At David Robinson Estates we have worked with all spectrums of the buying community. However, there is nothing quite like helping a first time buyer achieve their initial step onto the property ladder. We understand that it can be quite a daunting prospect, but our friendly team are here to help make this process easier and take out some of the jargon and un-needed complexity that comes with purchasing your first home.
Our top tips guide below provides an overview of the key questions that we are asked on a daily basis by first time buyers.
Deposit
This is something that always crops up, but it’s crucial that you’ve got it sorted before you can start visiting houses that you might be interested in.
As a guide, you should be looking at saving between 5% - 20% of the cost of the home that you’re looking to purchase. It’s therefore beneficial if you scope out the market to get a rough idea of a price range that is realistic and then use that as a benchmark for your savings. Having a larger deposit to put down will help you when it comes to getting your mortgage as a 20% deposit will invariably mean that the bank won’t have to lend as much money compared to a 5% deposit. Having a larger deposit will also give you better access to a variety of the cheapest mortgage deals on the market.
Additional Costs
Buying a house is one of the biggest commitments you will make during your life and naturally there are costs in addition of your mortgage payments that you need to consider. The most common costs that you should bear in mind are:
Solicitor’s fee
Survey costs
Insurance (buildings and contents)
Decorating and furnishing
Removal company
Mortgage advisor
Valuation fees
Stamp Duty (Land and buildings Transaction Tax in Scotland, or Land Transaction Tax in Wales). First-time-buyers will pay no Stamp Duty on the first £300,000 for properties worth up to £500,000.
Mortgage
Actually being accepted for your mortgage is one of the major hurdles you need to overcome to be in a position to purchase your first house. Luckily enough we already have a comprehensive guide on how you can secure the best mortgage for you! Check it out by clicking here
Affordability
It’s crucial that you can afford the repayments on your mortgage and therefore there’s a pretty strict set of tests that banks apply to ensure that you’re able to keep up with your payments. However, you can carry out a number of these checks on your own by working out how much you earn, and using an online calculator to work out roughly what your mortgage payments might be.
