10 Top Tips for First Time Buyers

10 Top Tips for First Time Buyers

Buying your first home can be a stressful and anxiety inducing project. It really doesn’t have to be, not if your equipped some of the tips below!

1. Affordability

Before you go house hunting, speak to a mortgage adviser about how much you can borrow. There's no point in viewing homes you might not be able to afford and on the converse, you don’t want to be limiting your budget too much when it comes to decisions like schools and amenities. Most agents will require a Decision in Principle before accepting your offer so it’s always handy to speak to an adviser beforehand. A “Decision in Principle” is usually valid from 28 days to 3 months.

2. Government Assistance Schemes

It is always handy to research into schemes that are designed to assist first time buyers. From Shared Ownership to Help to Buy mortgages, they have great benefits such as low deposit support, but can also have drawbacks too. Check out our guide's on Help to Buy and Shared Ownership mortgages.

3. Higher Deposits

We know it’s easier said than done, sometimes spending a little bit longer saving up can have some great benefits. Typically, the 5%-10% deposit market can be restricted as there's not many lenders who offer low deposit mortgages. Even just an additional 5% deposit can do wonders for your cost and affordability. By going down the 15% or more deposit route, there’s a lot more lenders available and also lenders can be more generous when it comes to affordability.

4. Get the property taken off the market

After giving your agent your solicitors details and the offer being accepted, if the agent has not already, request the property to be taken off the market so it’s no longer advertised online. Always remember, the agent is acting in the best interest of the vendor/seller, so if a higher offer is received after your offer is accepted then the agent is required to present that offer to the vendor, which puts your purchase at risk.

5. Credit Score

There’s nothing worse than being surprised about something you weren’t aware If you haven’t already started monitoring your credit history, it’s a good idea to start now to avoid any unwelcome surprises.

6. Independent Survey

Buying a home is one of the most expensive things you will do in your lifetime. A home with structural defects can be a costly in the long term. Most mortgage lenders will want to carry out a valuation but a basic valuation can be limited and tends to focus on structural integrity and its value. A Homebuyers Survey or Full Structural Survey are more intrusive and detailed. This means you’ll be made aware of defects which you won’t come to know about with a basic survey.

7. Fees

Ensure you’re aware of the upfront fees such as broker fees, valuation fees, legal fees and even your stamp duty cost. If you’ve not budgeted for these expenses, you may end up having to sacrifice some furniture when you move! Be extra careful to not eat into your deposit funds for the transaction. A good mortgage adviser and solicitor will ensure you understand the related costs to buying your first home so don’t fret too much.

8. Agreement in Principles

This is effectively a credit check with a lender confirming your ability to borrow. Most property agents require proof of your ability to purchase a home before they present your offer to the seller of the property, so speak to a mortgage adviser before you start viewing properties as this will allow you to get a better understanding of your budget. They’ll be able to recommend a lender and produce you an DIP certificate. An adviser will usually do this free of any cost as its not yet a full application being made to a lender.

9. Leasehold Properties

There’s been some controversy in the mortgage market and property law in recent years. Ground rent and Service charge on many new build developments can be onerous and expensive, with some developers putting in clauses into the lease allowing the costs to inflate over the years significantly.

Quite simply, lenders don’t lend on properties where these inflating costs are within the lease as this tends to impact the property’s re-saleability.

Every developer can be different, so this doesn’t apply to all leasehold properties but ensure you’re aware of the costs surrounding ground rent and service charge before you proceed.

10. Mortgage Protection

No one can see your future but there's ways to protect yourself. Not every individual needs protection as everyone is unique however we always recommend speaking to an adviser regarding protecting your mortgage. Life has an interesting way of never going to plan and that’s what mortgage protection is for, Don’t put yourself in a position where your home is at risk, take the best possible measures to ensure your family and home is safe and protected.