Buying a first home can seem overwhelming; between finding a home, applying for a mortgage, and making an offer, there’s a lot to consider. Professionals within the housing market – including Sam Najafi, property writer – believe that preparation is key to getting on the property ladder.
Start Saving Early
The English Housing Survey for 2017-18 showed that whilst the average deposit for a first home had fallen by nearly £4,000, it still stands at close to £45,000, which can seem unattainable for first time buyers. To combat this problem, first time buyers should start saving as early as possible.
There are also a range of products available on the market that can help; for example, saving with a Lifetime or Help to Buy ISA entitles first time buyers to a 25% bonus from the government.
Speak to a Mortgage Advisor
Before starting to look for a home, take the time to speak to a mortgage advisor. An advisor will be able to look at household income, debts, expenses and deposits, and work out how much can be borrowed. Taking this step first will mean that first time buyers can be realistic about their property search and may be able to get a mortgage offer in principle too.
On top of a mortgage, buying a home can attract other fees and expenses. Find out more about these by taking a look at the embedded PDF.
Research Schemes for First Time Buyers
Today, there are a variety of schemes available that can help first time buyers, including ISAs, equity loans, and shared ownership to name just a few. Take the time to research these schemes before applying for a mortgage or looking for a home.
The Lifetime ISA, for example, can be opened by anyone between the ages of 18 and 39. Up to £4,000 a year can be saved in this ISA, and the government will add 25% to the pot. This money could be put towards a house deposit or saved towards retirement.
Shared ownership is a scheme in which buyers purchase part of a property and pay rent on the remaining percentage. Over time, owners can gradually buy a greater share of the property.