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Tips for first time buyers
Moving home can be a complicated business, particularly for first time buyers. It pays to do your homework and the following 7 tips should help make the whole process that little bit easier.
Find out how much you can borrow before looking for a home to buy
Most lenders will give you a mortgage approval in principle, subject to a satisfactory valuation once you find a property. We can normally give a decision within 24 hours by completing our mortgage enquiry form.
This means you can be realistic about the houses you can afford and concentrate your efforts on these rather than houses out of your price range. Having your mortgage agreed beforehand will save time when you do find a house you want to buy and demonstrates to the seller that you’re a serious buyer and are able to move quickly.
If you need an illustration showing all of the costs of a new mortgage or you would like to get an agreement in principal, simply complete our online enquiry form and an advisor will reply within 24 hours with a mortgage illustration tailored to your needs. Or, if you just need mortgage or home buying advice, you can call one of our trained team on 0800 169 4984
Be aware of all the costs involved
How much you can afford is not the same as how much you can borrow for your mortgage. There are numerous other costs involved in buying a home and it’s important that you know what these are and how much they are likely to cost you. When you receive your mortgage illustration from us it will cover all the main costs which include:
Make the best use of your savings for the deposit and associated costs
In most cases you will have to pay a deposit of around 5% of the value of the property. Generally, the bigger the deposit you can put down the better the deal you can get. If you borrow more than 90% of the value of the property you could have to pay a Mortgage Indemnity Guarantee or MIG (sometimes called a Higher Lending Charge or HLC). Try to save regularly, take advantage of the best interest rates and make sure you use your ISA allowance. Borrowing money from parents can be a cost effective option if they are in a suitable financial position to be able to lend it.
Choosing your mortgage carefully
There are many different types of mortgage available and it can be confusing if you’re not familiar with them. All of our mortgage advisors are CeMAP (Certificate of Mortgage Advice & Practice) qualified and can give independent advice on the pros and cons on the different types of mortgage available and explain the terminology used.
You should always shop around for the mortgage deal that suits you. And by applying with us, that’s exactly what we’ll do. There are some lenders who offer special deals for first time buyers, these can prove to be very good value often including free valuations and legal fees.
Be realistic about how much you can afford to pay in mortgage repayments each month, including any insurance you have to pay. If you choose a mortgage that does not have a fixed interest rate you must be prepared and have the flexibility for your repayments to increase should mortgage rates rise.
Research the local area
Finding a house is much easier and quicker once you’ve decided what kind of house you want and where you want to live. Consider the practical implications; do you need to live close to a school, your workplace, shopping facilities; how many bedrooms, bathrooms do you need.
Once you know what you’re looking for register with local estate agents, use property sites on the internet and look through local papers to find the best house for your money. Fashionable areas are obviously going to be the most expensive but you may be able to spot an up and coming area by doing some research.
Investigate the property thoroughly
Before you make an offer on a property make sure that you know exactly what you’re buying. A full survey or a Homebuyers Report can reveal a lot more than a basic valuation and although it will cost you more at the outset it could save you money in the long run.
Make sure you look round the property at least twice before you put an offer in and at different times of the day. Try to take someone with you even if you’re buying the property alone, another person may spot things that you have missed and ask them to be honest about their views. Look closely at everything in the house and try things like door handles, windows and taps and don’t be nervous about asking questions.
Arranging a conveyancer
Conveyancing is the name given to the legal process involved when you’re buying a property and can be done by a qualified conveyancer or solicitor. They will obtain local authority searches, check the title of the property and liase with the seller’s conveyancer to exchange contracts and agree a completion date.
When choosing a conveyancer it’s a good idea to check out how often they will keep you updated on progress and what communication methods they will use. To make the process as easy as possible for you, we can arrange a conveyancer to deal with your property purchase, just ask your mortgage advisor for details.
How can I get a free mortgage quote?
To get your free mortgage quotes, you just need to enter some basic information into our simple online quote form and your dedicated adviser will search the entire marketplace to find you the best mortgage deals available.
Or, if you prefer, you can call a fully trained adviser on 0800 169 4984. It will only take a few minutes of your time today but could save you thousands of pounds in interest payments, and will eliminate any worries you may have about getting the best deal possible.
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