Have you got your sights set on a beautiful property, yet you cannot afford the asking price? There’s nothing more frustrating. You find your dream home, but it’s just out of your reach. Well, don’t give up yet, as we will tell all about another option available to you – Help to Buy.
What is the Help to Buy scheme?
This is a government scheme that is designed to help hard-working people get on the property ladder or move up it. This is something that is becoming more and more difficult nowadays, yet with the Help to Buy scheme you have a way to acquire your dream property. Under this scheme, you can buy a property that is worth up to £600,000 with as little as a five per cent deposit. You will get 100 per cent ownership of the property yet you will only require a small despite as well as 20 per cent loan and 75 per cent mortgage. So, if your dream house is worth £450,000, you may be able to purchase it with a deposit of £22,500, a loan of £90,000 and a mortgage of £337,500. Please note that you are still going to need to cover the cost of property surveyors, legal fees, removal expenses, and everything else associated with the purchase.
Paying back the loan
You will receive an equity loan from the government, and you will need to pay this back on a monthly basis. For the first five years of property ownership, you won’t be charged any loan fees. However, in the sixth year, you are charged a fee, which is 1.75 per cent of the value of the loan, and this does not count to repaying the equity loan. This money won’t randomly start coming out of your bank account once you get to the sixth year, as you will be contacted by your Help to Buy agent beforehand so you can contact your bank to set up the monthly payments. Once the sixth year has passed, the loan fee charged will increase year on year, which is calculated based on the Retail Prices Index with an addition of one per cent.
You have 25 years to pay back the loan unless you sell your property. If you put your home on the market, you will have to repay the loan as soon as it sells. The amount you repay depends on the market value of your property at the time you repay the money you have borrowed. For example, if you purchased a home for £300,000 yet it was valued at £350,000 25 years later, you will need to pay back £70,000 despite the fact that you borrowed £60,000. You can make loan repayments at any time, yet you will need to make a minimum of 10 per cent of your home’s market value per payment.
To conclude, if you have found a property you wish to purchase yet you cannot afford the deposit amount, why not look into the Help to Buy scheme? You will only need to make a small deposit, and you will benefit from a government loan that is fee-free for the first five years. You can use this to help you with HDB resale prices or anything else you’re interested in.
Preparing for decorators once you’ve got your new home
Decorators can transform your home. No matter whether you are moving into a new property, looking to sell your current house or flat, or you are simply bored of your surroundings, they can assist. And, you can make their job easier and quicker, and save yourself money, by preparing effectively for their arrival.
You know what they say; time is money. Do you really want to pay more for decorating services because you have not moved the furniture before the decorators have arrived? You may as well just throw your money down the drain. So, first, begin by moving your furniture out of the way. Of course, this does not mean you have to move every item out of the house. The handyman you have hired will provide plastic sheets and cover up your furniture, but it is still vital to make sure it is not in the way. You don’t want them to be falling all over your furniture while trying to do their job. Depending on the nature of the job, you may also need skip bin hire. This is especially the case for new kitchen fittings and such like. You should also make sure you remove switch plates and outlet covers. It is easy to remove these as opposed to switching them if they get covered in paint. Aside from this, make sure the walls are clean. This may seem pointless, but dirt and dust can be visible after painting, as paint brings out physical differences in walls. This is why it is a good idea to clean them beforehand.
Choosing the right firm
No matter whether you need a painter and decorator to paint one room or an entire property, or you are looking for a different sort of home renovation service, it is important to choose with care. Below, we have some tops tips to help you get started.
A great place to start when looking for recommendations. Not only should you ask your friends and family if they can point you in the direction of someone reputable, but you should conduct research online. There are plenty of independent review websites nowadays, which will come in very handy when attempting to find out what past clients have had to say about the company in question. If you come across a lot of negative comments, you know that you should look elsewhere.
It is also a good idea to discover whether they are a member of any trade associations. While this is not a necessity, it is highly beneficial. It ensures that all members have been stringently vetted prior to admission; this means they keep abreast of the newest industry regulations and techniques, and that they only work with quality materials, and they have all of the skills and training required. Finally, make sure that the handyman you consider has public liability insurance. This is not something you can afford to overlook, otherwise, you could find yourself in a very sticky situation.
