First time buyer

Getting your foot on the first rung of the property ladder and buying your first home is an exciting and scary life experience. Which is why it is important to get the right advice from the moment you decide you want to buy.

Having expert advice gives you the peace of mind that you will be less likely to experience property heartbreak on the way. And, with so many different mortgage products to choose from, it’s important to get the solution that best meets your needs now and in the future.

Here are our top tips for first time buyers:

How much can I borrow?‍

We’ve all been there, where we tried to stretch a budget to get something we really want, but it’s important to be realistic when working out how much you can spend on your new home. You want to be comfortable in your new home.

Using a budget planner will help ensure that your mortgage is affordable.

How much deposit will I need to put down?

‍There’s a huge variety of mortgages available for first time buyers which typically start with a minimum of a 5% deposit. Typically, the more deposit you are able to put down, the better your mortgage rate will be.

When choosing a mortgage, we’ll show you which deals you might qualify for based on the size of the deposit you have by looking at what is known as the mortgage ‘loan to value’ (LTV). For example if you are looking to buy a property valued at £100,000 and have a £5,000 deposit you will be looking to borrow 95% of the property value.

Have you considered any extra costs?‍

Every property will come with extra costs, whether it’s new furnishings or a total rewire. When looking at your budget, you should consider how much it will cost you to make your new property a home. You will also need to factor in costs such as conveyancing fees, stamp duty, and hiring a removal company.

Know what to look for when viewing properties‍

It’s always a good idea to take an experienced home buyer along with you for any viewings as they’ll have a better idea of what to look for.

Additionally, it’s a good idea to go and see a property on a number of occasions. What might seem like a lovely quiet neighbourhood in the afternoon on a Tuesday may be very different on a weekend.

Household Budgets‍

It’s also important to factor in household budgets when you are looking for a first home. How much will you need to spend on groceries, utilities, and entertainment such as broadband or streaming services? Also, don’t forget council tax charges and any leasehold or maintenance costs.

Taking out a mortgage is a long term commitment and getting professional advice will help you choose a product that will meet your needs now and in the future.