Steps to Take When Buying A Home | Process of Purchasing A House

Choosing to buy a house is not a decision you arrive at overnight. It takes a long time to decide to take a house mortgage and the process is also not achieved within a day.

This article looks into the things you must know before taking a house mortgage in 2021 or 2022. 

  1. What you need to consider 

Even before getting into the market predictions the first step you have to know is all the information and factors to consider before deciding to take a mortgage.

  • Te extra services you will need

Property inspection services, research mortgages, finance consultants, legal services, etc, are the sort of extra services you need when buying a home.

Ensure you have enough legal support throughout the mortgage process. Lawyer services are there to help you certain that all transactions are done legally and to prevent cases of faulty conveyancing.

  • The time it takes to get a mortgage 

Securing a mortgage on a house will take anywhere between a month to a year depending on the property, the amount and the mortgage provider.

As you already know time influences price and it is better to find a mortgage provider with shorter time provisions or begin your search for a mortgage as early as possible.

  • Where to get your mortgage 

It is also possible to take a personal loan to finance a house. 

However,  explore all your options including reading reviews about personal credit companies before deciding to use personal loans to finance a home. 

This is because unlike, house mortgages personal may prevent you from seeking other types of loans before their repayment.

  • The amount of mortgage you need

Mortgage companies are strict when it comes to the amount of mortgage their lend out. they consider things like your credit score, your job, financial stability, and the property.

  1. Current House pricing v 2022 house pricing predictions 

A first look is at the current house pricing because it directly influences the amount of mortgage a person should take.

In the UK the rate stands at 10.6% of year-to-year growth in house prices. that means that if you buy a house in 2021, next year at a time like that the same house will be going for 10.6% higher than that price.

How about this is just for the general house pricing predictions over the last few years but the full determination of house prices will depend on other factors.

  1. Impact of the 2020 stamp duty holiday on house prices in the UK

Amidst the Covid 19 pandemic, the UK government decided to lift the stamp duty prices on houses in the UK. The holiday stamp duty policy was from July of 2022 to 30th June 2021.

This of course had a very huge impact on the housing market because the demand for houses rose. 

From the understanding of supply and demand, one may hurriedly conclude that the prices of homes increased which is partly true, but then again the economy was down because of the pandemic and not so many people were enticed to buy homes.

However in August right before the end period of the Stamp Duty holiday, market statistics show that house prices hit a record high.

Currently, the stamp duty rates are for property up £125,000 is at 0%, between £125,001 and £250,000 stamp duty at 2%, between £250,001 and £925,000 at 5%, between £925,001 and £1.5 million at 10%, and above £1.5 million at 12%.

The prediction is that for 2022 house prices are going to decline because the demand will be low.

The property prices have declined because of the return of stamp duty rates but this is not to say that we do not expect an increase in house prices. it is just a slight reduction from the end of the stamp duty holiday. 

  1. The right time to get a house mortgage 

Taking into consideration the current market price for houses in the UK the 2022 prediction and the time it takes to secure a house mortgage it is my recommendation that the best time to get a house mortgage is between now and mid-2022.

The UK housing industry is very competitive in the world used to your advantage the short price decline after the stamp duty holiday to begin your process of securing a house mortgage. 

The prices will likely increase in a year. 

By ev3v4hn