First time buyers: how to prepare for buying your first home

April 29, 2022
first time buyer couple

Buying your first home is an exciting time! There’s lots to learn to make sure you’re as prepared as possible. And luckily, that’s where we can step in to help. Don’t forget to read our Guide for First Time Buyers too.

Here are our top tips to make sure you’re ready to become a homeowner…

Save, save, save!

Usually, you’ll need a minimum of 5% for a deposit, however this may limit the mortgage products that could be available to you. If you’d like more choice when it comes to your mortgage, you’ll need to save a larger deposit.

To help maximise your savings, why not open a Lifetime ISA to boost your deposit? You could get a 25% bonus on your savings of up to £1,000 for free! Lifetime ISA’s are also ideal to set aside money for extra fees, such as insurance, removals, solicitors fees, survey fees and so on.

Don’t skip pre-approval

Getting pre-approved for a mortgage or a ‘Mortgage in Principle’ (MIP) means that the lender has agreed to lend you the money you need to buy a house. Having a Mortgage in Principal when making an offer, shows the seller you’re serious about buying a home.

Boost your credit score

Lenders will look at your personal circumstances during the mortgage application process. This includes your credit score. They’ll see if you have any existing debts, your money history, and if you’re responsible with money.

It’s important to lenders that you can pay your monthly mortgage payments, so it’s best to make sure you have a healthy credit score. Your credit score can be boosted by paying off any existing debts you have, registering on the electoral role and not missing any monthly payments.

Research Help to Buy schemes

There are plenty of schemes available to help you get on the property ladder:

  • Help to Buy Equity Loan Scheme: The Government will lend you up to 20% of the value of the house- or up to 40% if the house is in London. This is the equity loan. You’ll need at least a 5% deposit, and you’ll need to take out a mortgage for the remaining amount. Regional price caps apply to the value of the house you can purchase – up to a maximum of £600,000 in London *
  • Shared Ownership: This involves buying a share of a house, between 10%-75% and paying rent on the rest.
  • Deposit Unlock: The new scheme has been devised between the housebuilding industry and lenders. It’s designed to allow buyers to purchase a new build home from participating home builders with just 5% deposit.

Beat first time buyer anxiety

When it comes to buying a house, it pays to be as organised as possible. Making lists and filling out any paperwork on time, and correctly, can help keep you on track.

And remember, your mortgage adviser is the expert so don’t be afraid to lean on them if you’re feeling worried or anxious about anything.

Get help and advice from a mortgage adviser

Getting the right mortgage for you is what’s most important for us. We listen to your requirements, current financial situation, and personal circumstances by having a simple chat.

Then we make recommendations that put your needs first, as we have access to over 90+ lenders and 12,000 mortgage products in the market.

Once you’ve decided on the mortgage that’s right for you, we’ll deal with the application and paperwork, meaning more time for you! Contact us today and we can help you start the journey to buying your first home!

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