Deposit
Becoming a homeowner is naturally an expensive affair, so it’s vital to have money in the bank for a deposit. The minimum deposit for first-time buyers is 5% of the property value, but many choose to save for longer and put a greater sum of money down in order to give them the best rates from mortgage lenders.
Stamp duty
While the figures are subject to change, the Stamp Duty tax is different for first-time buyers. Asit currently stands, if your property costs less than £425,000, you won’t have to pay any tax in the purchase. If the property exceeds £425,000, there are variable tax rates that are important to consider when planning your finances.
Additional fees
In the journey of purchasing a property, there are costs that can easily be overlooked. Don’t forget to consider the payment of solicitors, surveyors and agents along the way.
Mortgages
Speak to your bank, building society and mortgage advisors to understand how much money you have available to borrow: these professionals will establish your personal circumstances such as salary, outgoings and credit history and secure you an Agreement in Principle (AIP).This document is beneficial to narrow down a property search to homes within your price range, which you can use to make realistic offers—estate agents and sellers will appreciate buyers with the genuine means to follow through with a purchase.
Property search
The hunt for your first home begins! Consider all the essential factors, from the number of bedrooms to proximity to schools and work. Call on the expertise of your sales agent here—they’ll know each neighbourhood like the back of their hand, as well as offering advice about the property’s architecture and maintenance.
Viewings
First impressions count, so it’s often an idea to walk or drive by the property to gauge your initial feeling about the place. Have a list of questions prepared for the viewing and be as inquisitive as you’d like: purchasing a home is a big deal, and you want to make sure you know what is in working order, if there’s anything that might need fixing, how much bills would be and what your neighbours are like.
Making an offer
Once you’ve found the place you’re ready to call home, it’s time to put in an offer. In certain circumstances, the price can be negotiated and first-time buyers are often in a more favourable position to do so–as they don’t have an outstanding property to sell and they can prove a pre-arranged mortgage offer.
Moving in
Organisation is key. Make sure to inform your current utilities companies that you’ll be moving homes, as well as cancelling ongoing delivery subscriptions and submitting your final meter readings. Then pick a moving date, arrange your removals and make an inventory of all your possessions. On the day, it can be sensible to create your ‘emergency kit’ of essential items—cleaning supplies, linen and loo roll—as these are the things you’ll want to use when you get to your new place. Scout out your nearest takeaway too, for that all-important first dinner in your new home.
First-time buyers, we’re here for you every step of the way. Begin your property search with our team of experienced professionals—we look forward to finding your new home, together.
