Buying your first home

Whether it's alone or with a partner, taking your first step onto the property ladder can be an exciting time, however there’s a lot to take in and it can easily become confusing. But the team at P&M Financial are here to help!

If you are experiencing financial difficulty and struggling to make repayments, then you can contact your lender who may be able to help taking account of your individual circumstances. You may want to contact one of the free impartial money guidance and debt advice services such as StepChange, Citizens Advice, or Turn2Us.

What is a mortgage?

A mortgage is a loan which is taken out to buy a property or piece of land. Most mortgages run for 25 years however the term can sometimes be shorter or longer. In order to place a deposit you will need to have saved 5% of the asking price and take out a loan (the mortgage) from a lender such as a bank or building society. The Initial deposit will also affect your mortgage, and the type of mortgage you will be able to have.

Stamp Duty

Wondering how much tax you pay when buying?

What is stamp duty?

Stamp Duty is the tax attached to buying a property. It’s an obligatory payment and is calculated based on property purchase price.

NB - Stamp Duty as of Dec 2022

Stamp duty calculator

Use our handy stamp duty calculator below to better understand the costs when moving 🔑

Say Goodbye to Stamp Duty!

Starting September 2022, a fantastic change is here for First Time Buyers like you. If you’re purchasing a home valued at up to £625,000, you’re in for some great savings!

Here’s how it works: If your dream home costs up to £425,000, you won’t pay a single penny in Stamp Duty. Zero, zilch, nada!

Even if your property’s price tag goes beyond £425,000 but stays under £625,000, you’ll only need to pay a modest 5% Stamp Duty on the extra amount above £425,000. That’s right – just a small percentage on the difference.

And the best part? You don’t need to lift a finger to enjoy these savings. Your trusted conveyancing solicitor will take care of all the details to ensure you qualify.

To make sure you’re eligible for the Stamp Duty exemption:

  1. You’re a First Time Buyer (never owned a property before).
  2. You’re buying a home to live in.
  3. Your home costs less than £425,000 (yay, no Stamp Duty!).
  4. Your home’s price is under £625,000 (only pay Stamp Duty on the amount exceeding £425,000).
  5. Your property is not in Scotland or Wales (slightly different rules apply there).

Quick note: Here’s what it means to be a First Time Buyer in this case:

  • You’ve never owned any property, even if you’ve already sold it (yes, that includes inherited properties).
  • No previous property ownership abroad.
  • If you’re buying jointly, both you and your partner must be First Time Buyers.

Commercial properties? No worries – you can own those and still enjoy the Stamp Duty benefits. The FCA does not regulate Commercial mortgages and we act as introducers for it.

Property Tenure

Unsure of what the difference is between a leasehold and a freehold? Both are ways of owning a property so it’s important that you understand the difference as it affects aspects of buying, owning and selling your home.

What is a freehold?

If you are a freeholder of a property, it means that you own it outright, including the land it’s built on. If you buy a freehold, you’re responsible for maintaining your property and land, so you’ll need to budget for these costs.

There are many benefits of owning a freehold property, such as not having to worry about the lease running out, or having to pay ground rent or any landlord charges.

What is a leasehold?

When you have a leasehold, it means you own the property (subject to the terms of the leasehold) for the length of your lease agreement with the freeholder and therefore when the lease ends, ownership returns to the freeholder, unless you can extend the lease.

Most flats and maisonettes are owned leaseholds. If the property has been sold to you as a leasehold, you are the owner of the property but not the owner of the land.

Conveyancing Can Be Confusing!

That’s why we have put together this comprehensive guide to explain the process

Get in Touch

Call or message me personally to start your journey to buying a property!