S P E C I A L A D V E R T I S E M E N T S U P P L E M E N T The Mail on Sunday October 13, 2013

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READY TO BUY? DON’T DO A THING WITHOUT READING OUR GUIDEDON’T MOVE – IMPROVE LOVE YOUR HOME? HERE’S HOW TO MAKE IT EVEN BETTEREMPTY NEST? HERE’S HOW TO MAKE YOURS PAY!

Home at last!

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Getting a mortgage can be like learning a new language – especially when you look at the different schemes for low-deposit first-time buyers. Here are the three most important terms to translate.HELP TO BUY ONE. It applies to new-build homes and is available now. You put down a five per cent deposit, you get a further 20 per cent of the property price in a five-year interest-free loan from the Government (after five years you pay 1.75 per cent interest on the money) and you get a mortgage for the rest of the money you need. Halifax, Nationwide, Nat West and Woolwich are all keen to lend.HELP TO BUY TWO. It started on 7 October and is designed to help both first-time buyers and existing homeowners move up the housing ladder. You will just need to raise five per cent deposit to buy a property worth up to £600,000. The Government will guarantee up to 15 per cent of the loan and it should allow people to get access to decent mortgage rates. Lloyds and RBS have signed up already, and more lenders are expected to join the scheme soon. SHARED OWNERSHIP. These have been running for years – and seem to have fans and critics in equal measure. Their goal is to let first-timers buy between 25 and 75 per cent of a home and then rent the rest. Sellers are mainly housing associations and let you buy more if your income rises. Go to www.helptobuy.org.uk for more information on all three schemes.

JARGON BUSTER

F irst-time buyers are in the news like never before. More than 25,000 got the keys to their very own front doors at the start of the summer – up 40 per cent in just a year.

But research by the Financial Services Compensation Scheme (FSCS) shows just how hard it can be to join the party. Its survey shows that seven out of ten potential first-time buyers have been put off by the high cost of buying.

So what should you do if you’re looking for a place to call your own? Best advice is not to panic. If you’re renting then ask your landlord if you can redecorate to put your own stamp on the place. That can make it feel like home for much longer. If you’re saving up to buy then make sure your cash is safe – see below. And if you’ve been saving for a while and you’re ready to take the plunge and buy then follow our four key tips. Owning your own home can feel fantastic. Here’s how to get there safely and easily.

These four tips should help things go well.■ TIP ONE: SORT OUT YOUR FINANCES. Before you apply for a mortgage pay £2 to agencies such as Experian or Equifax and check your credit history. This can flag up forgotten storecards, old mobile contracts or other nasties that can count against your application. Get on the electoral roll – potential lenders like it. Look at best-buy charts for low-rate mortgages – you can apply anywhere, not just to your existing bank or building society. Then pull together as big a deposit as you can – because the more you can put down, the lower your interest rate is likely to be. See page four to see how the Bank of Mum and Dad can help.■ TIP TWO: STAND OUT AT THE ESTATE AGENT. In a lot of places there are far more buyers than sellers – so, whenever a new property comes on to the market, agents run through a mental list of people they’ll show it to first. You want to be on that list. Do it by assuring them you’re a serious buyer, you’re mortgage-ready and you’re prepared to turn up for viewings at a moment’s notice, if required. ■ TIP THREE: PUT THE HOURS IN. Sign up to as many online and real-world estate agents as possible. In hot spots like London the average first-timer is on the hunt for months. If the search gets you down, then go online to look at places well below your price range. That should remind you how lucky you are – and how good it is going to feel when you get the keys to a much nicer door. ■ TIP FOUR: KEEP SOME CASH ASIDE FOR EMERGENCIES. It’s one of life’s ironies that boilers that have worked for years can break down the moment new owners arrive. Shop around for a decent savings account and put a little aside each month for maintenance. And make sure your savings are safe by using the protection checker at www.fscs.org.uk/protected

GETTING ON THAT LADDER

Property and DIY shows prove that no two home improvement jobs are ever quite alike. But some projects have a lot more potential than others. Here are six of the best.

1A LOFT CONVERSION. This has always scored

highest in HSBC’s annual home improvement surveys. The bank reckons it adds more value than anything else – and while they can be expensive they can also give the greatest return on money spent.

2A CONSERVATORY – but only if it’s done well.

Styles and fashions do change, so today’s cutting-edge design can look tired tomorrow.

3A NEW KITCHEN – and a lot of expensive

new kit. Surveys show the kitchen is a key room to

improve, while research from Aviva shows that ever-increasing numbers of listings mention ‘high spec’ appliances. So don’t skimp on the white goods.

4PARKING. Don’t concrete over your

garden. But extend your drive in some sensitive way and you can add a lot to your home’s value. Put ‘off street parking’ on a listing and you might jump into a higher price bracket overnight.

5 THE ROOF, DRAINS AND WINDOWS. We

might not really notice them – but surveyors do. Keep them up to scratch and they’ll put a better valuation on your home.

6THE FROTH. Keep a straight face and you

could ask for more if your home has ‘an outdoor room’. Even if it’s just your garden.

Desperate to buy your first home? You’re not alone. Hopeful homeowners are out in force this autumn – here’s how to get ahead of the crowd

TOP SIX HOME IMPROVEMENTS

M oving house has never been cheap. But in the last few years it’s got a lot more expensive. The internet doesn’t seem to have trig-

gered a price war in estate agency fees – so if you’re selling in some parts of the country you can expect to see more than two per cent of your home’s value – plus the dreaded 20 per cent VAT – go in agency fees.

If you’re moving up the housing ladder and edging into a higher stamp duty cate-gory, then another huge slice of money could disappear there. Buy something for between £125,000 and £250,000 and you’ll pay one per cent duty. Go over £250,000 and the tax triples to three per cent. You probably don’t even want to know what the rate is after £500,000 (though if you do, it’s an eye-watering four per cent – and even that’s not the maximum rate).

Move or improve? It’s up to you

Your dream home can easily get a whole lot, well, dreamier. Here’s how!

Don’t forget to tune into Absolute Radio’s brand new show, A Design for Life, Sunday, 7.30pm

‘I see home as a place where I don’t have to suck my stomach in when pretty girls walk past’ PETE DONALDSON

STARTING OUT

GOING UP

■ MORTGAGE FEES. Some lenders charge application fees of £999 or more for best-buy mortgages. Do some sums to see if you’re better off with a fee-free alternative, even if it has a slightly higher interest rate. Compare the total costs – fees and interest – using the calculators at www.thisismoney.co.uk■ BROKER FEES. Many estate

‘When people are about, I want them to have a good time. I’ll even give them the WiFi code. I’m not a monster’ ALUN COCHRANE

IN PARTNERSHIP WITH THE FINANCIAL SERVICES COMPENSATION SCHEME

your home

HOW MUCH? HERE’S HOW TO KEEP THE COSTS UNDER CONTROL AS YOU BUY YOUR DREAM HOME

Don’t forget to tune into Absolute Radio’s brand new show, A Design for Life, Sunday, 7.30pm

agents put you in touch with brokers who promise to find you the best mortgage. Some charge hundreds of pounds – when you might be able to shop around for deals yourself.■ LEGAL AND VALUATION FEES. Many lenders waive these for first-timers. But don’t assume a simple valuation is as good as a full survey. Pay extra for a survey to be certain your home is in good nick.

Add in mortgage costs, removal, legal, valuation and survey fees and you can see why FSCS research shows eight out of ten of us plan to stay put and make the most of our homes. Are they right? Experts agree that they can be. They say homes often contain far more potential than owners realise.

Generous room sizes can be ripe for rea-lignment. Knocking through two smaller rooms into one big, modern space can transform a home, as can adding an ensuite or an extra family bathroom. Relaxations in planning rules should make it easier to extend a little into a garden, while loft conversions continue to add more value to a home than almost any-thing else – see below.

Changing a home without getting the proper permissions can make it unsalea-ble, so best advice is to play everything by the book. But don’t assume that you’re trapped, just because the next rung of the property ladder is out of reach. So start saving and find out about FSCS protection at www.fscs.org.uk/protected.

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AMV Job No: Publication: Daily Mirror/Mail on Sunday

The best home improvements don’t just add value – you get to enjoy their benefits every day as well

Make your house a home

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There’s a magic about most family homes. They’re the places where traditions are born and memories are made. Plenty of people hope to stay in them for ever. When we

retire, we plan to spend some real time in the garden. We aim to join local societies and play a real part in our community. Or do we?

The online estate agency RightMove says it’s amazed how many of the people selling homes today are downsizing from big family homes to smaller, more manageable properties. And if ‘downsizing’ is the number one reason the site’s users give for selling, then ‘Lifestyle – fancying a change’ comes in as number two.

Apparently for everyone who dreams of ‘retiring to the country’, there are just as many who fancy heading back to town.

So what are the real pros and cons of downsizing in retirement? Here are some of the key arguments.

ONE: Every home needs maintenance – but the smaller the home, the less it’s likely to cost. Lots of people decide they don’t want to face big bills for a new roof or major repair in their

retirement. A more modern, more practical home can cost less to heat as well – while still providing plenty of room for visitors.

TWO: There’s good old location, location, location to think of. If family and friends have moved away over the years, then you might enjoy life more if you followed them. Why just see your children and grandchildren a few times a year when you could live closer and play a real role in their lives? And why not follow your other dreams as well? Theatre lovers could get a practical pied à terre in town as well as a new home in the country for the price of their old family home. Or

have you ever wanted to look out over mountains or the sea? Retirement is not too late to get the view you’ve always wanted.

THREE: Downsizing can help release a lot of

useful equity. Some say traditional family homes are ‘nest eggs with roses round the door’. But the nest egg may not be easy to crack – and equity release schemes are complex financial instruments. Downsizing can make a huge difference to your quality of life in retirement, as long as you go to www.fscs.org.uk/protected to check your savings are in safe hands. Downsizing could also cut your stress levels if you’ve always dreamed of travelling in retirement. A ‘lock up and leave’ apartment or a home with closer neighbours may be less of a worry when you’re away than a more isolated home in its own grounds.

So what’s the overall verdict in the great ‘downsizing’ debate? It’s that we all have to make our own decisions. Families who discuss all their options probably come up with all sorts of surprising solutions to the property dilemma. The family home may well be the perfect place to be. It can even pay its own way, as we explain in the ‘empty nest’ suggestions on this page. But the beauty of property – and the key theme of this four-page special – is that homeowners get more than bricks and mortar. We get a place to call our own. And that feels great at any age.

■ SIGN UP TO A FILM OR TV COMPANY. They want ‘ordinary’ homes for modern dramas just as much as the next Downton Abbey. But agencies don’t accept everyone and can charge fees. The more parking and empty rooms you have, the more likely you are to earn some money.■ TAKE IN A LODGER. Local universities and colleges can help with the vetting process – and hospitals or other big employers may want temporary homes for relocating staff.■ RENT OUT YOUR DRIVE. If the kids’ cars are gone you might have the space. Commuters or neighbours may need extra parking. Having another car outside can be good for security as well – because it can make your home look occupied, even while you’re away.

WANT TO MAKE YOUR EMPTY NEST PAY?

Absolute Radio presents a not entirely serious look at the important things in life including holidays,

marriage, retirement, university days and more. The third episode of the series airs from 7.30pm and takes a warm and funny look at the home. Comedians and presenters including Justin Moorehouse, Christian O’Connell, Kerry Godliman, Alun Cochrane, Emma Kennedy and Pete Donaldson are asked about their childhood home, what would make their perfect home, what their bad habits are and how they really feel about being asked to remove their shoes when they’re visiting friends.

Home for good

THE BANK OF MUM AND DAD: OPEN FOR BUSINESS

It’s no surprise that more than a third of first-time buyers need to borrow money from their parents before they can stump up a deposit on their new home. But writing a big cheque isn’t the only way to help. Several banks have special schemes that effectively pool a family’s finances together so youngsters can get good mortgages while their parents keep access to their cash. Lloyds and Barclays are the biggest banks to offer these kinds of deals at the moment, while a selection of small building societies, including Bath, Market Harborough and National Counties, have similar schemes available.While they may not advertise the fact, many other lenders will look more favourably on a first-time buyer’s application if their parents agree to act as a guarantor on it. Ask for details – and be aware of the exact repercussions if your child hits hard times and defaults on the loan.

A DESIGN FOR LIFE

Retirement is a great time to get the view you’ve always wanted!

NEW HORIZONS

in partnership with

Everyone wants to live in the perfect home when they retire – here are some suggestions for how to make that dream come true

IN PARTNERSHIP WITH THE FINANCIAL SERVICES COMPENSATION SCHEME

your home

‘I do mean it when I say “make yourself at home”. I mean,

don’t use my toothbrush, but you can definitely relax’

KERRY GODLIMAN