When it comes to buying a new home, finance is key.
We hope to answer any questions you may have about the financial and legal aspects of buying your new Tulloch home here.
We will always be able to guide you through the process, and if you’re not sure about something, one of our sales consultants will be happy to help.
FINDING A SOLICITOR
To buy your perfect home, you’ll need a solicitor. Here’s our simple guide to what’s involved.
Solicitors make sure everything goes smoothly when it comes to the buying process. They also handle all the various searches you’ll require when purchasing a new home.
First, seek and request quotes from various solicitors and obtain written estimates of their fees, including VAT. It’s worth checking if these quotes include local authority searches, land registry fees and LBTT.
Select a solicitor to act on your behalf.
Provide your appointed solicitor with proof of your identity.
Your solicitor will advise on the terms and conditions of your missives (the legal agreement to buy) and the title deeds.
Following this advice, and once you have understood and are satisfied with the missives, you will then be able to sign your missives in conjunction with your solicitor with confidence.
Your solicitor will settle your outstanding mortgage, if appropriate, and complete the purchase of your new property. This legal transfer of property ownership is referred to as “conveyancing”. For a guide to this and other property jargon, see our Jargon Buster.
Your solicitor will liaise with your mortgage broker or bank to arrange the funds for settlement of the purchase of your new home on your scheduled day of entry.
Your NHBC documentation will be handed over to you on settlement via your solicitor.
A home information pack will be provided to you by your sales consultant.
ARRANGING A MORTGAGE
Where is the best place to go for a mortgage? If you’re not sure where to start, we can help.
Tulloch Homes has names of mortgage brokers who are able to source mortgages from a number of lenders. They’ll work with you to help find the right mortgage for your circumstances and lifestyle.
If you’d like to find out more, why not contact one of our knowledgeable sales consultants today?
ARRANGING A SURVEYOR
Both you and your lender will require confirmation of your property’s valuation. That’s where a survey comes in.
The valuation of your property needs to be confirmed by a surveyor who will carry out a survey on your chosen property. Fees are generally on a price-sensitive sliding scale and can be obtained prior to instruction. You need to consider the cost of a survey when working out your financial budget for your new home.
FIND ANSWERS TO SOME OF OUR MOST COMMONLY ASKED QUESTIONS
Below you’ll find some answers to commonly asked questions about finance and mortgages. If you need any more help, please do not hesitate to contact one of our sales consultants.
WHAT IS APR?
The APR is the true cost of borrowing and allows you to compare the cost of mortgage products from different lenders.
CAN I BORROW MORE THAN THE COST OF MY HOUSE?
All lenders have different lending criteria, and you will need to speak to them individually to discover how much they will lend you.
HOW CAN I KEEP TRACK OF INTEREST RATE CHANGES?
Interest rate changes can affect your repayments, but your lender will always issue you with a letter detailing any change.
WHAT HAPPENS IF I HAVE A POOR CREDIT RATING?
Every case will be judged by your lender on its individual merits. If you have been made bankrupt, certain restrictions may apply and your bankruptcy will need to be discharged.
DO I HAVE TO TAKE OUT MY INSURANCE THROUGH MY MORTGAGE LENDER?
All lenders require that you have building insurance in place. There is nothing to stop you seeking insurance elsewhere, but many lenders will charge a small administration fee if you do.
CAN I PAY MY MORTGAGE OFF EARLY?
Yes, you can, depending on your mortgage package, although if you are taking advantage of a special rate, there can sometimes be a penalty. Lenders usually also charge a deeds release fee when you complete or move your mortgage.
WHAT IS LBTT (LAND & BUILDINGS TRANSACTION TAX)?
Land & Buildings Tax (LBTT), which replaced UK Stamp Duty, is charged by the Scottish Government if you buy a residential property.
Tax is payable at different rates on each portion of the purchase price within specified tax bands.
The Cabinet Secretary for Finance, Kate Forbes MSP, announced on Thursday 9 July that the starting threshold for LBTT for residential property transactions will be raised from £145,000 to £250,000. The revised rates and bands apply to all relevant transactions where the effective date is between 15 July 2020 and 31 March 2021 (inclusive of these dates).
For transactions where the effective date is outside of the period of 15 July 2020 to 31 March 2021, the previous starting threshold of over £145,000 will continue to apply.
Since 30 June 2018, first-time buyers in Scotland have benefited from a relief on LBTT. Alongside measures to increase housing supply, this makes it easier for people in Scotland to buy their first home. The relief effectively raises the starting threshold for first-time buyers from £145,000 to £175,000.
If you are buying an additional residential property in Scotland (such as buy-to-let or second home) of £40,000 or more, the Additional Dwelling Supplement (ADS) of LBTT applies.
The ADS is charged at 4% of the total purchase price.
DO YOU HAVE ANY OTHER QUESTIONS? WE’RE HERE TO HELP
If there’s any aspect of financing your home you would like to know about, call 01463 229300 or alternatively fill out our simple contact form.
Help is at hand if you are looking to buy a Tulloch Home, but don't have a large deposit.
If you are eligible for the First Home Fund, you could receive assistance of up to £25,000 towards the purchase of a new Tulloch home.
The First Home Fund is a shared equity scheme run by the Scottish Government.