providers home
    Insurance providers car
    Insurance providers other
    Mobile phone company
    Pension provider
    Royal mail
    Clubs, societies and gyms

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

   Call our mortgage consultant now on 0800 373352 to arrange your
   appointment or visit our website - mortgages

To re-mortgage means to switch your mortgage from one lender to another.
People typically do this to obtain a lower interest rate and thereby lower the amount that they are paying each month. You
don't have to be moving home in order to change your mortgage.

How does it work?
Re-mortgaging can be well worth it, as it could save you hundreds of pounds per year.
You will firstly need to check with your current lender to see if you are tied in on your current mortgage and if so, how much
they will charge you (this is called an early redemption charge) if you close your mortgage account.
Then speak to our Mortgage Consultant, who will guide you through the process and advise you on the most suitable
mortgage for your needs. Our Mortgage Consultant will tell you how much you could save.
Don't worry if you are still tied in to your existing mortgage, our Mortgage Consultant will let you know whether or not if you
can save money by remortgaging. They will only advise you to do so if it is in your best interest. We would always
recommend that you contact your current lender as some lenders offer competitive rates for existing borrowers which we
may not be able to access.

How much does it cost?
Re-mortgaging need not be expensive. There are many lenders that will cover the initial costs for you by way of a free
valuation and free legal costs.
Our Mortgage Consultant will be able to search for the most suitable deal for you and will not charge you a fee for the advice
that you receive.

When should you remortgage?
There is no wrong time to see if you can save money. The most popular time to look for a remortgage is when a special
interest rate deal on your current mortgage ends.
At the end of any special rate, such as a fixed, discount or capped rate, your lender will automatically move you to their
Standard Variable rate, which can be higher than the one you were paying before.
So if you don't remortgage you could end up paying their higher rate, which could result in much higher mortgage
payments than you might pay elsewhere.

Can I borrow more?
It is possible to borrow more when remortgaging than you currently owe, subject to the lender's criteria.
This could free up money for things like home improvements, holidays or to pay off other existing debts, such as loans or
credit cards.
This could lower your overall monthly payments if you are clearing other debts, although doing so could cost you more in
the long term - our Mortgage Consultant will be able to discuss this with you.

Will I need a solicitor?
You will need a solicitor or conveyancer in order to remortgage, the costs for which are lower than when buying a property.
The majority of lenders would not expect you to arrange your own solicitor for a remortgage and many will offer free legal
costs if you are prepared to use their chosen solicitor.

   Call our mortgage consultant now on 0800 373352 to arrange your
   appointment or visit our website - mortgages

GLOSSARY OF TERMS THAT YOU MAY HEAR:                                     •   Higher Lending Charge (HLC). A fee charged by the
•   Annual percentage rate (APR). An interest rate quoted                    lender, if the mortgage amount is above a specified
    by lenders to help compare the true cost of different                    percentage of the property's value. Used to be known as
    mortgages. The APR takes into account all fees and                       a Mortgage Indemnity Guarantee (MIG), or High Loan To
    charges as well as the monthly payments over the whole                   Value Fee (HLTV).
    term of the loan.                                                    •   Loan to value (LTV). The amount of loan expressed as a
•   Base Rate. The interest rate from which lenders set their                percentage of the property value. For example a loan of
    rates for lending. It is usually based on the Bank Of England            £90,000 on a property valued at £100,000 would be a LTV
    Base Rate. Some lenders may also have their own base rate                of 90%.
    or SVR. See SVR Below.                                               •   LIBOR. London Inter Bank Offered Rate - The rate at
•   CHAPS. Clearing House Automated Payment System. The                      which banks lend to each other.
    system that enables money to be transferred from one                 •   Mortgagee. The mortgage lender.
    bank account to another on the same day.
                                                                         •   Mortgagor(s) Borrower(s). The individual(s) taking out
•   Completion. The date normally agreed at exchange of                      the mortgage.
    contracts (for purchases), upon which the funds are
                                                                         •   Offer Letter. A formal offer of a mortgage provided by
    transferred to complete the purchase of the property. In
                                                                             the lender, stating the terms of the loan.
    the case of a remortgage the completion date is the date
    that the mortgage is transferred from one lender to                  •   Portable. A mortgage that can be transferred to another
    another.                                                                 property if you move home.

•   Conveyancing. This is the legal work involved in the                 •   Redemption. The process of paying off your mortgage in
    purchase and sale of land or property and the transfer of                full. This occurs at the end of the mortgage term, when
    a mortgage, usually carried out by a solicitor or licensed               changing lenders or when moving house and taking a
    conveyancer.                                                             new mortgage.

•   Disbursements. Legal and administrative costs payable                •   Retention. This is when a lender holds back (retains) part
    to the solicitor or conveyancer, related to the purchase or              of the mortgage until certain conditions have been met.
    remortgage of a property. Including stamp duty, search                   An example of this is when a lender retains funds until
    fees, HM land registry fees and CHAPS fees.                              particular improvements have been made to the
    Disbursements do not include the solicitor's own fee for                 property.
    their legal work.                                                    •   Stamp Duty. A tax paid by the buyer when purchasing a
•   Early Redemption Charge (ERC). A fee imposed by the                      property. The amount payable works on a sliding scale
    lender if all or part of the mortgage is paid off before the             dependent on the purchase price of the property.
    expiry of a special rate, i.e. fixed or discounted.                  •   Standard Variable Rate (SVR). The default interest rate
•   Equity. The difference between the market value of a                     charged by lenders, normally applied at the end of a
    property and the owner's mortgage on that property.                      special rate period such as the end of a fixed rate.

•   Exchange of contracts. The stage in the house buying                 •   Vendor. The person or persons that are selling a
    process when the deposit is paid and the sale of the                     property.
    property becomes legally binding. This is usually when
    the completion date is then set.

    Call our mortgage consultant now on 0800 373352 to arrange your
    appointment or visit our website - mortgages

Contact Us
Your Teachers Assurance Mortgage Consultant will speak with you at a time to suit you, to discuss your needs.


   • You will have your own, dedicated Mortgage Consultant

   • We'll help you work out how much you can borrow and for how long

   • We'll explain the risks

   • We'll recommend the most suitable deal for you

   • We'll advise you on the suitable plan(s) to protect your mortgage

   • And we'll help you apply for a mortgage when you're ready.

At Teachers Assurance, we've been providing financial advice to the education
profession for over 130 years.

As a mutual organisation, with no shareholders to pay, we dedicate our time and
resource to providing the services and products that our customers require.

Our mortgage consultant provides information and advice on mortgages,
from our selected panel of lenders.

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

   Call our mortgage consultant now on 0800 373352 to arrange your
   appointment or visit our website - mortgages

Teachers Management Services Limited (TMS) No 3401641 is an Appointed Representative of Mortgage Support Network Limited which is authorised and
regulated by the FSA, TMS, trading as Teachers Assurance is a wholly owned subsidiary of Teachers Provident Society Limited, an incorporated Friendly
Society No 372F. Registered in England and Wales.

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