First Time Buyer Guide To Getting On The Property Ladder


Buying a home is likely to be the biggest decision of your life and before you commit to buying a property for the first time, you need to make sure that it makes financial and emotional sense. This means you should give the process a lot of thought before moving forward and you should look to compare the costs of renting and buying.

Once you have decided that you want to buy property, the first important step is to save a deposit.

Here are some top tips by the top estate agents in Shoreditch:

Save for a deposit
The more money you have put aside for a deposit, the more attractive mortgage rate you will receive, so it makes sense to save as much as you can. You will find that some mortgage lenders will require you to provide at least 5% of the property cost as a deposit but don’t be shocked to see some lenders ask for 20%. If you can save 25% of the total cost of a property, you’ll find that you will receive great mortgage offers that will allow you to pay a low amount every month on your mortgage payments.

Of course, this is easier said than done and statistics provided by Shelter suggest that young families have to save for 12 years to save up for a 20% deposit. For families looking to buy in London, the time period can reach 26 years.

There are a number of Help To Buy schemes provided by the government, including a Help To Buy ISA so be sure to look for these options when saving money.

Look for the most suitable mortgage
Having a deposit in place provides you with a good starting point for finding the best mortgage. You should look to do as much research as possible on what mortgages are available and if there are lenders who are happy to provide support for first time buyers. It is possible to hire a mortgage adviser for guidance but this will cost you. Of course, it may be that their information will save you money in the long run, making it a worthwhile outlay in the short term, but when you are looking to save as much money as you can, you will need to weigh up every option and level of expenditure.

You will need to provide proof of income to your mortgage supplier, and you will be asked to show your outlays and expenditure. This means you will need to provide bank statements and payslips to any mortgage provider you apply with.

It is important to obtain an agreement in principle from your mortgage provider as this will make the process easier when it comes to buying a property. This is not a guarantee of an offer but it will indicate that you are serious about buying property.

Be aware of other costs
When buying your first home, you may think that the purchase price of the property is the only expenditure to focus on, but this isn’t the case. You may need to pay stamp duty on your purchase, with the current threshold standing at £125,000, so any purchase above this price will incur a cost. There will also be land registry fees and a number of legal fees, so it is vital that you have every item of expenditure detailed so you can properly budget for the purchase. Other costs can include a mortgage agreement fee, a valuation fee, conveyancing costs, surveys and even the cost of moving itself, such as hiring a removal company.

You have to find a property
As there is so much focus on putting the finance into place, it can be easy to overlook that finding the right home is vital. You need to ask yourself what you are looking for when it comes to property. Is the location the most important aspect or do you need space and rooms as opposed to a location. Knowing the key reasons why you are looking to move and what you need from a new home will be an ideal starting point.

You should also be prepared to ask questions about any property you see and take the time to find out more about the property and area.  You will also want to ensure you know everything that is included in the sale.

Finding a property can be difficult so trust your Shoreditch estate agents; Nelsons to find you your dream property.

Make an offer
When you have found your ideal home, you should instruct your Shoreditch estate agent to place an offer with the vendor. You may have to show proof that you have a mortgage in place, which is where the agreement comes in handy.
When your offer is accepted, it is time to formally apply for the mortgage and arrange for surveys to be carried out. At this stage, your solicitor should be taking care of most things, including the exchanging of contracts which conclude the property purchase.