Useful FAQs

Discover all our useful FAQs below covering topics from Help-to-Buy to Shared Ownership and loads more and for even more information, check out our latest insights.
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What are house moving costs?
It’s important you have enough saved to cover all costs when moving house. There are some payments to be made beforehand, such as: Deposit Valuation fee Stamp duty Surveyor’s fees Legal fees Solicitors fees Electronic transfer fee Insurance Removal costs Furniture
Is moving house stressful?
You may have heard myths surrounding moving house about how stressful it can be. After all, you are changing your routine, perhaps moving away from friends and family or maybe you’re just feeling unprepared for the move. Everyone will have their own personal experience and whether it’s deemed ‘stressful’ or not is down to the individual.
Can moving house affect your credit score?
You need to have a permanent address in order to get credit. So how long you’ve lived at one address can affect your credit score. If you regularly move house, this could have a damaging affect to your credit rating, however if you’re moving for the first time or not very often, it shouldn’t affect it too much.
How does moving house work?
By choosing Space Homes to purchase your new home, you can rest in the knowledge that no matter where you are on the property ladder, our team are here to help every step of the way. So whether you’re a first time buyer or up-sizing to a bigger family home, we can help you find your space.
When moving house, what do I do about gas and electric?
If you're moving out for the first time and need to set up a new gas and electric supply, this could be a great opportunity to get a good deal. Call around different gas and electric providers to find the best deal, or use a comparison website such as comparethemarket.com to find the best deal for you. If you’re changing your address, you need to inform your gas and electric supplier. Give them a call to inform them and let them know what your new address will be. Aim to do this around 2 weeks before you move, then it'll give them enough time to set up your new account. On the day you move, take your meter readings so you're not charged for anyone elses energy use after you've moved.
When moving house, what do I do about council tax?
If you’re moving out for the first time and need to sign up to start paying council tax, you can do so on the Government website. Click here to register. When moving house, you’ll need to inform the Local Authority of where you’re moving from and where you’re moving to around a month in advance of your move. How much council tax you’re charged could change depending on your new location and the value of your new home. You can usually find a ‘change my address’ section on your Local Authority’s website and you can update your new details online. Don’t forget, you’ll need to do this for each adult living in your home.
Will moving house affect my car insurance?
Believe it or not, car insurance should be on your checklist of who to inform once you’ve changed your address. In fact, if you change your name, address or occupation, your insurer and the DVLA need to know about it. If you don’t update your details with your car insurer, your cover may not be liable should you come to need it, or you could even face a fine. If you’re moving to an area with heavier traffic or more frequent accidents, your car insurance rates may rise, so it’s important to keep your car insurer in the know if you change your personal details.
What is Shared Ownership?
Shared Ownership is a great way to get on to the property ladder when you can’t quite afford to buy a home on the open market. Shared Ownership allows you buy an initial share of your home between 25% and 75% based on your affordability. You will then pay a small monthly payment to rent the remaining share from us. The scheme works by offering a percentage of the full market value of the property. For example, if your chosen property is worth £100,000 and you can finance a mortgage of £50,000 you would eligible for a 50% share and would pay a discounted rent amount on the remaining 50% share that we own. When you’re in your home, you can purchase additional shares or even the remaining share until you own the property outright. There are no timescales or deadlines on when you have to do this, it is completely your decision. This process is called staircasing. The more shares you purchase, the lower your monthly rent payments will be.
Am I eligible for the shared ownership scheme?
You are eligible for the scheme if : You have a house hold income of less than £80,000 You are a first time buyer You have no ties to any other properties on completion You are unable to buy on the open market
How much will it cost?
The deposit amount will be variable depending on which lender your mortgage is with. You should also take into account the reservation fee of *£300, the mortgage valuation cost, legal fees and general moving in costs.
Do banks lend on Shared Ownership properties?
Yes, there is a wide range of mortgage products available to people purchasing a Shared Ownership home, with a surge in high street lenders who are now on board. The size of the deposit depends on a number of factors, but mortgages are available with deposits ranging from as little as 5% of the value of the share you purchase.
Where can I apply for the shared ownership scheme?
To check you are eligible for the scheme and to apply, you just need to complete a form on the Help to Buy NEYH website here. Once this is approved, you can then book a viewing with our sales teams at the property you desire.
How do I reserve a property?
We ask for a non-refundable *£300 reservation fee which is taken off the completion statement at the end. Along with this, we will need proof of funds that you can afford to purchase this share of the property.
Can stamp duty be added to a mortgage?
Usually stamp duty is paid before you start your mortgage, up to 14 days after you've completed your new home purchase. Typically the solicitor or conveyancer will require you to pay them before your completion date and you are responsible for making sure it’s all submitted on time. However, it is possible to add the stamp duty charges onto your mortgage. This will incur interest, just like your mortgage, but it means you can pay monthly rather than the upfront cost before moving into your home. This will depend on your mortgage lender, so it's important to check with your mortgage lender beforehand.
Can stamp duty be paid in installments?
It is not possible for you to pay your stamp duty in installments. Usually, you have 14 days after the date you completed the purchase of your home (completion day/the day you move in) to pay your stamp duty land tax. If you don’t submit your stamp duty land tax return within the 14 days, you could be charged a penalty of up to £200, and charged interest on the amount you have to pay.
How is stamp duty calculated?
There isn’t one standard stamp duty charge for every house in the UK. Stamp duty has several rate bands, and how much you pay will be calculated on the part of the property purchase price falling within each band. Here is an example of buying a home worth £275,000: On the first £125,000 0% £0 On the next £125,000 2% £2500 On the final £25,000 5% £1250 Total Stamp Duty Land Tax payable: £3750 *Residential leasehold properties are charged differently. So although it may sound like 'just another tax' to pay, the amount you'll be charged will depend on the property you buy. It's a good idea to find a stamp duty calculator online when you've found the home you'd like to reserve, so you can check your affordability before you reserve.
How is stamp duty paid?
Usually, your solicitor will deal with your stamp duty and any payment due, although you can do it yourself. Although it could be your solicitor dealing with it, it’s still classed as your responsibility to ensure its paid on time. You can send your stamp duty land tax return online or through the post. You can find out more about the ‘how’s, who’s and why’s’ of filling in your stamp duty land tax return on the Government website.
What stamp duty will I pay?
The stamp duty you pay will depend on the value of your home. Although there is currently a stamp duty holiday running until 31st March 2021, here is the eligibility for stamp duty for first time buyers, second steppers and shared ownership home owners. First time buyer If you’re buying your first home, you won’t have to pay any stamp duty unless your home is worth more than £300,000. Stamp duty relief for first time buyers buying a house for £300,000 or less has been in place since November 2017. If you’re a first time buyer and purchasing a home worth between £300,000 and £500,000, you’ll have to pay stamp duty land tax at 5% on the amount of the purchase price in excess of £300,000. First time buyers who are purchasing a property for more than £500,000 will not be entitled to any relief and will pay stamp duty land tax at the normal rates. Second steppers If you’re buying an additional residential property over £40,000, you’ll have to pay an extra 3% in stamp duty on top of current rates. *This increased rate doesn’t apply to caravans, mobile homes or houseboats. Sometimes there is a delay in selling your previous home, which will affect the stamp duty you pay. If there is a delay in selling your previous home, you will have to pay a higher stamp duty rates as you will own 2 properties. However, if you sell or give away your previous main home within 3 years of buying your new one, you can apply for a refund of the higher stamp duty land tax part of your stamp duty bill. Shared Ownership homeowners Since October 2018, first time buyers under shared ownership schemes can claim first-time buyers stamp duty relief on homes worth up to £500,000. If you purchased your home on or after 22nd November 2017, you’ll be eligible to claim back first-time buyers stamp duty relief.
What stamp duty do I pay on a second home?
If you decide to buy another home such as a buy-to-let home or a holiday home, you will have to pay an extra 3% stamp duty. The additional 3% applies to properties at and above the value of £40,000. Please note this doesn’t apply to caravans, mobile homes or houseboats.
Am I eligible for the Help to Buy scheme?
The Help to Buy scheme is only be open to first time buyers. This means if you have owned a home previously, or own a home at the time of applying, you will not be eligible. The price of eligible properties are be capped by region. For Yorkshire, the purchase price is capped at £228,100. Properties on sale for a higher price will not be eligible. The maximum equity loan amount given by the government for purchases outside of Greater London is 20% of the purchase price. The minimum buyer’s deposit is 5%. The process of buying a home can take several months, so it’s important to give yourself enough time to take advantage of the scheme.
How does the Help to Buy scheme work?
Help to Buy allows you to own 100% of your home and only pay 80% up front. You will need to provide a 5% deposit and the government will then lend you up to 20% as an equity loan. You would then need to apply for a mortgage based upon the remaining 75% The table below gives an example of using Help to Buy to buy a £190,000 home. Cash Deposit 5% £9,500 Equity Loan 20% £38,000 Mortgage 75% £142,500
When does the Help to Buy scheme end?
The Help to Buy scheme for first time buyers will run from 1st April 2021 until 31st March 2023. After this date, the Help to Buy scheme will close to new applications.
What are the regional price caps for Help to Buy?
In an attempt to help first time buyers onto the property ladder, the Help to Buy scheme features regional price caps based on average starter home prices in the area. Each average price is multiplied by 1.5 to calculate the cap. Properties over each regional amount will not be eligible for the scheme. Regional price caps for the Help to Buy scheme from April 2021: North East - £186,100 North West - £224,400 Yorkshire and The Humber - £228,100 East Midlands - £261,900 West Midlands - £255,600 East of England - £407,400 London - £600,000 South East - £437,600 South West - £349,000
How does the new Help to Buy scheme work?
If you’re a first-time buyer in England, you can apply for a Help to Buy: Equity Loan. This is a loan from the government that you put towards the cost of buying a newly built home. You can borrow a minimum of 5% and up to a maximum of 20% (40% in London) of the full purchase price of a new-build home. To use the Help to Buy scheme, there is an eligibility criteria you have to meet. Take a look at the criteria here: The Help to Buy scheme will only be open to first time buyers. This means if you have owned a home previously, or own a home at the time of applying, you will not be eligible. The price of eligible properties will be capped by region. For Yorkshire, the purchase price is capped at £228,100. Properties on sale for a higher price will not be eligible. The maximum equity loan amount given by the government for purchases outside of Greater London will still be 20% of the purchase price. The minimum buyer’s deposit is still 5%.
What happens with your Help to Buy loan after the 5 years?
After 5 years of taking out your Help to Buy equity loan, there are a few changes to note. You continue to pay £1 monthly management fee. You start to pay a monthly interest fee of 1.75% of the 20% equity loan. Your interest fee will rise each year in April (RPI) plus 1% until you repay the loan. You will continue to pay interest until you repay your loan in full. You must also repay your equity loan in full. This happens at the end of the equity loan term, when you pay off your repayment mortgage or when you sell your home. If the market value of your home rises, so does the amount you owe on your equity loan. If the value of your home falls, the amount you owe on your equity loan falls too.
How does a Help to Buy mortgage work?
The mortgage you take out on your home will be for 75% of the properties value. For example, if you purchased a home at £190,000, your mortgage would be for £142,500. You will have paid a 5% deposit and the other 20% is an interest-free loan. Your 75% mortgage works similarly to a regular mortgage - you have set payments each month. You take out a help to buy mortgage, typically for 25 years.
How does Help to Buy work when selling your home?
When/If you decide to sell your current home that you bought using help to buy, you will have to repay your equity loan at the same time. The 20% loan you initially took out will have to be re-paid – if it’s been less than 5 years, the loan will still be interest free, however if it’s after 5 years, you’ll have to pay any additional interest that has incurred on the loan. For example, if you bought a home at £200,000 and you sold it for £210,000, you’d have to re-pay your 20% equity loan at £42,000 and your 75% mortgage at £150,000.
When does Help to Buy scheme end?
The new Help to Buy scheme officially ends March 2023.
Can Help to buy be used on any new build home?
Yes – the Help to Buy scheme is only available on new build homes. The scheme is designed to allow anyone looking to buy a house an opportunity to dive onto the property ladder. It’s a great opportunity to get on the ladder with a low deposit. Currently available to both first time buyers and second steppers, the scheme is available only on new build homes.
What is a mortgage?
A mortgage is a loan taken out to buy a residential property or land. A bank or building society provides a loan against the value of your home until it’s paid off. Most buyers pay monthly repayments to the lender for around 25 - 35 years to pay off their mortgage. If you can’t keep up your repayments, the lender can repossess (take back) the property.
How does a mortgage work?
When you buy a home, you’ll typically put down your deposit. This is a percentage of the property’s total purchase price (usually between 10% and 20%). You then pay the remaining cost of your home with a mortgage. You legally own your own home and make monthly repayments on the mortgage until eventually, you have paid off your mortgage and own the home 100% outright.
How much deposit do you need for a mortgage?
To buy a new home, you’ll need to pay a deposit. This is a lump sum of money that goes towards the cost of the property you’re buying. The remaining cost of the property is taken out as a mortgage, which you’re charged interest on. The bigger the deposit you pay, the lower your interest rate could be.
How will I know how much I can afford?
When the lender is assessing how much they’re willing to lend you, they will take into account the following: your income, your outgoing and any future changes. It’s important to seek advice from a mortgage advisor. This will give you chance to fully analyse your finances and their professional advise will mean you can decide on the best type of mortgage for you, how much you can repay each month and find the best mortgage rates.
How long does it take to pay off a mortgage?
This is dependent on the terms and conditions of the mortgage you take out. Lenders usually take 25 years, however, some lenders will offer up to 40 years to pay off your mortgage.
Where do I get a mortgage?
You can apply for a mortgage from a bank or building society. At this point, it’s advised that you seek professional advise from a financial advisor. Using a financial advisor means they can compare the different types of mortgages on the market and advise which ones are best suited to you. They will be able to compare the different mortgage rates on the market and match the best one to you and your current situation.