Help for First time buyers

BEING a First time buyer and looking to buy a house can appear to be very daunting, but with the right preparation and advice at hand, it can lead to a very rewarding experience. There are steps that can be taken in order to be ready for when you see that perfect property and you can take that one step closer to making it yours.

Knowing what your budget is should be the first thing you look into. Using various tools online like mortgage guides and calculators will allow you to get a general idea of what you can afford. The specifics of actually getting a mortgage and the more rigorous checks and criteria that are applicable do come into play further down the line, so being prepared as early as possible will make life easier. Speaking to an independent financial advisor should give you all the information you need to know about what your budget is. Some financial advisors will make an initial charge, however our in house advisor can offer free advice and help you decide what is best to suit your needs whilst also getting the best deal available. Some advisors are not independent, meaning they may only be limited to a certain range of mortgage deals on the market. Being independent, our advisor has access to a wide range of mortgage options and may even be able to beat deals offered directly to you from banks themselves.

Having a good sized deposit helps, right? Well it doesn’t have to just be you that adds to it! Setting up a Help to buy ISA will allow a deposit of up to £12,000, saved over the course of five years, become £15,000 towards your home due to the government 25 per cent bonus top up on offer. Whether you want to save only a minimum of £1,600 or the maximum amount of £12,000, there is gain to be found from this government backed scheme. A new initiative is also commencing in April 2017 which is similar to the Help to Buy, known as a Lifetime ISA. Working in a similar fashion, money can be saved in this special ISA from a minimum age of 18 which the government will contribute 25 per cent of money into the account, towards a deposit. It must be noted though that the government top up is paid after completion so whilst it can’t be used to get a bigger deposit, it will help towards your first home. This doesn’t just have to be for one couple, two separate individuals can reap the benefits granting twice the reward, as long as both are first time buyers.

If purchasing a new build property, the Help to Buy Equity Loan may be of use. If looking to buy a property up to the value of £600,000, you may only need a deposit of five per cent with the rest being backed by a government secured loan. As long as the house builder is registered with this scheme, it might open the doors to the potential of a new home which may not be possible without it. There are some requirements which need to be met and other payments which need to be understood, but this is a great opportunity to get onto the ladder with a home that some can only dream of.

Shared ownership schemes may also be an option. Again, with house builders that are registered, you may be able to purchase and own a home at a percentage of its value. Over time the percentage of the home that is owned can increase and eventually can lead to total ownership of the home itself.

There have been a growing number of options available to first time buyers over recent years. But having sound advice and experienced professionals helping at every step of the way with searching, finding, and dealing with the sale of properties is where we come in. Speaking to Philip Priest, our financial advisor is a great step in knowing what your affordability is, and contacting one of our negotiators can help you to find your next home. Ask for Richard or one of our other experienced staff members and we will be happy to provide any information or help that you may require – your first home is out there and it would be our pleasure to help you find it.