your guide to moving home

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					your guide to         hello
      g home
                      You’ve got your own home but now your circumstances have changed. Maybe you



movin
                      want to move to a bigger place, a new location, or to downsize. But you’re
                      probably thinking to yourself – how do I go about it? Can I be bothered with all
                      the hassle? How much money do I need to move? Which mortgage do
                      I choose? What are all the fees?
                      When you took out your first mortgage, there were lots of different factors to
                      consider. Deciding whether to move home requires just as much careful thought
                      and planning too.
                      Which is why we have put together this handy step-by-step guide to help you
                      consider all the different factors involved in moving home.



“helpful advice for
moving home”




                                                       for more information or to apply by phone

                                                       0800 234 6762
                                                       www.co-operativebank.co.uk/mortgages
                                                       we are here 8am to 8pm Mon to Fri and 9am to 2pm Sat. ref: 64350
contents
step 1 -   do your sums                      3
step 2 -   brighten your home for viewers    4
step 3 -   advertise your home               5
step 4 -   finding a new home                6
step 5 -   making an offer                   9
step 6 -   appoint a solicitor              10
step 7 -   which mortgage?                  11
step 8 -   get a mortgage in principle      12
step 9 -   get a valuation                  13
step 10 - mortgage offer                    14
step 11 - exchanging and completion         15
step 12 - it’s time to move in              16
glossary                                    17




                                                 2
step 1 -


do your sums!
The first step is to dig out the terms and conditions of your current mortgage.
What type of deal do you currently have? Can you transfer your existing mortgage
deal to your new home i.e. is it ‘portable’? If you are looking to move to a bigger
property – can you afford to increase your monthly mortgage repayments? Are
there any penalties for changing or moving your mortgage?
A bigger property will also mean bigger energy, water and council tax bills.
Will you be able to afford these?
You may find it useful to do some budgeting sums to give you a better idea of
the feasibility of moving and if you can actually afford to move.
Once you’ve done your initial budgeting and have your heart set on moving
home – what do you do next?




                                                                                      2+2=4
                                                                                              3
step 2 -
                                                                                           top ten tips
brighten your                                                                              1. It’s time to finish                                    6. The kitchen
home for viewers                                                                              off those jobs…
                                                                                           Have you been threatening to mend that cupboard
                                                                                           or fix that towel rail? Well it’s time to get to work.
                                                                                           You don’t want prospective buyers becoming
                                                                                                                                                     Pay particular attention to the kitchen and
                                                                                                                                                     bathroom. Make sure all the surfaces are cleared
                                                                                                                                                     of any clutter. Make sure all your appliances are
                                                                                                                                                     clean - your prospective buyers will be trying to
                                                                                                                                                     imagine what it would be like to cook in your
                                                                                           distracted by these small problems.                       kitchen. Some kitchen units can benefit from a
The next step is to generate interest in your current home by preparing it for the sale.                                                             quick paint job and new handles to make them
                                                                                                                                                     look like brand new.
Obviously you’ll want to sell your home for the best price as quickly as possible.         2. Could your home do
To do this, you need to prepare your home for the sale. Try to imagine what a                 with a lick of paint?                                  7. Bathroom
prospective buyer would think of your home, your garden, your garage? Remember             When was your home last decorated? Are there
                                                                                           any marks on the walls? Many homes could benefit          Make sure you go to work on the bathroom.
the first glimpse that any prospective buyer will have is usually from the roadside                                                                  Keep it aired and clean and make sure any mould
                                                                                           from a lick of paint here and there to make the
in front of your property.                                                                 rooms look brighter and generally more attractive.        is removed. Maybe it could benefit from a lick of
                                                                                           You’ll find that plain colours will help to give the      paint or a bit of fresh grouting?
Why not take a bit of time to do some jobs on and around your property? Add a              illusion of a larger room.
lick of paint here and there, fix the guttering, and prune those hedges… little details                                                              8. View from the street
like these will help make your home look more tidy and desirable.                          3. Clean from top to bottom                               Remember, the first time a potential buyer will view
                                                                                                                                                     your property is usually from the roadside. There’s no
At some point you’ll be asked to provide details about your property. This will            A clean, uncluttered home will be attractive to
                                                                                           potential buyers. Make sure you clean throughout          point in doing all the work on the inside of your home
include the findings of standard searches, evidence of your title and any warranties/                                                                if the outside turns off buyers. So fix that fence, paint
                                                                                           the property from top to bottom.
guarantees. You should start compiling this now to save time and money later on.                                                                     that front door, and clean those windows…

                                                                                           4. Keep it neat and tidy                                  9. Get green fingers
                                                                                           For some households it’ll be time to get rid of all
                                                                                           the junk you’ve built up over the years. Try and          Is your garden overgrown? Or full of weeds?
                                                                                           keep all rooms as clean as possible, that way             Then get out there! A cared for, colourful garden
                                                                                           viewers will be able to see the potential of the          can make your property a much more attractive
                                                                                           rooms more clearly.                                       proposition. Get the lawnmower out and plant some
                                                                                                                                                     flowers to give your garden a quick makeover.

                                                                                           5. Lighting                                               10. Keep your pets away
                                                                                           Don’t leave your viewers in the dark. Change that
                                                                                           faulty light bulb and make sure all dark areas are        You love your pets, but that doesn’t mean
                                                                                           well lit. That way your property will seem much           everyone else will. When you start showing people
                                                                                           larger. Think about the way your furniture is laid out,   your home, arrange to keep the pets out of the
                                                                                           sometimes you can create the illusion of a much           way, maybe at the home of a friend or relative.
                                                                                           larger room by simply moving your furniture around.       That way buyers won’t be distracted by them,
                                                                                                                                                     and your pets won’t bring smells, hairs and dirty
                                                                                                                                                     paw prints into your freshly spring cleaned home.




                                                                                                                                                                                                                 4
step 3 -
                                                                                        finding and dealing
advertise your home                                                                     with estate agents
Once you’ve prepared your home for sale, the next step is to
arrange for it to be advertised for sale. You have a few options                        How do you find an agent?
                                                                                        Drive around the area in which you are hoping to buy, and get your name on estate
here and you’ll have to decide which option is the best for you.                        agents’ mailing lists for new properties coming onto the market. Once you have an
                                                                                        idea of the kind of property you’d like, you will need to contact and visit a number of
• You could use an estate agent to          • An estate agent will also help you to     estate agents. Bear in mind that the agent is working for the seller and not you.
  promote your home. Usually they’ll          establish how much your home is           However, estate agents are legally bound to comply with the Trades Description Act,
  help you by promoting your home on          worth. If you don’t agree with their      which means that all property details must be clear, accurate, and not misleading.
  their Internet site and in their local      valuation price, speak to more than       Some useful contact numbers:
  branch. They’ll arrange to show             one estate agent and see if they all      The Ombudsman for Estate Agents Scheme: 01722 333306
  would-be buyers around your home            value it at a similar price. However,
  and be the central contact point for        you should remember a property            The National Association of Estate Agents (NAEA): 01926 496800
  all negotiations over the property.         that’s valued too high could put buyers   The OFT offer a free booklet called ‘Using an Estate Agent’, which is available
  Before you arrange to go ahead with         off and affect your chances of a          upon request from the OFT website www.oft.gov.uk or by calling 0870 6060321.
  an Estate Agent, make sure you              quick sale. On the other hand, a          The guidance covers England, Wales and Northern Ireland.
  know what it’ll cost you from the           property that’s valued too low could
  outset. Although some Estate Agents         potentially lose you some of the          You can also search online for estate agents at The National Association of Estate
  will be cheaper than others, it's worth     equity you’ve built up in your home.      Agents www.naea.org.uk or The Office of the Ombudsman Estate Agents at either
  establishing what they’ll charge                                                      www.oea.co.uk or www.rightmove.co.uk
  before you give the go ahead. Estate                                                  The Co-operative Bank are not responsible for the content and opinions of the
  Agents usually ask for a percentage                                                   external websites listed here.
  of the sale price – usually around
  1.5% for all their services, although                                                 • You could also choose to sell your property on your own by arranging to
  this fee is often negotiable.                                                           advertise your home yourself. Indeed many Internet sites have been set-up for
                                                                                          this purpose. But beware; one of the first places that most buyers will go for
                                                                                          information is a local estate agent, so you may find you struggle to reach enough
                                                                                          potential buyers for your property.
                                                                                        There are other options available, so make sure you know which is most suitable for you.
                                                                                        Once you start getting interest in your home your estate agent will arrange
                                                                                        appointments with you for potential buyers to view your home. Make sure it’s kept
                                                                                        tidy, that way your home will be more appealing.



                                                                                                                                                                                   5
step 4 -


finding a new home
As you begin to generate interest in           Here are some of the                     Bills                                                Crime
your home, and once you have a more
detailed picture of the price you can          immediate things to consider,                    What is the cost of Council Tax?                 What is the crime level like
                                                                                                                                                 in the area?
afford, you’ll be in a better position to      but you'll probably have lots                    What are the average costs for
start looking for your new home                                                                                                                  (You can find out at
                                               more of your own:                                bills? (Copies of the bills may
                                                                                                                                                 www.upmystreet.com)
This can be great fun. It can also be                                                           be available)
                                                  Location Urban, suburban
very frustrating!                                                                                                                                Has the property ever been
                                                  or rural?                                     Gas: £
                                                                                                                                                 burgled or vandalised?
As our homes are one of the largest
                                                  Size How big does the                         Water: £
financial commitments we ever make, it's                                                                                                         Neighbours
                                                  property/garden need to be?
important to get it right and not settle for                                                    Electricity: £
                                                                                                                                                 What are the neighbours like?
a property just because you can't find            Local Amenities How close are
anything else. Whatever your priorities,                                                                                                         Are they noisy?
                                                  the public transport networks/local   Location
try and get them clear in your mind               schools/shopping centres/bars?                                                                 Has there ever been a dispute
before you start looking for a property.                                                        What are the local amenities like?
                                                                                                                                                 with the neighbours (or anyone
                                                  Commuting How far away is your                Shops, hospitals, leisure facilities, etc.
                                                                                                                                                 living nearby)?
                                                  job? And how convenient is local
                                                                                                How good, or near, is the
                                                  transport?                                                                                     Noise
                                                                                                public transport?
                                                  Neighbourhood Are you looking                                                                  Are there any schools or
                                                                                                Are the local schools good?
                                                  for a bustling neighbourhood                                                                   businesses nearby that would
                                                  or a peaceful one?                            Are there any known plans for                    cause noise at different times
                                                                                                development in the area?                         of the day (even in the early
                                                  Surrounding Area
                                                                                                                                                 hours of the morning)?
                                                  Are there, or could there be,                 Is the surrounding area run down?
                                                  developments nearby?                                                                           Is the property on a route
                                                                                                What condition are the
                                                                                                                                                 to/from a pub or club?
                                                  Council Tax Band Check which                  neighbouring properties in?
                                                  band your property will be in.




                                                                                                                                                                                  6
inside the property
                      Heating                                    Living room / dining room

                           Does the property have full central        Is there a fireplace/open chimney?
                           heating? If so, how old is it?             Is it in use or sealed?

                           How is the water heated?                   Can you re-open it if you
                           Combination boiler or tank?                wanted to?

                           Have there been any problems               Are any carpets or curtains / blinds
                           with the boiler? When was it last          included in the sale?
                           serviced by a Corgi engineer?
                                                                      Is there a telephone point?
                           Has the loft been insulated?
                                                                      Is there a connection for a TV
                           If so, how long ago?
                                                                      aerial socket?
                           Does the property have cavity
                                                                      Are you able to have hard flooring
                           wall insulation?
                                                                      if you want? (Be mindful of your
                                                                      new neighbours if you’re looking
                      Finding a property                              at a flat)
                           Are there any signs of water
                           damage to the floor?                  Bedroom(s)

                           Is there any obvious mould?                Are any of the wardrobes included
                           If so, where?                              in the sale?

                           Is there an extractor fan?                 Are there any other fixtures or
                                                                      other fittings included in the sale?
                           How old is the bathroom?
                                                                      e.g. curtains, light shades?
                           Is the floor tiled or carpeted?

                           Does the plumbing run
                           underneath the floor?




                                                                                                             7
outside the property                                                                      the value of a
Parking
        Is there off-road parking?
                                                 Garden

                                                     What garden features are included
                                                                                          second viewing
        If not, are you able to park outside         in the sale? (Shed for example)
        the property?                                                                     Once you’ve decided this is the property       If you’re looking to move to a bigger
                                                     Does the garden get sun? (The
                                                                                          for you, it’s always worth visiting the        property, you’ll have to think about the
        Do you need a permit to park?                best is a south-facing garden)
                                                                                          property for a second time, this time          costs of Stamp duty. The current rates
        Is there a shared driveway?                  Are there any trees nearby that      paying more attention to the specific          for stamp duty begin on properties
        Is there access to or from it?               could harm the property’s            details. You may find it handy to take a       worth over £125,000.
                                                     foundations?                         camera and tape measure with you, to
                                                                                                                                         For all property prices over £125,000
Security                                                                                  take pictures for reference, check key
                                                     Which boundary perimeter                                                            you’ll have to pay the following
                                                                                          measurements and finalise where
        Is there a burglar alarm fitted?                                                                                                 amounts in stamp duty to the Inland
                                                     is your responsibility?              furniture would go and that it will all fit.
                                                                                                                                         Revenue;
        Does the property have good
                                                     Is it a shared garden with           If possible, it’s a good idea to vary the
        door and window locks?                                                                                                           From £125,001 to £250,000 you’ll have
                                                     other occupiers? If so, have         time of your second viewing to give you
                                                                                                                                         to pay 1% of the value of your property
                                                     you access rights?                   a chance to see if there is any
Roof                                                                                      difference in noise levels from traffic,       From £250,001 to £500,000 you’ll have
                                                     Have there been any recent           neighbours or local businesses since           to pay 3% of the value of your property
        Are there any slates missing?
                                                     disputes with neighbours             you first viewed. An evening visit is
        What state is the chimney in?                                                                                                    From £500,001 plus you’ll have to pay
                                                     over boundaries?                     always worthwhile.
                                                                                                                                         4% of the value of your property
        Does the roof sag?                           If you’ve got fencing, is it
        (This is a sign of subsidence)
                                                     sound and solid or does
        When was it last tiled?                      it need replacing?

                                                     What is access like to the garden?
Guttering
                                                     Can you secure the access?
        Is there any guttering missing?
        Are the fixtures secure?
                                                 Windows
        Does the guttering have any mould
                                                     Is the property double-glazed?
        growing on it?
                                                     (This can be a substantial cost)

Walls                                                What state are the window frames
                                                     in? Are they rotten or mouldy?
        Are there any cracks in the walls?
        Can you see the damp above soil level?

                                                                                                                                                                                    8
step 5 -


making an offer
When you've found the property you really want, it's time to make an offer. Every       Can I insist that the estate                   What is gazundering?
seller has an asking price, but that doesn't mean that you can't put in an offer that
shaves a bit off the price. You may even wish to put in quite a low offer if you
                                                                                        agent or seller take the                       Gazundering happens when the
                                                                                                                                       buyer tries to pressure the seller into
believe it is a buyers' market and there's room for negotiation.                        property off the market?                       accepting a lower offer just before
Before you make an offer, you need to judge how much you can comfortably afford,        You can't actually stop the property           contracts are about to be exchanged
so you may wish want to consider the following:                                         agent or the vendor advertising the            by threatening to pull out unless the
                                                                                        property once your offer has been              seller accepts the lower price.
- How far can you let the seller tempt your offer upward?                               accepted. It's not general practice, but
- Is this the kind of property at this price selling fast or slow?                      some agents may take the property off          What kind of survey do I need?
                                                                                        the market out of goodwill. But                When it comes to having a survey
- Is it a fair price - is the seller being greedy or even realistic?
                                                                                        remember, the agent is working to get          done, you’re bound to feel a little
- Are you being realistic with your offer?                                              the best price for the seller, and is          resentful about spending the money –
                                                                                        employed by them, not you!                     after all, your survey fee may ultimately
To get a price you're happy with, you may need to exercise some negotiation skills.
However, negotiations can quickly become over-complicated, so set your minimum                                                         provide you with nothing more than a
                                                                                        What is gazumping?                             reason to go no further. However, this
and maximum and stick to them!
                                                                                        In some cases, a seller can decide             would be far preferable to moving into
What is the estate agent's role?                                                        to go back on an agreement with the            a property and discovering that you
                                                                                        buyer by accepting a higher offer from         have to spend thousands rectifying its
The estate agent should provide you with all the relevant information on making an
                                                                                        someone else. In home buying terms,            hidden defects later down the line. The
offer including:
                                                                                        you have been ‘gazumped’.                      more you know about any defects, the
- Complete legal description of the property                                                                                           more commanding your position will be
                                                                                        This is perfectly legal in England,
- Down payment and financing details                                                    Wales, and Northern Ireland, even after        when making an offer.
                                                                                        your offer has been accepted. This is
- Proposed move-in date
                                                                                        because the estate agent has a duty to
- Price you are offering                                                                pass on any other offers they receive
                                                                                        onto the seller, until they are told not to.
- Length of time the offer is valid for
                                                                                        By contrast, an offer in Scotland is
                                                                                        considered legally binding from the
                                                                                        moment of acceptance. See the Buying
                                                                                        in Scotland section for the key
                                                                                        differences to the processes.



                                                                                                                                                                                   9
step 6 -


appoint a solicitor
The best place to start looking for a good solicitor specialising in conveyancing is   Phase two: exchange of contracts            Phase three: completion
to ask family and friends for recommendations – a name you feel you can trust from     • The Solicitor liaises with the seller’s   • The Solicitor sends balance
the outset. Get quotes from several solicitors and, make sure quotes are ‘like for       solicitor to agree completion date          purchase monies (cost of property)
like’ for easy comparison.                                                                                                           to seller’s solicitor and receives
                                                                                       • The Solicitor exchanges contracts
                                                                                                                                     transfer and any relevant pre-
If friends and family can’t recommend someone, you can ask your mortgage lender,         and forwards contract and deposit to
                                                                                                                                     registration deeds
the Law Society or the Council for Licensed Conveyancers.                                seller’s solicitor
                                                                                                                                   • The Solicitor prepares and submits
The Law Society                                                                        • The Solicitor prepares transfer and
                                                                                                                                     Stamp Duty Land Tax Return
113 Chancery Lane, London, WC2A 1PL                                                      mortgage deed and arranges for you
Tel: 020 7242 1222 www.lawsoc.org.uk                                                     to sign them                              • The Solicitor submits application to
                                                                                                                                     the Land Registry to register your
                                                                                       • The Solicitor submits Land Registry
The Council for Licensed Conveyancers,                                                                                               title
                                                                                         search (to ensure nothing has
16 Glebe Road, Chelmsford, Essex, CM1 1QG
                                                                                         changed on the title) and Land            • The Solicitor receives completed
Tel: 01245 349599 www.conveyancer.org.uk/directory.asp
                                                                                         Charges search (to ensure neither you       application from Land Registry and
                                                                                         nor the seller is subject to Bankruptcy     sends title confirmation to lender and
Essentially, your solicitor’s job is to do the following:
                                                                                         proceedings)                                any pre-registration deeds to you.
Phase one: pre-contract
                                                                                       • The Solicitor prepares final accounts     Make sure you keep in touch with
• Agrees with you the basis of the work to be carried out and the costs – this is
                                                                                         and requests any monies required          your solicitor throughout the process
  called a Rule 15 letter
                                                                                         from you.                                 and get him or her to check contracts
• Satisfies all requirements under Money Laundering Regulations                                                                    and mortgage offer documentation
• May ask you for money on your account in order to carry out searches                                                             and explain any legal jargon to you,
                                                                                                                                   so you are happy you understand
• Receives contract documents from seller’s solicitor and raises enquiries                                                         what’s happening. In short, keep
• Submits local authority, water authority search and (if applicable) coal mining                                                  the communication going.
  search and environmental report.




                                                                                                                                                                              10
step 7 -


which mortgage?
Now you know where you want to live and how much you could afford, you need               Tracker rate                 Capped rate                   Cap & collar
to look at the different types of mortgages that are available. The best place to start
                                                                                          mortgages                    With a capped                 mortgage
is probably with your current mortgage provider/lender to see what deals they can
                                                                                          A tracker mortgage gives     mortgage, you have all        With a cap and collar
offer you as an existing customer. However, be sure you look at the products
                                                                                          you a rate of interest       the benefits of a variable    mortgage both a top and
available elsewhere before you decide to apply for any mortgage. It’s always
                                                                                          either above or below        rate product at a rate        bottom limit is set for the
wise to shop around and do your research to find the best mortgage for you.
                                                                                          the Bank of England          that won’t go above the       interest rate. As you’re
Don't forget to consider the fees of moving your mortgage, it may be a good idea          Base Rate for a set          level you initially agree     protected against interest
to jot these down and do a basic cost analysis before deciding if you should move         period, or for the life      to. If interest rates fall,   rate rises above a certain
your mortgage or stay where you are.                                                      of the mortgage. Any         so will the rate you pay      point this is a relatively
                                                                                          changes to the base rate     on your mortgage.             safe option. The only
Fees to consider:
                                                                                          will be reflected in your    However, the rate you         slight drawback is that
Repayment administration fee of current mortgage provider            £______________                                   pay will be higher than
                                                                                          monthly repayments, so                                     you’ll lose some of the
Early repayment charges on current mortgage                          £______________      if it goes up so will your   an equivalent discounted      potential gains should
New mortgage application fee                                         £______________      repayments and if it         rate mortgage.                interest rates drop.
Valuation fee                                                        £______________      goes down then you’ll
                                                                                          benefit from the rate
                                                                                                                                                     Cashback
                                                          Total      £______________                                                                 Cashback mortgages
                                                                                          going down too.
                                                                                                                                                     provide a lump sum of
There are many different types of mortgages on the market. Now you are thinking
                                                                                                                                                     cash immediately upon
about moving home a different type of mortgage may be more appropriate to your
                                                                                                                                                     completion of the
new circumstances.
                                                                                                                                                     mortgage. This amount
Here is a summary of the main types that are available.                                                                                              is a calculation of a
                                                                                                                                                     percentage of the overall
main mortgage types – which one should I choose…                                                                                                     mortgage. It can also be
                                                                                                                                                     a set amount, usually in
Fixed rate                                   Discounted variable rate                                                                                the region of 1-4%.
With a fixed rate mortgage you pay an        Just like it says, you pay a discounted                                                                 Typically these
agreed rate of interest for a set period     rate below the Bank’s Standard Variable                                                                 mortgages tend to be
of time e.g. three years. Knowing the        Rate (SVR) for an agreed period of time.                                                                at the lender’s Standard
exact amount of money you will pay           This keeps your initial costs down but                                                                  Variable Rate.
each month makes it easier to budget         your repayments will still go up or down
and gives you the reassurance that your      in line with changes to interest rates
monthly payments will stay the same          and the SVR.
whatever happens to the interest rates.
                                                                                                                                                                                   10
step 8 -


get a mortgage
in principle
Now that you know what types of mortgage deals are available and have a clearer
idea as to which one/s are for you, the next step is to do some research of the
products that different lenders are currently offering.
Obviously the more you investigate, the more informed you will be but below are
some of the issues to consider whilst you are shopping around…
The first thing to consider is obviously the rate you would be charged with your
new mortgage product. If you find a product you are particularly interested in, get
a quote either online or by calling the provider. All providers will be able to issue
you with a ‘Key Facts Illustration’ document, which will highlight all the costs
associated with the product.
If you have any other queries about any element of any particular mortgage; make
sure you check it out. In the first instance speak to the provider concerned or
secondly for a whole market view you could speak to an independent broker –
please note many brokers don’t charge a fee but make sure you are clear before
you start using their services.
Once you’ve decided on the lender and rate you want, apply to them to get a
mortgage in principle. Once you’ve received this you’ll be in position to make an
offer to buy your new home.




                                                                                        11
step 9 -                                                                                  Basic Valuation Report
                                                                                          Carried out for the lender this survey will also help you to find out independently


get a valuation                                                                           whether the price is reasonable and whether you’re looking at a good investment.
                                                                                          Although it is often referred to as a survey it doesn’t go into nearly as much detail
                                                                                          as a Homebuyers’ or Full Survey would do.

                                                                                          Defect Report
Once you’ve found your dream home and you’ve had an offer accepted on your                This report will focus on a defect that you’re concerned about – a common concern
home, speak to your Mortgage Lender so you can proceed with a valuation.                  for would-be buyers is evidence of damp or unsafe electrics, for instance. The report
Remember, you can either opt for a cheaper basic survey or choose from a range of         should explain the cause of the defect and describe the steps required to put it right.
more expensive surveys. Buying a property is the biggest purchase that most of us         This is often required if the survey you’ve had identifies a potential problem.
will ever make, so for that extra piece of mind you may find the extra expense of a
more detailed structural survey will be well worth it in the long run.                    Ultimately, it is your decision which type of survey you choose, but a Homebuyers’
                                                                                          Report will give you full details of any issues that require further investigation. It is
What kind of survey do I go for?                                                          better to know all the potential issues before you commit to buying a property,
                                                                                          especially if you’re buying an older property.
There are four kinds of survey you can opt for:
• A Full Building Survey                                                                  Who’s qualified to do my survey?
• RICS Homebuyers’ Report                                                                 Look for the letters MRICS (Member of the Royal Institute of Chartered Surveyors)
                                                                                          or FRICS (Fellow of The Royal Institute of Chartered Surveyors) after a person’s
• A Basic Valuation Report (often just required by the mortgage lender)                   name to be sure you are getting a properly qualified surveyor. To find a surveyor go
• A Specific Defect Report                                                                to the Royal Institute of Charted Surveyors website, www.rics.org Your mortgage
                                                                                          provider should be able to recommend a surveyor and if they’re lending you the
Each one serves a different purpose and costs will vary accordingly.                      money, you can be sure that they’re not going to hide anything from you.

Full Building Survey                                                                      How much can I expect to pay?
A Full Building Survey (often called a Structural Survey) will give you a                 The price of your survey will depend on the size and value of the property,
comprehensive and detailed report on the current condition of the property. All the       its location and condition. As a rough guide, a Basic Valuation of a three bedroom
visible elements of the property are inspected and any necessary repairs are              semi-detached house valued at £150,000 would cost circa £325 + VAT.
identified and given a cost estimate.
                                                                                          The lender makes a valuation too
RICS Homebuyers’ Report                                                                   It’s normal practice for the lender to also arrange a valuation on the property. You
The RICS Homebuyers’ Report is a pre-printed form prepared by the Royal                   may instruct a valuer who was not on the lender’s panel, but if you do you will have
Institution of Chartered Surveyors. The level of detail of the inspection is slightly     to pay another valuation fee in the event that the lender subsequently instructs their
less in this report, but it is slightly cheaper. You might opt for this route if you’re   own valuer (which is likely to be the case).
looking at a newer property.
                                                                                          Whilst this is being done, you should contact your solicitor who will be able to
                                                                                          complete all the relevant legal work.




                                                                                                                                                                                      13
step 10 -


mortgage offer
Once you’ve had a successful valuation and you are happy with
the findings of the searches, you will receive your mortgage offer.




                                                                      14
step 11 -                                                                                 • Buildings insurance helps protect you and the lender against damage to the
                                                                                            property in the event of anything happening to it. Storm or flood damage and the
                                                                                            repairs involved could cost you thousands of pounds without the appropriate

exchanging                                                                                  insurance. It is also a requirement of most mortgages that you should have
                                                                                            adequate buildings insurance cover.
                                                                                          • Life assurance helps protect your dependants from having to meet the


and completion                                                                              responsibility of your mortgage if you die.
                                                                                          • Protection products give you some protection in the event that you become unable
                                                                                            to meet your mortgage repayments if you become ill and/or unable to work.
                                                                                          How long – from start to finish?
Exchanging                                                                                When researchers tracked the experience of homebuyers in 2000
Before you exchange contracts, check with your solicitor that:                            (www.money.guardian.co.uk, August 2001), it was found that the average time from
• you have a valid mortgage offer                                                         the start of the house hunt to the date of completion took 22 weeks.

• you are happy with the survey                                                           That works out at an average of 10 weeks from having an offer accepted to
                                                                                          collecting the keys. Official figures describing a typical timetable for a property sale
• there are no unresolved issues in the contract.                                         in England and Wales look like this:
When your offer has been accepted and all the conveyancing (the legal searches)
                                                                                          From first look at properties to offer accepted:          12 weeks
has been done, your solicitor will send you the contract. This is called Exchanging
                                                                                          From offer acceptance to mortgage offer:                  4 weeks
Contracts. At this point you also agree to a Completion Date – the date the property
becomes yours and pay your deposit through your solicitor. (Remember, if you pull         From mortgage offer to exchange of contracts: 4 weeks
out after exchanging contracts, you will lose your deposit.)                              From exchange of contracts to completion:                 2 weeks

You should also make sure that the building’s insurance and any other insurance           It’s worth noting that these are averages and there’s a strong chance that the
are in place for the exchange date (and not the later completion date). Ask your          process could take longer, or less time if you’re lucky. If you’ve experienced an
solicitor for advice on this. This can be arranged by your lender or independently.       adverse valuation or if your solicitor’s searches have revealed adverse issues or if
Cover must be in place and is not optional.                                               you’ve been gazumped once (or twice!) this may have an impact on how long the
                                                                                          process takes. Around 28% of accepted offers don’t even reach completion and
The day of completion
                                                                                          many sales can drag on for months, so don’t be too downhearted if you’re not
It’s customary for the buyer to get the keys to the new property around lunchtime
                                                                                          walking across that threshold on week 22!
on the day of completion so that the previous owners have enough time to move
out and clean before they leave. That same morning, your solicitor will transfer the      Remember: From the exchange of contracts it is your responsibly to insure the property.
rest of the money from your mortgage advisor to the vendor. Your solicitor will also      Make sure that you don’t overlap the final payment on your existing mortgage with the
pay your stamp duty (if applicable), if you haven’t paid it already, or send you a bill   first payment of your new mortgage otherwise you’ll be making two payments in the
for the amount.                                                                           same month.
Do I need to consider any other financial products?
Any property is a major asset, and is legally yours only by way of having promised
to pay back a substantial loan over a number of years. You’ll need to consider
buying various other financial products to protect all the concerned parties.



                                                                                                                                                                                     15
step 12 -                                                                                   who to contact when you move
                                                                                            Solicitor                                                                 Car
                                                                                            Estate Agent (buying)                                                     Property

it's time to move in                                                                        Estate Agent (selling)
                                                                                            Bank
                                                                                            Building Society
                                                                                                                                                                      HP Companies
                                                                                                                                                                      Family & Friends
                                                                                                                                                                      Employer
                                                                                            Other Financial Companies i.e.                                            Inland Revenue
                                                                                            ISA Provider                                                              Council Tax Office
Things to remember
                                                                                            PEP Provider                                                              Gas
• Label your boxes or bin liners with what’s inside and which room you want to put
                                                                                            Pension                                                                   Electricity
  them in
                                                                                            Unit Trusts                                                               Water
• The night before you move, pack a survival kit – tea / coffee, crisps, biscuits, toilet   Credit Card Companies                                                     Telephone Provider (BT 0800 800 123)
  roll, soap, towel etc. – to help you through the first day in your new home               Store Loyalty Cards                                                       Internet Service Provider
• Shortly before you move, fill up your car’s fuel tank – it’s one less thing to worry      Insurance Companies                                                       Mobile Phone Company
  about on the day of the move                                                              Royal Mail (Re-direct mail) 08457 740 740                                 Optician
                                                                                            Cable / Satellite Company                                                 School
• If you’re not going to use e-mail to inform family, friends and associates of your        TV Licence 08705 246 246                                                  Driving Licence Centre 0870 240 0009
  change of address, get some postcards and stamps                                          TV and Video Rental                                                       Magazine Subscriptions
• Try to avoid booking yourself up with weekends away just before or after the              Doctor                                                                    Sports and Social Clubs
  move. Packing and unpacking always takes longer than you think!                           Dentist                                                                   Trade Unions / Professional Bodies

• Maintain a file of all correspondence relevant to your property purchase
                                                                                            further information sources
• If you’re leaving a property, you’ll need to remember to arrange final readings for       professional and trade organisations
  gas, electricity, telephone and council tax. See our useful contacts list
• Pack valuable items and important paperwork separately and take them with you             organisation                                                     telephone                    website
  in the car and then keep them somewhere safe.                                             Association of British Insurers                                  020 7600 3333                www.abi.org.uk
                                                                                            Citizens Advice Bureau                                                                        www.citizensadvice.org.uk
                                                                                            Northern Ireland                                                                              www.citizensadvice.co.uk
                                                                                            Scotland                                                                                      www.cas.org.uk
                                                                                            Council for Mortgage Lenders                                     020 7437 0075                www.cml.org.uk
                                                                                            Law Society of England and Wales                                 020 7242 1222                www.lawsociety.org.uk
                                                                                            Law Society of Northern Ireland                                  028 90 231 614               www.lawsoc-ni.org
                                                                                            Law Society of Scotland                                          0131 226 7411                www.lawscot.org.uk
                                                                                            National Association of Estate Agents                            01926 496800                 www.naea.org.uk
 for more information or to apply by phone                                                  National Guild of Removers and Storers                           01494 792279                 www.ngrs.co.uk
                                                                                            Office of the Ombudsman of Estate Agents                         01722 333306                 www.oea.co.uk

 0800 234 6762
 www.co-operativebank.co.uk/mortgages
                                                                                            Royal Institute of Charted Surveyors                             0870 333 1600                www.rics.org

                                                                                            The Co-operative Bank p.l.c. is not responsible for the content and opinions of external websites given here.


  we are here 8am to 8pm Mon to Fri and 9am to 2pm Sat. ref: 64350

                                                                                                                                                                                                                      16
glossary                                                                                 Chain
                                                                                         Whilst selling your home, you’ll be buying a property from a vendor who’s buying
Listed below are a few terms that you may come across on your home-buying                from someone else - and everyone has to wait for everyone else’s deals to go
journey.                                                                                 through. First time buyers are chain-free, as they don’t have to sell anything.
Annual Percentage Rate (APR)                                                             Completion
A standard way of expressing interest rates which allows you to compare the cost         The term used when the seller and buyer finally exchange money via their respective
of different mortgages - including those from different lenders - on a 'like-for-like'   solicitors. The buyer becomes the legal owner of the property, and can move in.
basis. It takes into account costs such as fees for valuations, legal services and
                                                                                         Conveyancing
administration. The APR calculation is set by legislation and assumes the mortgage
will run its full term.                                                                  The process performed by a solicitor, or qualified conveyancer who deals with the
                                                                                         details of home ownership transfer.
Arrears
                                                                                         Daily Interest
The amount a borrower is behind in their mortgage payments.
                                                                                         The interest on your mortgage is calculated on a daily basis, which means that as
Base Rate Tracker
                                                                                         soon as you make a capital payment your interest is reduced.
A rate of interest set above or below the Bank of England base rate is paid for a
                                                                                         Early Repayment Charges
period of time.
                                                                                         If you want to sell your home or change to another lender, you’ll end up paying
Buildings Insurance
                                                                                         back your loan early. Many mortgage lenders charge a penalty fee, particularly
Protects the property against the financial effects of hazards such as fire, flood and   during any period of fixed, capped or discounted rate. Check it out in advance,
subsidence. It is a condition of taking a mortgage with The Co-operative Bank that       so you know what you’re letting yourself in for.
you have adequate buildings insurance. Contact our sister company Co-operative
                                                                                         Equity
Insurance, where you can have all your insurance needs covered.
                                                                                         The difference between the value of a property and the value of a mortgage.
Capped Rate Mortgage
                                                                                         Negative equity is when the mortgage value is greater than the property value.
As with all variable rate mortgages the rate follows the lender’s Standard variable
                                                                                         Exchanging Contracts
rate (SVR) up and down. The difference with this type of mortgage is that the rate is
guaranteed not to go above the level at which it is ‘capped’.                            The contract is the written agreement that sets out the terms between the buyer
                                                                                         and the seller. When both parties exchange contracts – usually several weeks
Cashback Mortgages
                                                                                         before completion – the deal becomes legally binding.
As an incentive, some lenders offer a lump sum with the mortgage. E.g. borrowing
                                                                                         Fixed Rate Mortgage
£70,000 with 6% cash back on completion, gives you £4,200. Early repayment
charges are usually attached to this type of product and you may be locked in for        The amount repaid to the lender each month is fixed, regardless of the interest
up to 7 years.                                                                           rates in the market place. It is common for lenders to offer rates fixed for a period
                                                                                         of time. At the end of the fixed term or benefit period, the rate will normally convert
CAM – Current Account Mortgage
                                                                                         to the SVR – Standard Variable Rate.
One loan account that brings all your finances, including your mortgage, loans and
credit cards in a single account.



                                                                                                                                                                                   17
Flexible                                                                                  Joint & Sole Income Multipliers
There are five main features to a Co-operative Bank mortgage:                             These are used to calculate how much you can borrow based on your annual
                                                                                          earnings. E.g. for a joint mortgage up to 3.5 x joint income (or 4.5 primary income
1. Interest is calculated daily
                                                                                          and 1 x secondary) and for a sole mortgage 4.5 x sole income
2. Building an overpayment fund
                                                                                          Loan to Value
3. Underpayment and withdrawals
                                                                                          The ratio of the mortgage amount to the value of the property. For example, if a
4. Payment holidays                                                                       loan of £100,000 on a property valued at £200,000, the LTV is 50%.
5. Further advances                                                                       Life Assurance – see Term Assurance
Guarantor Mortgages                                                                       Lump Sum Repayment
Any of The Co-operative Bank’s mortgages can be ‘guaranteed’ by a close family            The one-off payment of an amount of money into your overpayment pot, on top of
relative who promise to be answerable to the debt of the mortgage holder.                 a normal monthly payment.
Guarantors will be subject to same lending assessment as the mortgage holder.
                                                                                          Mortgage Calculator
Ground Rent
                                                                                          An online tool that can be used to offer you a quick quote and to demonstrate the
An annual fee paid for by the leasehold owner of a property to the freehold owner.        flexible features of our mortgages.
Holidays (from payments)                                                                  Overpayment Fund
Even if you haven’t built up an overpayment fund, you could still stop paying your        This is created when you increase your mortgage payments or pay a lump sum.
mortgage altogether for up to 6 months on condition that you have been making             You can withdraw from the fund or pay off your mortgage earlier.
payments for at least 6 months. Interest does accumulate so you will have to make
                                                                                          Payment Protection Insurance
higher payments in the future to cover the payment holiday, if you want your end of
term date to remain the same.                                                             Insurance that will give you cover for your monthly mortgage repayments should
                                                                                          you be unable to pay due to unemployment or sickness.
Homebuyers’ Report
                                                                                          Portability
A survey carried out by a professional surveyor from which you receive a report
stating the condition of a property and whether or not any repairs need to be             If you move home you will be able to transfer your existing mortgage product onto
carried out. This service is less thorough than a full ‘structural survey’ (which might   a new mortgage for your new property if you stay with us. All of the Bank’s
be more useful for older properties), but provides reasonable detailed information        mortgages are ‘portable’. Portability is always subject to Bank’s standard lending
at a slightly higher outlay than a basic valuation.                                       terms and conditions.
Interest Only Mortgage                                                                    Repayment Mortgage
You only pay the bank interest on the money you have borrowed. The capital itself         You make one monthly payment that covers both an amount towards repaying the
is paid through a separate repayment vehicle such as an endowment or ISA.                 money borrowed and the interest being charged.
Insurance                                                                                 See Interest Only Mortgage.
Insurance products include payment protection, life assurance and buildings and
contents insurance. Recommended to protect you and your property.



                                                                                                                                                                                18
Standard Variable Rate (SVR)
                                                                                                                                                                                   notes
A rate of interest set by us which we charge for the money we lend on all of our
mortgages, usually after an introductory period on a fixed, discounted, tracker or
capped basis. Repayments on the SVR go up and down as the SVR changes.
Stamp Duty
A government tax you have to pay on the conveyance of your property if it costs
more than £125,000. The amount due depends on the value of the property.
Current arrangements for stamp duty are subject to government policy and
may change in the future.
Term
The number of years over which you pay back your mortgage.
Term Assurance
A range of insurance products that can help repay a mortgage should
the person paying the mortgage die.
Decreasing Term Insurance
The amount of life cover reduces as the mortgage is repaid.
Level Term Assurance
Covers the full amount of the mortgage throughout the term.
Underpayment
One of the major benefits of our mortgages. Once you have built up
an overpayment fund, you can apply to reduce your monthly payments
(underpayment) or withdraw some of the money at any time.
Variable Rate (SVR)
Many major lenders offer a variable rate mortgage based on a
Standard Variable Rate (SVR).
Valuation
A valuation is carried out to check if a property is suitable for the
lender to provide a loan on.




                                                                                                                                                                                           ...is   that everything?
            YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE
Calls may be monitored or recorded for security and training purposes. The Co-operative Bank is authorised and regulated by the Financial Services Authority. Registered Office:                                      19
                     The Co-operative Bank p.l.c., P.O. Box 101, 1 Balloon Street, Manchester M60 4EP. Registered in England and Wales no: 990937.

				
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