Buying a house or flat can be a long and stressful process, and this is especially the case for those who have never done it before and don’t know what to expect! Here we discuss our top tips for buying your first property…
Save as big a deposit as possible
A deposit on your home will be necessary, and generally the bigger the deposit, the better the mortgage rates you will be offered, and the lower your monthly payments will be.
A minimum of 5% to 20% of the cost of the property will be necessary to obtain a mortgage, with at least 25% to have access to the best deals.
Research first time buyer schemes
In the UK there are several government schemes available to first time buyers. If you have a smaller deposit, the Help to Buy scheme offers first time buyers the opportunity to buy with a deposit of just 5%. The equity loan part of Help to Buy is only available on newly built homes, worth up to £600,000, and 80% of the value of the property needs to be secured throughout your deposit and mortgage, with the government providing a loan for the remainder. Mortgage guarantees are also available for new and existing properties, with the guarantee on up to 15% of the value of your new home provided to your lender by the government rather than you.
Another option is the Help to Buy ISA, which gives a bonus of £50 for every £200 saved for a deposit.
Remember to budget for Stamp Duty and other costs
Whilst the cost of a new property is the biggest you are likely to take on, it’s important to bear in mind the many other costs that you need to budget for. Stamp Duty is a tax which is paid when you buy property or land over a certain value; currently a property worth £125,000 will mean that you pay 2% Stamp Duty.
Other costs to factor in include a valuation fee, the cost of a surveyor, the cost of a property solicitor or conveyancer, and costs of removal and redecoration.
To find out more about the properties that Naylors have to offer to first time buyers, call us today on 01858 450020.