First Time Buyer Help – The First Three Things To Do When You Want To Buy
*This is a collaborative post on first time buyer help
Buying your first property is an exciting but also a scary time. There are a lot of things to think about. And whether you’re going it alone, with friends or family, or with a partner there are a lot of things to consider. This post has some first time buyer help to talk through the initial stages when you want to buy. Before you start looking at houses and putting in offers.
My first property was a shared ownership flat which I bought on my own when I was 22. It was an incredibly exciting time, and looking back I realise how lucky I was to be in the position to do that. After selling the flat and moving back in with my parents myself and my fiance bought our (hopefully) forever home at the start of 2021.
If you need first time buyer help here are three things you need to do.
Start saving for your deposit
Whatever property you’re looking to go for you’ll need to put down a deposit of at least 5%. Although some lenders will ask for 10%. The more deposit you put down the less you’ll need to borrow, and you may get a better rate by doing so. Our mortgage interest rate dropped by us just putting down about £2K more as it meant our deposit went over a certain percentage.
Along with a deposit you’ll need some additional money for solicitor fees, mortgage or survey fees, and stamp duty (if applicable). Working out how much you want (and need) to save is very important. Then you can start working out a savings plan on how long it will take you to put aside. If you’re a first time buyer make sure you look into a Lifetime ISA to get the free government bonus.
In the early stages it’s also worth looking into your credit score and making sure it’s as high as possible. Simple updates like closing old accounts and making sure you’re on the electoral roll can help boost your score. Having a higher score will make you look better to lenders. And it may give you more borrowing options.
If you’re renting and lucky enough to have family close by it might be worth considering moving back home (if that’s an option). You’re likely to save quite a lot of money, and you can use Now storage self storage to store anything you need to keep safe.
First time buyer help- Work out how much you can borrow
In the early stages you can use an online mortgage calculator through somewhere like Habito to work out how much you may be able to borrow. This isn’t a guarantee but it will give you an indication of whether you’ll be able to afford what you’d like to buy. And it may influence how much deposit you need to save. You may even be able to get a mortgage in principle which will help when you start going on viewings.
Once you know how much you can borrow you can look into the government schemes and products which can help you get your foot onto the property ladder. This includes Shared Ownership and the Help to Buy Equity Loan.
Talk to the experts
Before you starting thinking about viewing properties it’s worth speaking to a mortgage advisor. We started our journey off by going to the Independent Mortgage Advice Bureau to talk over our options and get some advice. Going to a mortgage advisor as opposed to a specific lender will give you the biggest range of options. Some advisors do charge, while some offer free advice and take their commission from the lender when you take out a mortgage.
Your mortgage advisor will provide you with first time buyer help and answer any questions you have. They’ll be able to give you more information on the options available to you, the best mortgages out at the moment and much more.
Have you found this first time buyer help useful if you’re looking to buy?
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20 responses to “First Time Buyer Help – The First Three Things To Do When You Want To Buy”
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Rhian Westbury
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We are in the process of buying our first home, so I need all the tips I can get!
That’s so exciting, congrats x
It seems a long time ago since we bought our first place, it was so exciting but nerve wracking too!
The first time I bought a house, I didn’t know there would be so many additional costs. It definitely helps to have a good amount saved and set aside for it.
It’s a minefield when you buy your first place isn’t it x
Buying a home is a very stressful situation. As you indicated, saving for the deposit is one of the most important things one should do. I would also contend that finding a realtor that you’re comfortable with helps too. I was so lucky during my tenure in Washington, DC (USA) to have a realtor that went to bat for myself and my family when it came to the right place to settle in.
Definitely an important one for the US, in the UK we don’t tend to look for realators. If you’re buying you just search for houses on one central place online, they might be with 1 estate agent or 5, but really interesting to know the differences between locations x
When I purchased my first house, I just jumped up one day and went out to look at model houses and placed a deposit on one that same day. There was no thought before that day. I was blessed that every worked out but do suggest that people take thought before hand using tips such as yours.
Wow that’s amazing! Good for you x
These are great tips that will have a big impact on such an important decision. It can be such a scary experience…always good to be prepared!
Great tips for those looking to buy their first home, I was lucky when I started to look for mine as I worked for a Building Society at the time
That must have been so useful to get info from there, I had no clue the first time x
It is important to be prepared like this when buying a home. Buying a house can be so stressful!
We are currently saving for a deposit – as it is something that really does take a lot of time!
It’s so tough but it will be so worth it when you get your own place x
These are great tips! Saving for a deposit first is key – you want to make sure you have the right amount of funds for your dream home so as not to get your hopes up!
So true, houses can sell so quickly you don’t want to miss out as you didn’t have the money saved x
I’m so impressed you got on the property ladder at 22, I was 23 but that was over 20 years ago and I think it was much easier then. Great tips, thanks. Mich x
I did use the shared ownership scheme so that definitely helped. I think as much as anything I was in the right place at the right time x
A lot of good tips. I have taken lots of notes for this.