Frequently Asked Questions


Do I need to be a first time buyer to take advantage of the government’s help to buy equity loan scheme?

You do not have to be a first-time buyer. The scheme is also open to next time buyers.


The likelihood is, if you’re selling a property and making an onwards purchase, you may have more than 5% of your own money to put towards the deposit.


Whatever deposit you have will be added to the help yo buy scheme loan (up to 20% of the value of the new property) and whatever remains will be the mortgage you require.

What is a Conveyancer and what do they do?

What is a Conveyancer and what do they do?

If you are buying or selling property, you’ll need to instruct a conveyancer. There is conveyancing work involved if you re-mortgage. That is, change your mortgage from one lender to another lender but there is no purchase or sale involved.

A conveyancing solicitor helps sort out all the legal work, the obligations of both the vendor and buyer and transfers the title from the vendor to the buyer in accordance with the contract of sale and meeting any conditions met by a mortgage lender.

A conveyancer is likely to:

Arrange documents to be signed and draw up legal contracts which is a primary requirement and vital with any property transaction.

Prepare the Contract of Sale and make sure any special conditions are included in the final contract. This avoids any conflict later.

Advise you regarding the legal work – helping you to complete the process successfully and with the least problems.

Arrange the redemption (repayment) of any mortgages.

The buyer and seller’s conveyancers will coordinate with each other to arrange a suitable date for exchange of contracts and subsequently completion.

The contract is legal at the time of exchange of contracts but sometimes the completion doesn’t happen at the same time.

The conveyancer may ask to see confirmation of the property’s building insurance at the time of exchange of contracts to cover you from the period of time your purchase becomes legally binding (exchange of contracts) and the time you take over the keys (completion).

If you have any further questions, please get in touch!


How much Stamp Duty Land Tax (SDLT) will I pay?

What is Stamp Duty Land Tax (SDLT)?

Stamp duty is a tax payable on property or land purchases in England or Northern Ireland.

You’ll pay the duty on property purchases (for your main residential home) on more than £125,000 or, if it’s a second property, on purchases more than £40,000.

Different taxes apply in Scotland and Wales, currently.

How much Stamp Duty Land Tax will I pay?

The amount of stamp duty you’ll pay depends on the value of the property you’re buying.  The duty is levied according to the purchase price.

If it’s your residential home, you’ll pay:

0% up to £125,000

2% on the amount between £125,001 and £250,000

5% on the amount between £250,001 and £925,000

10% on the amount between £925,001 and £1,500,000

12% on anything over £1,500,001

It sounds complicated, but here’s a stamp duty calculator, courtesy of Gov.UK: Stamp Duty Calculator

You will pay an additional 3% Stamp Duty if you’re buying a property to rent out (investment property)or if you’re buying a second home or a holiday home.

In other words, if you’re buying a property that isn’t your MAIN residence.

You would need to select the 2nd property option when using the stamp duty calculator.

On 8th July 2020, the government announced a Stamp Duty holiday on purchases up to £500,000 for both first time buyers and next time buyers.  The holiday will last until 31st March 2021 and is aimed to drive the property market out of the depression left by the Covid-19 pandemic.

2nd property purchases will also see a benefit.  They will only attract the 3% surcharge on property prices up to £500,000.

How will the Stamp Duty Holiday Work?

Please see this article provided by the BBC: BBC Article

Heide provided a video when the Holiday was announced. 


If you’d like any help then please get in touch!







How much deposit do I need to save to buy my first home?

How much deposit do I need to save to buy my first home

The amount of deposit you need to buy your first home will really depend on the value of the property you want to buy.

The amount of deposit you put down on a new home will determine the loan to value (LTV) of the mortgage you will need.

For example:
Take a purchase price of £300,000.

A 20% deposit would be £60,000.

The mortgage you would need to cover the remainder would be an 80% LTV mortgage.

In other words, the mortgage is 80% of the property’s value at the time of purchase.

The minimum deposit you will need is 5% but a mortgage with an LTV of 95% will attract the highest interest rates.

If you can save a deposit of 10% then that is likely to attract a better interest rate, therefore reducing your initial monthly repayments.

The interest rates will reduce, the lower the loan to value of the mortgage. That is, the more deposit you can put down the lower your repayments are likely to be.

It is never too early to start saving for your first home.

You could start a children’s savings account for your child.

For example, Metro Bank offers a 5 for 5 Club whereby if your child makes 5 savings deposits in separate months into their young savers account, Metro will deposit £5 until they are 15 years old.

Now it is no longer possible to start a new Help to Buy ISA for your new property purchase, you may want to consider a Lifetime ISA to start saving for your first home.

This is open to anyone from the age of 18 up to 40. You can save into this account up to the age of 50.

The maximum investment per year is £4,000 and the government will add a 25% bonus every year up to a maximum bonus of £1,000.

For more details, click the link below. Please note there may be penalties for withdrawal for reasons other than buying your first home.



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