Buying your first home is a daunting prospect, but also an exciting one. It involves a lot of research and information, and we have written this handy guide to help you get started in understanding the process.
First of all, being a first-time buyer means you have never owned a home, or shares in a home, either in the UK or abroad. This will matter if you plan on applying for one of the many government-assisted schemes that may be available to you as a first-time buyer.
blog-4-.jpg300 KB Before applying for your first mortgage, here are some things you will want to have ready:
Save up money for a cash deposit. The more money you have for a deposit, the less you will need to borrow.
Keep an eye on your credit rating and do your best to boost your score.
Speak to a mortgage broker about your finances, and come up with a realistic budget for when you start house hunting.
Save up extra funds for other expenses, such as mortgage fees, stamp duties and building insurance.
Obtain a Mortgage Agreement in Principle from a few possible lenders before you start viewing properties. This is an estimate of what you should be able to afford.
Blog-3.jpg222 KB Now that you have all your finances together, you are ready to start the most exciting part of the process – house hunting! Here is a list of things you will want to make sure of when choosing the right home for you and your family:
Condition: Are the floors, ceilings, walls and roof in a good condition? Are there any exposed wires, and are all the electrical outlets in good working order?
Amenities: Is there off-street parking for your vehicle? A garden for your children or pets? Is there any form of security? How much storage space is there, and is it enough for your needs?
Connectivity: Is there an internet connection, good cell service, a TV connection?
Privacy: Where are your neighbours? Can they see into your property?
Accessibility: Is there rush hour traffic on your street or nearby? Is there public transport close by?
Hindrances: Are there any previous rental contracts in place that may delay your moving in?
blog-2-.jpg157 KB There are a number of schemes available to assist first time buyers in obtaining their homes. Here are the ones we think maybe the most helpful.
The First Homes Scheme may offer you a 30% discount on the value of your intended home. It prioritises army veterans and key workers.
The 95% Mortgage Scheme is available to potential buyers who only have a 5% deposit saved up. It is only available on homes up to the value of £600,000.
The Help to Buy Equity Loan allows first time buyers with a 5% deposit to borrow up to 20% (40% in London) of the property value, interest-free for the first 5 years.
The Shared Ownership Scheme allows the buyer to purchase 25 to 75% of the property, and pay rent on the remaining share.
The Starter Home Scheme assists under-40s in buying new builds.
We hope this information has been helpful, and wish you all the best in the purchase of your first home!
