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First time buyer advice
Should you buy now?
With the government, estate agents and new home builders all trying to persuade you to buy now, it is important not to be pressured into buying without having a clear picture of what price range you can afford. There are a few different factors that come into checking if you can afford a property such as:
- Is your deposit big enough? In the current financial climate it is almost a necessity for you to be able to put at least 10% of the house price in order to try and keep the repayments within reach.
- Do you have additional financial help? A larger portion of first time buyers than ever are now getting help off of their parents or other relatives when looking to purchase their first home. These added contributions to the deposit help to lower the monthly repayments.
- Have you considered the additional costs of the purchase? As well as the deposit there are also a few other fees that you will have to consider, such as stamp duty, legal and removal costs, survey and mortgage arrangement fees, as well as buildings insurance. Make sure you know all this to get a better idea of the true price.
Don't think you can afford to get on the property ladder?
There are many people who think that they will be unable to afford a house with their current wage, but there are also a few solutions that may enable them to get on the property ladder:
- Homeownership Schemes - In England, first-time buyers may be able to take advantage of schemes to help with home purchases. These schemes offer either an equity loan towards the house’s purchase price, with no fees for five years; or shared ownership, where you buy a share of the home and you pay rent on the remaining share. These schemes are usually run by Home Buy agents. Home Buy schemes are open to households which earn £60,000 a year or less.
- New Homes Incentive - Affordable 'starter' homes and first time buyer incentives are nothing new, but due to the current economic climate, developers are upping their game significantly. They are currently offering everything from help with the deposit and mortgage to rent now/buy later schemes; as well as potentially vouchers for food!
- Buying at Auction - Buying a home from auction can provide you with a chance to pick up a bargain. However, it is often a very difficult task and can sometimes leave you worse than you started. If you can, take advice from someone who knows how the auction system works and make sure you do your homework before going to the auction - ensuring you understand what properties you will be looking at and the buying process itself as it is completely different to the normal buying system
What will we do?
We will help you to figure out what is best for you personally. We can work with you, assessing your full financial situation, enabling you to get a clear picture of how much you can afford at the moment and how much you can put down as a deposit.
We have had extensive experience in securing mortgages for our clients and we will be able to help you to do so too. Click here for details.