Buying a home for the first time can be both exciting and daunting in equal measure. Most first-time buyers have little to no knowledge or experience with the property market and therefore do not know where to start. We recommend using our mortgage calculator in the UK to work out exactly how much purchasing a home would cost you.
Worse still, conflicting information and advice only stand to further complicate the whole thing.
Getting on the property ladder is never easy, but the process can be simplified with a few common-sense guidelines. From those who know the property purchase process better than most, here are a few helpful pointers all first-time buyers should be aware of:
- There are schemes that could save you a fortune.
First and foremost, it is important to leverage any existing schemes or incentives you may be eligible for. Examples of these include Right to Buy and Help to Buy, which, depending on your circumstances, could save you a small fortune on the market value of your home.
- Establish your budget in meticulous detail.
Working out how much you can afford to borrow means taking into account your current outgoings, your lifestyle, and your financial future. It also means ensuring you leave yourself with a little room to manoeuvre, rather than pushing your finances and your budget to breaking point.
- There are mortgages beyond High Street.
Depending on your requirements and circumstances, you could be better off working with an independent lender away from the High Street. From poor-credit first-time mortgages to competitive Right to Buy mortgage deals and so on, there’s an extensive network of lenders to explore beyond the usual major banks.
- Comparison sites are far from comprehensive.
Carrying out an initial online mortgage comparison can be useful. However, the average online mortgage comparison site is not quite as comprehensive as it appears. If you want to gain access to the best deal in the UK from the most dynamic network of lenders, speak to an independent broker for advice. Before doing so, ensure the initial services they provide are offered 100% free of charge.
- With deposits, bigger is better.
If there is any realistic way of pulling together a larger deposit, do it. Along with simplifying the process of qualifying for a mortgage, bigger deposits also pave the way for better deals. Simply by increasing your deposit from 15% to 20%, you could qualify for a much lower rate of interest and save a small fortune over the life of the loan.
- Interest rates are not everything.
Last but not least, it is vital to remember that the overall costs of a mortgage extend far beyond interest rates alone. You will also need to factor in arrangement fees, administration fees, valuation fees, legal fees, closure fees, and (in some instances) early repayment fees. All of which should be considered carefully when evaluating how much you need to borrow and how much you can comfortably afford.
Whether you are ready to go ahead with a first-time buyer mortgage application or simply considering the available options, we are standing by to take your call. Contact a member of the team at UK Property Finance anytime for more information.