First Time Buyers Guide
Getting that first foot onto the property ladder isn’t always straightforward.
However we have put together a short guide for First Time Buyers to cover the basics.
Obviously this is general advice. But if you would like advice pertaining to your personal circumstances, then call our Frimley branch 01276 670777 or Basingstoke office 01256 637000 and make an appointment with one of our advisers
1. Your real needs
When you look for your first home you will no doubt have a list of things you really want from it. Finding a property that meets every single one of those requirements is extremely hard, and if not impossible, so you must also grade them as must-haves and would-likes. Be prepared to compromise on the would-likes! Consider all possibilities and research everything fully before committing. Don’t forget non-property related things too, for example such as schools, travel distances to work, friends and relatives, bus routes, train stations, local amenities and medical centres for example.
2. How much can you afford?
One of the biggest financial tasks you will ever face is saving for your mortgage deposit. Remember to budget for all the other associated costs of buying a home, things such as solicitors, surveys, removals and possibly stamp duty.
3. Tips On Getting The Deposit
In 2015 the Government introduced the Help-to-Buy deposit ISA to help people save for their first deposit. They will contribute a lump sum to start and a monthly saving bonus amount. Details can be found on their Help to Buy ISA Guidance notes.
- If you can, get a savings account that restricts your access so you’re not tempted to go on a spending spree. It’s easy to dip into it when something else comes up, which it will.
No more extra luxury items
- Work out how much you could save by cutting out the extras like gym memberships, extra nights out at pubs and restaurants, holidays abroad etc… You’ll be surprised just how much you spend on things when you sit down to think about it. All of that extra can go into your savings pot.
Keep track of your spending
- It’s a good idea to try and keep a list of what you spend, when you spend it and what on. There are plenty of smartphone apps out there to help, or even a basic spreadsheet will do. This helps you to see where you can make savings and helps you focus on the goal. If it helps, allocate yourself a set amount of spending money each month, week or day and give it to yourself in cash every day. Any leftovers can go in a pot for the rest of the period.
- If you have the time, can you take on a part-time or evening job? Anything you can do to hit your target, do it. It’s only for a short while and you’ll be so glad you sacrificed some time. Be sure not to overdo it though.
- Set realistic targets
- Set yourself ‘realistic’ targets to stay focused on that dream. You will make it if you remain dedicated.
Most people cannot afford to buy their home outright from savings and will need a mortgage to fund the purchase. A mortgage is a loan secured on a property. You will be required to put down a deposit and you will need to apply for a mortgage to cover the rest of the purchase price.
You then need to repay the mortgage to the lender. Usually this is done in monthly instalments over the term of the mortgage.
Banks and building societies offer a range of mortgages with different loan amounts and interest rates.
We have access to the whole mortgage market, which unlike individual banks and building societies who may only be able to offer you one or two different rates, we can get the best rates across the country.
Also bear in mind that there are a number of affordable options available when you’re looking for your first mortgage:
Some lenders will offer specific mortgages tailored to first time buyers. Often, they will only require a small deposit.
Help to Buy
Help to Buy is a Government scheme aimed at helping purchasers with limited deposits. You secure as little as a 5% deposit on a property. Find out more about help to buy