Buying your first home can stir up a mix of emotions—excitement, joy, and often, a bit of anxiety too. While the process can feel overwhelming or confusing, with the right information, you can navigate it smoothly and make informed choices.
Here are five essential tips to help get you started on the property ladder.
1. Confirm Your Affordability
Before you dive in, it’s crucial to establish your budget and ensure you can afford your desired property. Generally, you’ll need a 10% deposit – although, depending on your circumstances, this can range from 5% to 20% of the property price.
When it comes to borrowing from lenders, a few factors will influence your mortgage eligibility, including the size of your deposit, your income and your credit score.
Improving your credit score before applying for a mortgage can increase your chances of approval.
Here are a few steps to consider:
- Close unused credit card accounts.
- Ensure you make timely debt repayments.
- If you have no borrowing history, consider getting a credit card and paying off the balance monthly to demonstrate responsible borrowing.
Lenders will also evaluate your ability to meet mortgage payments if interest rates rise or your financial situation changes. Don’t forget to factor in additional expenses like conveyancing fees, stamp duty, surveys, moving costs and day-to-day living costs (utilities, groceries, etc.).
2. Explore Government Schemes
As a first-time buyer, you can take advantage of government schemes designed to support your journey onto the property ladder. One popular option is the Lifetime ISA, which provides a tax-free boost of up to £1,000 per year toward your home purchase.
Another option is Shared Ownership, where you buy a share of a property from a Housing Association and pay rent on the portion you don’t own.
These schemes are tailored to help first-time buyers, so make sure to research and take full advantage of them where possible.
3. Consider Buying with Friends or Family
Another option to simplify the home-buying process is to purchase a property with friends or family. Pooling resources can greatly reduce the cost of the mortgage and might even allow you to afford a larger home by combining deposits and incomes.
If you decide to buy with someone else, it’s important to consider how the ownership will be divided, particularly if one person contributes a larger portion of the deposit. You can choose to own the property as either tenants in common or joint tenants.
As tenants in common, the ownership can be split in any proportion, and your share can be passed on to someone else, such as a family member, after your death. As joint tenants, however, your share automatically passes to the other co-owner in the event of your death.
4. Seek Professional Assistance
To ensure the home-buying process goes smoothly, it’s essential to seek professional guidance, especially if you’re unfamiliar with the complexities involved.
Estate agents can assist you in finding properties that match your requirements, negotiate with sellers and guide you through each step of the process.
Consulting a mortgage broker like Your Mortgage People is also crucial. We can help you find the most favourable mortgage rates and terms for your situation.
We’ll also work with legal teams to handle the necessary legalities, ensuring that all required checks are completed and that the documentation is properly handled – meaning you can move forward with confidence.
You can fill out an enquiry with us by clicking here.
5. Take Your Time
Lastly, it’s important not to rush the home-buying process. Purchasing a home is a major decision, so take your time and avoid jumping at the first property that catches your eye.
Visit multiple properties and carefully weigh the pros and cons of each. Pay attention to factors like dampness, neighbourhood quality, room sizes, noise levels, pollution, electrical systems, garden space, wall cracks, bathroom leaks, parking availability, drainage, security and the general condition of the property.
A checklist like this can help you identify potential issues and determine if the property is right for you.
Remember, this will be your home, so it’s crucial to ensure it meets your needs.
Want to know more about the process? Why not read our FAQs section to start familiarising yourself with common mortgage questiosns.
