You’ve got a mortgage in principle and have found the perfect property: right size, great location and within budget. So, what do you do now?
Now’s the time to make an offer, and here we detail the various stages involved so you know what to expect:
In Scotland, most properties are advertised with a fixed or an ‘offers over’ price. Fixed price means exactly what you’d think – this is the amount the seller is looking for you to offer before they’ll sell. The ‘offers over’ system is more complicated and requires you to use the price as a guideline, and then decide how much more than this you’re willing to pay.
Your offer will depend on factors such as:
How much of a mortgage you can afford
Property prices in the area and the buoyancy of the market
Whether there are any other potential buyers interested in the property
If you are asking for anything else to be included in the sale (such as fixtures and fittings)
Before you make an offer it’s worth checking that the price of the property you’re interested in is fair. You can do this by looking at how much other similar properties within the area have sold for recently.
Your chosen mortgage lender will need to carry out a valuation of the property to satisfy themselves that the property is mortgageable and worth what you’re offering. There may be a cost incurred for this, which you will have to cover, and it will vary depending on the value of the property.
As well as a valuation fee, there are other fees that you need to consider when sorting out your mortgage finances:
Mortgage set-up and arrangement fees
Glasgow Credit Union doesn’t charge any set up or arrangement fees, but some mortgage lenders do. Often you will be given the option of adding these fees onto your mortgage – but if you choose to do this remember that you’ll be charged interest on it for the duration of your mortgage.
The legal process that needs to be followed to transfer ownership of a property (submitting your offer, negotiating with the seller, checking contracts and organising the transfer of money) is called conveyancing and is carried out by a solicitor. Take the time to find out what services your solicitor will provide and always get a quote up-front. Online conveyancers can be cheaper, but it might be worth paying a bit more for a local one who you can call or visit in person and who will have experience of the local housing market.
Lands and Buildings Transaction Tax (LBTT)
This tax replaced Stamp Duty and was introduced on the 1st April 2015. It’s charged as a tiered rate on properties costing more than £145,000.
Once your offer has been accepted, your solicitor will arrange for new title deeds to be drawn up transferring the property from the seller to you. You’ll become the owner of the property on the settlement date – which will be agreed between you and the seller. Your solicitor will arrange with your mortgage provider for funds to be transferred to the seller on the settlement date.
All that’s left for you to do is collect the keys (either from the seller’s solicitor or directly from the seller) and move in!
For more information on Glasgow Credit Union mortgages, contact our mortgage team on 0141 274 9933
Not got time to talk right now?
Complete our online form and we’ll contact you to discuss your enquiry.
Please check first that you are eligible to apply:
You are aged 18 or over
You have a UK bank account in your own or joint names
You are a permanent UK resident
You have never been bankrupt or had a Court Decree
To complete your application you will need:
Your current employer's address details
Details of monthly income and outgoings
Bank or building society details (sort code and account number)
To enable us to make a decision on your loan application we will contact Credit Referencing & Fraud Prevention Agencies. This will register a search against your credit record and if your application is successful we will share the information we hold for you with these agencies. Further details are available in our Fair Processing Notice
It is important that you read the Fair Processing Notice document above. If there is anything that you do not understand, please contact us.
Please be aware that the longer you take to pay back a loan, the more you will pay back in interest. If you go for a shorter term your monthly repayment might go up, but you'll save in interest and pay back your loan faster.