First Time Buyers. A guide to owning your first home

Transcription

1 First Time Buyers A guide to owning your first home

2 Helping you to get on the property ladder Fed up living with others? Been dreaming of owning your own home? If the answer is yes, then take a look at what we can do to help you achieve your dreams. At Danske Bank, we are helping First Time Buyers get onto the property ladder. We offer a range of mortgage products which are all available to First Time Buyers and also have some great incentives that you can take advantage of too. Read on to find out more about how you can buy your first home with a Danske Bank mortgage. Whether we provide credit depends on your circumstances, and you must be 18 or over. Lending terms and conditions apply. Your home is security for your mortgage. Other security may be required. You must be in permanent employment (i.e. successfully completed any probationary period) and not be employed on a fixed term contract. 2

3 Choose from our range of mortgages Which mortgage should you choose? Finding the right type of mortgage is a very individual process and we re here to help. We offer a range of straightforward, easy to understand products and our Mortgage Consultants are specially trained to assess your needs and help you find the Danske Bank mortgage that s right for you. The overall cost for comparison is 4.7% APR. The actual rate will depend upon your circumstances. Ask for a personalised illustration. The types of mortgages we offer include: Base Rate Tracker Our Base Rate Tracker does just that, it follows Danske Bank Base Rate (UK) for the full term of the loan and any changes to our Base Rate (whether up or down) will be passed on to you immediately. Key features and benefits Base Rate Tracker mortgages track the Danske Bank Base Rate (UK). If interest rates go down at any time, so will your mortgage payments. On the other hand when rates go up your payments will too Your interest rate is linked to Danske Bank Base Rate (UK) for the full term of the loan. That means this is a deal that lasts for the life of the mortgage No Early Repayment Charges No restrictions on making overpayments or lump sum payments and as interest is calculated daily, this means you get the benefit straight away Minimum Loan: - 30,000 for new Danske Bank residential mortgage customers - 10,000 for existing Danske Bank residential mortgage customers Maximum Term 30 years YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE. APR stands for annual percentage rate. It aims to give people a more accurate idea of how much money theyare being charged when they borrow money. It allows people to compare the total cost of borrowing money for different types of loan, and lengths of time. 3

4 Fixed Rate Choose from a range of Fixed Rate options. With a Fixed Rate mortgage you know exactly how much you ll be paying each month during the agreed fixed rate period. Early repayment charges apply during the fixed rate period. Remember, at the end of a Fixed Rate period your repayments may increase. Minimum Loan: - 30,000 for new Danske Bank residential mortgage customers - 10,000 for existing Danske Bank residential mortgage customers Maximum Term 30 years Key features and benefits Choose from our range of Fixed Rate terms of up to 5 years You know exactly how much you will be paying each month during the agreed fixed rate period Offers peace of mind that the interest rate won t change during the agreed fixed rate period With our great range of products and expert advice, we can help you find a mortgage to suit your needs. A Danske Bank personal current account will be required to service your mortgage. You can get full details of fees, service charges and interest rates that may apply to the Danske Bank personal current accounts from all Danske Bank branches in the UK and on our website at An independent professional valuation may be required. Our mortgages are only available for properties in Northern Ireland. 4

5 Payment Terms Capital & Interest Repayment This is where your repayments cover both capital and interest, which means that your loan will be fully repaid at the end of the term. Up to 30 years to pay You can choose any repayment term up to 30 years. Mortgages in Retirement You will be required to provide us with evidence of affordability in retirement if the mortgage term takes you beyond normal retirement age. Deposits from just 5% Helping First Time Buyers get onto the property ladder, we may lend you up to 95% of the value of the property you want to buy. More good news for First Time Buyers! Cashback Incentive Scheme If you are buying your first home, you could qualify for our incentive scheme that provides help with costs. With this you get: cashback of 500 when you agree to mandate your salary to a Danske Bank personal current account for a period of three years. We will ask you to pay back a certain amount of this cashback if you close your personal current account within 3 years of getting the mortgage (known as a clawback ). You can ask for details of the cashback available (and the clawback arrangements) when you apply for the residential mortgage. You can get details of fees, service charges and interest rates that may apply to Danske Bank personal current accounts from all Danske Bank branches in the UK and on our website at No higher lending charges apply, but other fees and charges such as solicitors fees may apply which are not charged by us or paid through us. 5

6 Protecting your home Your home is probably your single biggest financial commitment, so it makes sense to prepare for the unexpected and make sure you, your family and property are protected for the future. If you have a mortgage, you must have adequate buildings insurance in place. You do not have to arrange this cover through Danske Bank. All other insurances referred to in this leaflet are optional. So, what protection might you need? Contents Insurance for your New Home At Danske Bank we realise the contents of your home and your personal possessions are very important assets to you. With this in mind, we recommend that you seek cover with an appropriate provider. Features you might look for include family legal protection, credit card cover, cover for contents in the open and freezer cover, with accidental damage options. Life & Critical Illness Cover At Danske Bank, we can provide you with advice on Life and Critical Illness Cover. Life Insurance Cover designed to repay your Mortgage in the event of your death Critical Illness Cover designed to repay your Mortgage in the event of you being diagnosed with a specified critical illness and being eligible to claim For full details and a personal quotation, please ask your Mortgage Consultant who will be pleased to provide you with recommendations to help meet your individual needs. Insurances are subject to eligibility. Further information can be provided separately. 6

7 Step by step guide to buying your first home If you re just starting to look for your first home, here are some useful steps to help you on your way. 1. Find out how much you can borrow Before you start looking for a new home, it makes sense to have some idea of how much you can borrow. Although taking on a mortgage is a big commitment, it doesn t mean an end to life as you know it. It s important that you work out what you can afford, and leave yourself enough money to enjoy life. At Danske Bank we will look at your individual circumstances and consider what you can afford to repay when calculating how much you can borrow. Speak to a Mortgage Consultant or visit today. 2. Find your home When you have found out how much you can borrow, it s time to find a house. Find out what s on offer by registering with local Estate Agents, check online and in the local papers and watch out for For Sale signs in the area. View as many properties as you can to get an idea of what s available Make an Offer Once you ve found the property you wish to buy, it s time to make an offer. Remember: The asking price is how much the seller hopes to get, which may be more than they actually expect to get. If the market conditions favour buyers, this can give you a little room for negotiating. Always consider how much the property is worth. The cost of any repairs which you will need to do to the property. To remind the Estate Agent that you are a First Time Buyer with no home to sell. 4. Apply for your Mortgage You can arrange a Danske Bank mortgage in branch or by telephone. Call us today on At Danske Bank, all of our Mortgage Consultants are fully qualified to provide advice and recommend the best mortgage option for you. At your mortgage interview, we will also discuss your insurance requirements.

8 5. Appoint a Solicitor You will need to appoint a solicitor to prepare the paperwork and deal with the legal side of the sale. 6. Get the Property Valued The Valuer will carry out a basic valuation for mortgage purposes looking at things such as the age, condition, area and prices of similar properties in the area. This report is not a detailed survey and will not highlight any defects. You can ask for a more thorough survey that will provide more detail and identify any defects. 7. Sign the Contract Once your mortgage is agreed, valuations and surveys are completed, and the solicitors have prepared and checked all the documentation without finding any problems, you are now ready to sign the contracts. 8. Put your Insurances in place Once you have signed the purchase contract, you can advise your insurance provider of the date you would like your cover to start (it is usual to put buildings insurance in place from the date the contract is accepted by the seller). 9. Move In You ve done it you now have your own home. Don t forget to notify your change of address to the relevant people (e.g. electricity company, doctor, dentist, telephone company) and contact Royal Mail to arrange for your post to be re-directed. 10. Celebrate Organise a house-warming party, invite your friends and family round and celebrate! After this there s no turning back both parties are committed to the sale and purchase and the date of completion will now be fixed. Start preparing to move! 8

9 So, interested in buying your first home? To find out more, talk to a Danske Bank Mortgage Consultant today. Call us on * Preparing for your Mortgage Interview One of our advisers will contact you prior to your mortgage interview. They will get some basic details from you and confirm the date and time of your meeting. To help speed the process up, it is important that you bring the correct documentation to your interview. Details of the documents you will require are set out below: Item Documents Required Checklist Proof of Identity Proof of Address Proof of Income Employed Self-Employed Bank Details Details of any existing financial commitments Current Passport /Driving Licence Utility bill / bank statement dated within last 3 months 3 months payslips and most recent P60 Last 3 years certified / audited accounts Most recent 3 months statements from main transactional account (if your account is held with another bank) Details such as the up to date balance, length of agreement and monthly repayments of any existing borrowing (e.g. credit cards, store cards, personal loans, hire purchases.) For details of other acceptable documents please ask a member of staff. *Lines are open between 8am and 8pm Monday to Friday and between 9am and 4.30pm on Saturdays, except for bank holidays or other holidays in Northern Ireland when the bank is not open for business. We may record or monitor calls to confirm details of our conversations, for your protection, to train our staff and to maintain the quality of our service. Call charges may vary. Please refer to your phone company for more details. 9

10 Registered in Northern Ireland R568 Registered Office: Donegall Square West Belfast BT1 6JS Danske Bank is a trading name of Northern Bank Limited which is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Northern Bank Limited is a member of the Danske Bank Group. This publication is also available in Braille, in large print, on tape and on disk. Speak to a member of staff for details. Correct as at 04/2015 COM UK