We recognise that buying a house can seem complicated and people may be unsure of the process. That’s why we’ve put together this handy list of frequently asked questions.
Simply browse our help topics below to find the answer to your question. If you cannot find what you are looking for, you can also ask us a question by sending an email to [email protected] or by using our enquiry form.
Easy Buying Process
What is a mortgage in principle?
People often make an application for a mortgage in principle to give them to assurance that they can obtain a mortgage at the level they require. A lender will say that, if all information is correct and the home valuation is approved, they will lend you the money to buy your new home.
A decision can usual be given in 24 hours once all of the requested information is provided to the lender.
Where can I get help with a mortgage application?
A mortgage broker is an independent third-party broker that will give you advice on suitable products for your borrowing needs. They will consider your requirements and look at your situation and provide guidance in terms of the best options available to you. They will then review the lending market and advise you on the best products available to you. The broker typically charges a set fee for this service.
Our sales team will be on-hand to help recommend independent brokers to you to make the process as simple as possible.
Do I need a solicitor?
It is recommended that you use a solicitor to deal with all the legal aspects of buying your new home. If you are obtaining a mortgage to buy your new home, then it will be a requirement of the lender that you use a suitably qualified solicitor that the lender approves.
The solicitor will be responsible for drawing up the contracts for the purchase, as well as making various searches and enquiries to ensure that you are fully informed on the purchase. They will also deal with transferring the money when it is time to exchange and complete the purchase of your new home.
Our support team will be on hand to help recommend independent solicitors if you require.
Will I have to pay Stamp Duty?
Stamp Duty Land Tax is payable on a home purchase where the value is more than £125,000 if you’re a current homeowner or more than £300,000 if you are a first time buyer.
The amount of Stamp Duty you will pay, will depend on the value of your new home and there are set price bands with percentages determining how much you pay. On the first £125,000 you pay 0%, between £125,001 and £250,000 you pay 2%, and between £250,001 and £925,000 you pay 5%. If you are buying a second home, there is a further 3% payable though if you sell the second home within 3 years of the new home purchase, the 3% is refunded.
When do I pay Stamp Duty?
Your solicitor will be in charge of dealing with stamp duty on your behalf. The payment needs to be made to HMRC within 30 days of your new home legally completing and becoming yours.
If you are using a mortgage to buy the home, the solicitor won’t be able to complete the purchase until the Stamp Duty funds are in place, as they require for legal completion with the lender.
Help to buy
Who is eligible for Help to Buy?
The Help to Buy Equity Loan scheme is available to both first time buyers and existing home owners. You will need a minimum 5% deposit to qualify. There is no maximum household income to qualify for the scheme, and you can purchase a property with a maximum value of £600,000 in England. The Help to Buy Equity Loan scheme is exclusive to new-build homes only.
How does Help to Buy Equity Loan work?
With Help to Buy Equity Loan, you only need a minimum deposit of 5% of the value of your new home. The government lends you an equity loan of up to 20% of the value of your home, so you’ll only need a 75% mortgage. You will not be charged any loan fees on the equity loan for the first five years of you owning your home.
Can I pay off the equity loan before the end of the first 5 years?
Yes. Once you have purchased your home, you can choose at any time to make voluntary part repayments or a full repayment, based on the market value at that time. The minimum voluntary repayment is 10% of the market value at that time.
Is Help to Buy a shared ownership scheme?
No. With the Help to Buy Equity Loan, you purchase 100% of your home and legally own 100% of your home.
How long will the Help to Buy scheme run for?
The popular Help to Buy Equity Loan scheme has been extended until 2021 through a further £8.6billion in government funding.
Is there a waiting list for each plot?
The exclusivity of our homes means they are often in high demand. Our Sales Team usually hold a list of clients who are interested in each development or particular plots so that all parties can be informed when they are released for sale.
You can register your interest on the relevant development page to be included in any updates via email or text message, or you can contact the Sales Team who will be happy to keep you informed using your preferred contact method.
How do I reserve a new home?
The Sales Team will go through the Plot Information Form with you prior to completing a Reservation Form. This is used to ensure you are fully aware of all the details relating to the home you are purchasing.
Once this is complete and you are happy to proceed, the Sales Executive will complete the Reservation Form with you and take a reservation fee from you to confirm your intent to purchase. The reservation fee is deducted from the balance of your new home upon legal completion.
Do I need to sell my existing home before I can reserve a new one?
If you are reliant on the sale of your existing home to finance your new home, you must have agreed a sale on your property before you can reserve a new home with us.
If you have a property to sell, we can introduce you to part-exchange specialists or support you with our Assisted Sale service to get you moving sooner, if you wish.
Can I choose the specification of my home?
We’re not just building a home, we’re building your home – and depending on the build stage, we give you the opportunity to personalise it to your own taste before you move in.
We offer a wide range of kitchen styles and tile colours, as well as optional upgrades, so we can create a home that is tailored to your needs, and ready to enjoy as soon as you move in.
Your Sales Executive will advise which options are available and will then arrange a convenient time for you to visit and make your selections.
Will my new home come with any warranty?
At Foxglove Homes we place the highest priority on service and satisfaction. The Sales Executive or Site Manager will make a courtesy visit 24-hours after the handover, in case there is anything we can do to help you settle in. The Site Manager will then arrange two further visits (one at 7-days and one at 28-days), giving you the opportunity to report anything that may need rectifying, or to ask any questions once you’ve had chance to try out your new home. For extra peace of mind, our new-build homes come with a ten-year LABC Warranty, one of the UK’s leading new-home warranty providers, which covers any structural defects that may appear within the first ten years.
Register your interest
So now it’s even easier to buy one of our brand new homes with the Help to Buy scheme, and the best thing is…anyone can qualify! To make an enquiry, or for more information, simply click the Register Interest button below.