Buying your first home is a big step but getting the keys to your very own home is an exciting moment that makes the sometimes trying process to get there all the more worthwhile. However, for many first time buyers, rising property prices and the high deposits required can make it seem like an impossible task, but no one should give up yet! -
Despite the average size of deposit for a first time home rising to what can seem like unattainable levels there are ways to save to maximise your chances of finally getting on the property ladder.
One such way is the help- to-buy scheme you need just a 5% deposit of your own and the government chips in with 20% for the first 5 years, this is designed to get the property market moving.
You could also Look for incentives and special deals as Some developers have created incentives to help out first time buyers such as free legal fees or cashback on completion or eeeeeven a contribution towards a deposit.
Other first time buyers go to the bank of mum and dad for their deposit and this does seem a growing tend as the age of the average first time buyer is now around 30.
Use a mortgage calculator to work out a realistic amount you can repay per month, remembering that a mortgage is around 3.5 times annual income. From here you can work out how much deposit you will need and calculate how much you will need to save over a certain period of time.
Prepare to and Look at your income and outgoings and list all the essentials you cant avoid or reduce,
Could you save money by Cutting back where you can without starving or goimg without and allowing yourself some perks means youre more likely to stay on track.
Some First time buyers move back in with their parents to save money which really helps when saving towards a big deposit.
Did you know that the average income you need today for a starter home is around £40,000 which is why many are joing forces with other family members and pooling their resources. Buying with a partner,friend or family member can present its own problems and a good solicitor should be consulted before deciding on which way to go.
Buying a house for the first time can be daunting and it is a massive investment, getting it just ever so slightly wrong can be costly.
Unless you are lucky enough to have big savings or rich parents, chances are you're going to have to get a mortgage. a mortgage is just a loan for buying a house.
It's secured against the property which means if you can't meet the repayments the lender may repossess and sell it to get their money back.
The better you understand mortgages and everything to do with them, the better you will be to get the very best deal.
As always the most important thing to ask yourself is "can i afford the monthly repayments"
"You need to consider all of your other monthly outgoings and be sure that you could still meet your payments if interest rates rise or your circumstances change."
You will need to use a solicitor to take care of all the conveyancing and they will also check for any planning or local issues that may affect the property's value.
Again shop around for legal fee quotes as these can really vary as some solicitors don't like conveyancing and others rely on it as a main source of income.
the whole process should be fun but it can be stressful at times and don't expect things to be done over night it can take several months for the transaction to be completed due to the nature of our outdated system and the length of chain involved.
The other potential problem could be when the survey showed up some problems. You may have to go back and re-negotiate the price or pull out all together.
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