1st Time Buyer Mortgage
Buying your first house may be one of the most daunting shopping trips you’ll ever go on, and with an average first time house price of £100,000, will most likely be one of the most expensive.
Getting on the housing ladder has become increasingly difficult, especially after the recession, and most lenders require a substantial deposit that is typically between 20% and 25%.
Whilst some lenders and government schemes will help with a deposit, savers will still need at least 5% of the house price, which in the case of an average first home can still be up to £5,000.
Keep an eye out for shared equity schemes, interest free loans that you can put towards your deposit, and the new government scheme announced in the 2011 Buget that is designed to help first time buyers make their way onto the housing ladder.
Tips for buying your first home.
- Buy at least a two bedroom property if you can. The number of people who take in lodgers to help pay the mortgage has increased tenfold recently, and the number of people who need a room to rent as they can’t afford their own home is also on the up.
- Consider costs before you buy. Paying the mortgage is only half of the battle once you own the house. Repairs, council tax, insurance, life cover, and gas, water and electricity bills add up – and that’s before you’ve paid for food and general living costs.
Before looking at homes, it is helpful to find out how much you can borrow. Speaking to your bank will give you an idea, but every lender has slightly different criteria. Buying with someone else who earns will give you more spending power, and buying as a pair will hopefully mean you can save more in the first place.
Be aware that other costs when moving in, like legal fees and sometimes stamp duty, can also eat into your budget.