Top 6 Tips for First-time Home Buyers
Buying your first property is a huge milestone for many. But being a first-time buyer has its headaches. There’s a lot that goes into buying a property - from fees to deposits to arranging your mortgage. Not to mention finding the right property for you in the first place!
Evernest properties brings you the top 6 tips for first-time home buyers:
Improve your Credit Score
Your credit score is vital when applying for first-time buyer mortgages. Lenders will always look at your credit score to assess how you have managed your borrowings in the past. Make sure you’ve closed off any used credit card accounts and pay off your credit card bills monthly and on time! Keeping up a good credit score is crucial when it comes to buying a new home and determining how much you’ll be able to borrow from the bank.
Seek Out a Mortgage Advisor
Most of the time in order to buy a property you will have to take out a Mortgage. Mortgages are paid off usually over a period of 25-30 years and the amount you can borrow will depend on your income and credit history mostly. You would generally need to save 5%-20% of the cost for your deposit. There are plenty of affordable housing schemes if coming up with the deposit amount is a little tricky.
3. Get Familiar With Stamp Duty
Stamp Duty is tax charged by the Government when you buy a property or piece of land. Recent Government announcements have made this fee a little easier for first-time buyers. If you are a first time buyer you won't have to pay any stamp duty on properties less than £300,000. If buying property between £300,000 and £500,000 you will pay 5% on everything above the £300,000 threshold. There is no tax relief for properties priced over £500,000.
4. Look Into First Time Buyer Schemes
There is a whole range of government buyer schemes available to help you buy your first properties. Help to buy schemes are well worth looking into - they’re designed to help first-time buyers get onto the property ladder. There are usually two different types - schemes to help get a loan for a new build property, and schemes to help first-time buyers buy a home through ‘shared ownership’. If you need a little extra help in buying your first property be sure to investigate the government schemes available.
5. Get a Mortgage Broker to Help
Enlisting the help of a mortgage provider not only saves you the hassle and confusion of navigating the mortgage process but it could also save you money. First time buyer mortgages can be tricky, but your mortgage provider will be there to help work out the best deal for you - ensuring you the best value for your money.
6. Consider a Bigger Deposit
If you are struggling to borrow enough money one alternative could be considering putting down a larger deposit. That way the amount of money you need to borrow will have been reduced - hopefully increasing your chances of being able to take out a mortgage in the first place.
There you have it! Top 6 tips for first time buyers in your search for your first property. Getting onto the property ladder can be scary but rest assured if you follow the tips above it should be a walk in the park. If you are looking for a team of property experts to help you find that perfect first home - don’t hesitate to contact us!
