Tips for First Time Home Buyers

November 6th, 2023
Tips for First Time Home Buyers

Are you a First Time Home Buyer? – Check the Most Helpful Tips to get Your Dream House

All of us have an idea about our dream house and often want the place to be comfortable, cosy and relaxing. We have the mental picture of the design and the feel of the home, but buying it may seem to be an overwhelming task. Without a doubt, we would agree to the fact that buying a home demands a good level of monetary security. First time buyers may get perplexed and confused about the ways to manage finances for a home of their wishes.

The buying a house process needs to be handled with a rational mind as you need to manage the deposit amount, choose a mortgage deal and negotiate the lowest possible price for your home. This may sound like a really difficult task, but hundreds of Britons manage to turn down the obstacles coming in the way of buying their first home and so can you. Just follow our simple and effective tips to make the correct choice of buying your first home and get acquainted with the answers to the familiar question of how to buy a house in the UK.

Helpful tips for first time home buyers:

Manage a big deposit: This is the key to make big savings on mortgage interest rates. Most of the lenders require a deposit of at least 10% of the value of the house. They charge higher interest rates for people who have less than 25% of the value of the property. This means you should arrange for the biggest deposit possible so as to reduce interest rates. If you can pay 25% of the property value as deposit then interest rates would be considerably lower, it is even worth saving for a larger deposit first.

Gauge the amount that needs to be borrowed: This is very important as overstretching yourself financially would result in deep frustration and anxiety. That is why, it is better to calculate the amount of repayment based on your salary, monthly expenses and current savings. For this, you can use a mortgage calculator that calculates the exact amount to be repaid on a monthly basis.

Take help from government schemes: You can rely on the government’s support for buying your first time home. The UK government has launched many schemes that facilitate home buyers in order to reduce their financial burden. You can leverage schemes like Help to Buy, First Steps London, Starter Home Scheme and many more. Some of the schemes also depend on the area in which you live. Check out with the administrative body of your area to find the schemes offered by them.

Choose the best mortgage: You should shop around and choose a mortgage that weighs light on your pocket. As an example, lenders like Lloyds TSB offer mortgages designed especially for the first time buyers. This may require a friend or relative to invest their savings into the account linked to the mortgage. You need to find methods to choose the best mortgage for yourself. Some of the mortgages would require you to pay the arrangement fees which could be around £2,500. Again, mortgages with a worth of more than £125,000 entail you to pay the stamp duty. Therefore, choose the mortgage wisely to reduce shelling out your hard earned money.

Check out the market: To find the house that suits all your requirements and fits into your budget, you need to have a look at a lot of houses. First hand research is important in buying a house and getting in touch with different estate agents and checking out properties will help you make the best selection.

Make an offer: Once you find the house of your choice, just make an offer, but, before that do investigate on the sold houses the area surrounding it. After all, you do not want to pay higher than what it deserves. You should also know the life of the house and how long has it been in the market. Once your offer gets accepted, you would need a solicitor or licensed conveyancer for legal proceedings. The lawyer’s fees and legal transactions would cost you somewhere around £500 to £750.

Arrange a surveyor: In the next few days, you need to arrange for a surveyor who can decide the exact value of the property. Normally, the lender calls for the surveyor but its good if you arrange your survey so as to know any issues with the property. If the surveyor points out some big issues, then it is always better to leave that property and start searching for another one. For small, little stuff you can negotiate with the seller for reducing the prices.

Always buy insurance for your property: It is advisable to take building insurance for your property. It is good for your investment and for your mortgage lender. You need to insure the property for the rebuild price and not the purchase price.

That’s it! Once you are done with all this, it’s time to move in. The ecstasy of buying your first home is unparalleled! All the best!

If you want to know more about mortgages and home loans, do check in our website or you can also call us on 08008807656.

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