Are you a first-time buyer wanting to get onto the property ladder but aren’t quite sure when the right time will be? The truth is that the property market is constantly changing. The “right time” will depend heavily on your personal circumstances.
If you are considering buying a home, there are a few things you should consider before taking the next step.
Can you afford the property?
Before you start looking for your home it is important to have a realistic idea of what you can afford. Speaking to a mortgage advisor and obtaining a mortgage in principle will give you an indication of how much a lender may be willing to lend to you based upon your circumstances. Having a mortgage in principle before viewing properties and putting in offers will help you understand your budget and demonstrate to the seller that you are serious about buying. Many agents will ask to see this.
It is important to remember that buying a property involves more than just the initial purchase price. You will need to consider the costs for legal fees, searches, surveys, monthly mortgage repayments and potentially stamp duty if your property purchase price exceeds £300,000. In addition, you should budget for ongoing costs such as council tax, utility bills, buildings and contents insurance and general property maintenance.
Have you got your deposit?
For many first-time buyers, saving the deposit can be one of the biggest challenges. Freedom to Buy is a UK government-backed mortgage guarantee scheme designed to help people buy a home with a 5% deposit, making homeownership more accessible for those struggling to save for a larger deposit.
Additionally, a Lifetime ISA (LISA) can provide eligible first-time buyers with a 25% government bonus on their savings, helping to boost savings towards a first home, subject to rules and limits.
If a family member is helping you with the deposit, this is known as a gifted deposit. Your conveyancer and mortgage lender will require information about where the money has come from and confirmation that it is a genuine gift. Therefore, it is important to mention it early in the process to your conveyancer if you are receiving a gift to avoid delays later.
Are you buying with someone?
If you are purchasing with a partner, friend or family member, it is important to have discussions around how you will own the property and how you will contribute financially towards the deposit, household bills and mortgage repayments. Additionally, it is important to discuss what would happen if one person wishes to sell in the future. Taking the time to agree on this can help avoid misunderstandings later.
Purchasing your first home can feel overwhelming, but with the right advice and preparation, the process will be much smoother.
Think you’re ready to take that step? Call Wilson Browne Solicitors on 0800 088 6004 for all the help you need.
