Getting on the property ladder for the first time can involve an intimidating process. Without any experience with the buying process, you might find yourself feeling uncertain – or even stumbling into costly mistakes.
Let’s run through a few essential tips that will help you avoid unnecessary stress and expense, and help you to navigate this pivotal chapter in your life.
Assess Your Financial Readiness
Before committing to a purchase as significant as this, you’ll want an idea of the strength of your finances. How much are you bringing in each month, and what are you spending your money on? This information, along with your credit score, will help you to determine exactly how much you can afford to put down in a deposit, and how large your monthly mortgage payments should be.
You can use simple tools like Money Helper’s mortgage repayment calculator to establish exactly how much you can afford to pay, and whether things like changes in the rate of interest might affect your financial life in the future.
Getting a home insurance policy in place is also essential. It will ensure that your possessions are protected against things like theft and that you won’t owe your mortgage provider for the value of the property if it should be irreparably damaged. In most cases, you’ll need insurance to get a mortgage.
Explore Government Schemes and Incentives
There are a number of government schemes that might help you to put a foot on the property ladder. For example, first-time buyers are exempt from stamp duty below a certain threshold. This will be £425,000 until April 2025, when it will drop to £300,000.
Other programmes offer more direct benefits. For example, the First Homes scheme allows first-time buyers in England to enjoy a discount of up to 50% on certain kinds of properties in the local area.
Until June 2025, properties that cost less than £600,000 will be available with just a 5% deposit, thanks to the government’s Mortgage Guarantee Scheme. However, this isn’t a guarantee of a good mortgage on favourable terms.
Prepare for Additional Costs
As your move nears completion, you will be made to pay a range of extra fees. Surveyors, conveyancing solicitors, and removal professionals will all demand a fee. The best way to tackle these costs is to anticipate and budget for them. You might also benefit from financial help from your friends and family members.
Understand the Home Buying Process
For your purchase to be legally binding, it will need to go through a certain process. Understanding what’s required along the way is essential. A good solicitor will be able to talk you through what’s involved and ensure that you don’t run into avoidable snags along the way.
