If you want to know how to get the best deals for first time home buyers then check out our top tips! Buying a home for the first time can be a daunting experience, but as a first-time buyer there is a lot of advice available from numerous sources, along with great incentives and packages on new build homes and developments especially for first-time buyers.
Our top tips getting the best deals for first time home buyers include:-
- Seek out good advice; make sure you get independent and professional financial advice from the sources available before committing to purchase a new home or taking out a mortgage.
- Try your best to save a deposit, the bigger your deposit, the more choices you have on mortgages and interest rates.
- Don’t panic buy – make sure it is the right decision and time for you to buy.
- Check out the Government’s Help To Buy Scheme which can enable you to buy a home with as little as a 5% deposit.
- Consider buying with a family member or friend, many mortgage companies offer special mortgages for individuals buying together and many developers are now building apartments suitable for sharing (i.e. with two same sized en suite bedrooms).
- Consider the Government’s Shared Ownership Scheme (i.e. part buy/part rent).
- Make sure you know the current stamp duty thresholds and how much you would have to pay on the property if it is above the threshold.
- Don’t forget that along with costs such as stamp duty and legal fees, there are also hidden costs to take into account (i.e. mortgage application costs, potential ground rent and maintenance/service charges) which can bump up your monthly expenses – do your research and make sure you have all the facts and figures you need.
- Try to avoid borrowing a bridging loan or on a credit card, the monthly interest on such loans combined with your actual mortgage repayments could be well over your budget! Also before your mortgage is agreed, you have to declare the loan with all monthly expenditure on your mortgage application, this may cut the amount the mortgage lenders will let you borrow. If you don’t have a deposit, speak to a mortgage advisor about other mortgage options that may be available – although again, these may be at a much higher interest rate than if you had an adequate deposit.
- Never borrow more than you can afford, if mortgage interest rates go up or your work situation changes for instance, you may not be able to afford your monthly repayments. Online mortgage calculators are helpful as they can give you a good idea of how much you would have to pay monthly at different interest rates, although you would need to confirm exact payments with a mortgage adviser.
- One of the most effective ways to find the best deals for first time home buyers is to make the most of the Property Incentives available to help first time buyers!