Being a First-Time Buyer and taking your first step onto the property ladder is always a big life stage. For many, it is the most expensive purchase we are likely to make. It has also been well documented about how difficult it can be for first time buyers in the current market with house prices rising much quicker than national earnings. However, there is light at the end of the tunnel.
Many First-Time Buyers can help themselves by planning for that first step in to the property market by considering the following points.
Start planning early:
Think about what it is that you want/will need to achieve to be able to move into your first property. Are you seeking to raise funds up to 5% of the deposit and use government support scheme? Maybe you want to raise as big a deposit as possible and use a First-Time Buyer mortgage? Whatever it is, having a clear end goal will help with your planning.
Know what to expect:
Homes are expensive assets. As a First-Time Buyer, you may not be familiar with just how expensive they can be. Do some research of property markets to develop an understanding of how much your ideal property, and ultimately deposit, will be.
Explore help options:
As a First-Time Buyer, there are lots of government backed schemes available to support you in purchasing your first home. Do your research of the scheme available to you and in your area to see if any of them can help you take that first step. The government link below is a good starting point. https://www.ownyourhome.gov.uk/schemes-all/
Have a savings strategy:
To help build your deposit, identify where you can make savings in your current day-to-day spending. You can then use the surplus that you generate this way to put into a savings account – possibly a Help to Buy ISA or Lifetime ISA – which can then begin to build into a good deposit. Remember, you are aiming for that long-term goal.
Budget for the additional buying costs:
Buying a house isn’t just about having the money for a deposit. Alongside this, you will have to fund estate agent fees, legal fees, stamp duty charges etc. that can add up to thousands of pounds. Remember to budget or plan for these also otherwise you will reduce your deposit amount.
Check your credit report:
Checking your credit report is important as it will give you an indication of how likely you are to be accepted for the all-important mortgage. It will also help you to identify where you might be able to improve. Don’t always think no/little credit history is good. Many lenders will see this negatively as they will want to see you have a positive history of repaying loans and credits.
If you would like to receive some advice as a First-Time Buyer, please do not hesitate to contact us to see if we can help.