Our Five Top Tips for First-time Buyers

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We’re here to guide you through the first-time buyer process. Thinking about getting on to the property ladder? There are several factors to take into consideration. That’s why we’ve put together five of our top tips to help you prepare in advance.

• Tip #1 Start building a deposit. To buy your first home, you need to start saving for a deposit. Your mortgage deposit will usually need to be a minimum of 5% of the value of the property you wish to buy. For instance, if you’re looking at a property costing £200,000, you will need a deposit value of at least £10,000.

• Tip #2 Check your credit score. When it comes to borrowing from a lender, ideally, before looking for a property, ensure that your credit score is healthy. Lenders want to see that you are a reliable borrower, so it helps to have a good credit score. You can check your score online.

• Tip #3 Understand the additional costs that come with being a homeowner. When it comes to buying your first home, you’ll find that it involves many different costs you need to consider, including running the house, service charges, maintenance and furnishing your property. Take into account all these additional items when saving for your deposit; that way, you give yourself the best shot at a smooth process.

• Tip #4 Find out how much you can borrow. Lenders look into several things when deciding how much a person/couple can borrow. For instance, your income will be the main factor to consider. Additionally, they look into debt repayments, grocery costs, leisure spending and regular bills. They will also want to see payslips and recent bank statements to support your application. It’s a good idea to look at your current account before applying, is there anything you could cancel or pay off in advance?

• Tip #5 Can the government help. Have you looked at alternative routes for help getting onto the property ladder, such as shared ownership (buying with a partner) or taking advantage of government-backed schemes? The new 95% mortgage scheme came into force as of 19th of April 2021, which offers first-time buyers and current homeowners a chance to secure a mortgage with a deposit of just 5% on houses up to the value of £600,000 (STT). To find out more, check out GOV.UK

Remember, from the moment you find the property right for you, McSherry Halliday can help. We’re here for you; come rain or shine.

Are you a first-time buyer looking for help with the legal side of purchasing a home? Get in touch with us today, and our dedicated team can help guide you through a seamless process.