Top Tips For First Time Buyers
Buying a property is one of the most important and exiting purchases you will make. However, buying a home for the first time can be a very daunting prospect. With hundreds of mortgage products and so many companies competing for your attention, how can you be sure that you’ve made the right decision on that all important first step to home ownership?
Here at Key To mortgages we have access to an extensive range of mortgage products many of which are not available on the high street. We access the whole of the market to ensure you have the right mortgage and will use our years of experience to tailor a product to meet your individual needs.
We offer a professional yet personal service to ensure you are guided through the property buying process as much or as little as you need, ensuring you fully understand the process from initial enquiry right through to the day you move in.
Top tips for first time buyers
Saving for a deposit
The first thing to do if looking to buy your first home is to start saving. Generally you will need a minimum of 5% -10% of the property value. On a home valued at £150,000 this means a minimum deposit of £7,500. The minimum required is 5% however the greater the deposit the less risk you represent to the lender and more products become available.
Make sure you can afford the monthly repayments
As a first time buyer one of the most important questions you need to ask yourself is can I afford to take this step? Can I afford the monthly repayments?
Lenders have very strict rules regarding mortgage affordability and will assess your ability to meet mortgage repayments. They will also stress test affordability to ensure you can afford the mortgage even if interest rates were to rise or your personal circumstances where to change, such as possible redundancy or having children. When applying for your mortgage, you will need details of your outgoings and evidence your income.
Budget for the costs of buying a home
As well as saving for the deposit, it is also important to budget for the cost of buying a home. The main costs associated with buying a home are
- Stamp Duty
- Solicitors fees
- Mortgage arrangement and valuation fees
- Survey costs
- Buildings insurance
- Removal costs
- Costs to furnish your new home
Take someone with you
As a first time buyer looking at properties, there may be numerous details in the properties, which you may not pick up. We recommend you take an experienced home buyer, such as one of your parents, or a home-owning friend with you when looking at a property. You will generally return to look at the property a second time, so don’t worry if you can’t get some to go with you on the first viewing, there is always the chance get some assistance once you have selected a property you like and are arranging a second viewing.
Location, Location, Location
Location is just as important as the property itself. You may want to consider nurseries and school catchment areas if you have or are planning to start a family. Consider the proximity to local amenities such as Doctors, Chemist, Local Shops, Post Office and links to public transport such as train a bus stations. We also recommend trialling the journey to and from work, this will give you a good idea of how long it will take you, the best route, etc. Try to view the property at typically busy times, this will indicate how easy it will be to park and how busy the road gets.
Having arranged the best mortgage for your needs by searching the whole of the market for the best deals, we will also help you to ensure you are able to maintain your mortgage repayments should your circumstances change.