McAssist: All you need to know
Find answers to the most frequently asked questions right here - relax, we are here to help you every step of the way.
How much can I afford to spend on a new home?
At McInerney Homes we work with specially selected independent financial advisors (IFA) to get you the best advice possible and to find the right mortgage to suit your circumstances.
In theory, you can afford a property costing no more than the combined total of the deposit that you saved (or can save) plus the amount you can borrow on mortgage.
Typically, this is three times the principal income plus one times the second income. But some lenders will lend more.
I need a mortgage. Where do I start?
If you need a mortgage to purchase your new home and have not yet made arrangements, this is the time to make a formal application based on the purchase price and details of your chosen plot.
We would suggest that you speak to an independent financial advisor (IFA) as soon as possible. They will provide you with information on the best mortgage package to suit you. As with solicitors, we will be pleased to recommend one of our nominated Independent Financial Advisors, who are regulated by the Financial Services Authority.
If you are employed, your mortgage lender will usually want to see the following forms of documentation:
• Proof of identity, such as a passport, photo card driving licence or birth certificate
• Evidence of your income and commitments, such as recent pay slips, a P60 and your recent bank statements
• Employers reference (certainly where you have not been in your current employment for a year)
• Information from credit reference agencies, which will show your history of repaying loans in the past and from your landlord if you are currently renting.
Your application could be turned down if you are unable to provide all of the requested information, if you have a poor credit history or you want to borrow more money than the lender is prepared to offer.
Your lender will arrange for a qualified valuer to inspect the property you want to buy and check its value. This valuation, is carried out purely to help the lender decide whether to provide you with a mortgage on the property and, if so, for how much.
Once the lender is certain that you will be able to repay the mortgage - and is satisfied with the valuation report on the property - it will issue a formal mortgage offer, which you must accept if you want to go ahead. At this point all the legal work needs to be completed. ASAP.
Please bear in mind that if your mortgage application is turned down, it is worth trying other lenders who specialise in loans to people with more unusual circumstances. Please be aware, however, that the cost of their mortgages may be higher than that from a 'normal' lender, so carefully research all of your options
If you are self employed
It can be more complicated to apply for a mortgage as a self-employed person, than if you're an employee.
You’re not automatically viewed by mortgage lenders as risky, but they will want a guarantee you'll be able to repay your loan.
For this they will want proof of regular income. If you're self-employed you might find it very difficult or impossible to provide this as you won't have pay slips or a P60 and may have a slightly more irregular income pattern than those who receive a regular monthly salary or weekly wage.
The majority of lenders accept alternative financial documentation as proof when you apply for a standard mortgage, such as three years of audited accounts from a chartered or certified accountant, or three years self assessment tax returns approved by the Inland Revenue. And some lenders accept just one or two years' paperwork if, for example, you have a deposit of 25% or more.
In terms of salary multiples, lending criteria will be the same as for the employed, but your accountant could be asked to verify that your business is bona fide.
There are numerous mortgage options specifically designed for self-certification as well as full status deals available on a self-cert basis. They are available from IFAs, mortgage brokers and high street lenders. McInerney Homes’ recommended IFA can put you in touch with a suitable lender.
What is a valuation survey?
Prior to making a mortgage offer your lender will have the property valued for mortgage purposes.
A small fee will normally be payable by you for this survey.
What happens if I have a house to sell?
If you are selling your present home, the timing of the exchange of contracts is finely worked out.
It is up to your solicitor to ensure that both sets of contracts - the sale of your existing home and the purchase of your new home - are exchanged simultaneously and a suitable moving day arranged so at no time are you 'homeless'.
I need a solicitor. Where do I start?
McInerney Homes will provide you with a list of nominated solicitors – who have great experience in new homes ,who understand the importance of working to agreed timescales.
The solicitor's main job is to ensure a smooth transfer of the property and any fixtures and fittings agreed in the sale. He or she prepares the 'conveyance', which transfers legal ownership to you.
It will be your solicitor’s role to act for you throughout the home buying process including checking all the necessary legal paperwork and carrying out legal searches. Please provide any requested information promptly to ensure that there is less likelihood of delays throughout your purchase process.
If you need a mortgage to purchase your new home and have not yet made arrangements, this is the time to make a formal application based on the purchase price and details of your chosen plot.
When does the sale of the house become legally binding?
Your solicitor will arrange for you to sign a binding purchase contract. At this time any agreed deposits will need to be paid. McInerney Homes will also sign their copy of the contract and send it to their solicitors.
Once these contracts are exchanged the transaction becomes legally binding.
If you are selling your present home, the timing of the exchange of contracts is finely worked out.
It is up to your solicitor to ensure that both sets of contracts - the sale of your existing home and the purchase of your new one - are exchanged simultaneously and a suitable moving day arranged so at no time are you 'homeless'.
What is the difference between Leasehold and Freehold?
Leasehold: Land held under a lease for a specified number of years on which a ground rent (usually a nominal sum) is paid.
Freehold: The full ownership of both the property and the land on which it stands.
Before you instruct a solicitor to act for you, we recommend that you ask for a written estimate of all fees (including VAT) and details of all disbursements payable such as Local Authority searches, Land Registry fees and Stamp Duty
When should I insure my new home?
Your new McInerney home will be insured by McInerney Homes until the moment of legal completion. From then on you are responsible for the insurance of both the buildings and its contents.
Your mortgage lender will insist on building insurance. They may recommend an insurer but you should also be able to shop around for the best deals - please check with your lender on the type and amount of cover required.
Contents insurance can in many cases be included within the building insurance policy. However you can have separate insurance providers for buildings and contents. It is your choice whether to insure your contents or not.
There are 'Common Areas' mentioned in the property details. What does this mean?
These are the areas within a development which do not form a plot to be assigned to an individual proprietor. They include play areas, landscaped areas, roads and footpaths that are not intended for adoption by any of the relevant local authorities.
Within flatted areas on a development, this may include parking areas, street lighting, and communal stairways, which are not intended for adoption by the local authority.
For full details on how the full Sales Process works, please refer to our Home Buyers Guide section for a comprehensive guide to purchasing a new home.
We’ve put together this useful guide to answer any questions you might have and to explain the new home buying process.