Our guide outlines some key information that will help you on your journey to owning your first home.
As a first time buyer, taking your first step onto the property ladder can be daunting, there’s so many things to think about when your considering to take your first step onto the property ladder but we can make things simpler for you.
We hope this guide gives you some of the key information you need to help you on your journey but don’t worry we’re here to help you through this just send us a message and we’ll get in touch to help you into your new home.
A simple guide for first time buyers
We’ll go through a summary of the key things you need to know about owning your own home, however you can can also download our more detailed guide here.
Your Deposit
One of the first things you need to do is save for a deposit. Its possible to get a mortgage with just 5% deposit but the higher your deposit the more likely you’ll be able to get a better interest rate.
If your looking at a property valued at £200,000 with a 5% deposit you’ll need to save £10,000. This means you will need to borrow £190,000. However if you can save more then we’ll be able to look at a wider and cheaper range of products for you.
Some common mortgage types
Affordable home-buyer schemes to get you on to the property ladder
We have a dedicated section that you can find here for Help to Buy schemes where we cover this in detail and also information on schemes such as Guarantor Mortgages that can help you make your first purchase.
These schemes are great to help you get started if you meet the criteria but they often come with conditions that you and your family will need to consider if you choose to go down this route.
How much can you borrow?
One of the most important things that we suggest before taking your first steps towards buying your first home is to make sure you can afford the payments not just not but also if things (interest rates) change in the future.
We can help you work out your budget and undertake affordability checks to see how much you can borrow and what your monthly payments could be.
Mortgage Lenders will check your income and expenses and “stress test” this against increases in interest rates or change in circumstances such as starting a family and will undertake credit checks.
Don’t worry this all sounds quite daunting and stressful but The Mortgage Stop will guide you through each step of the process.
Don’t forget your other costs as well!
Its not just your deposit you need to plan for when buying your first home. There are other costs that you need to consider when looking to purchase a property:
- Solicitor / Conveyancing Costs
- Nearly all mortgage’s will require you to under take a survey
- Building Insurance (and we recommend contents insurance)
- Mortgage arrangement fees charged by most lenders
- Removal costs
- Don’t forget to save money for furnishings!
- Stamp Duty if the value of your property is above certain thresholds
Your home may be repossessed if you do not keep up repayments on your mortgage