Stressed Landlords

Top tips for first time buyers

Redstones recognises that moving into your first home will be a major milestone in your life. If you’re currently working towards this goal, how can you achieve it successfully? Here are our tops tips:

Be financially savvy
This means having a clear picture of how much money you actually need to buy your first home. Typically, you will need a deposit of at least 5% of the property’s value. In addition, don’t forget that you will require further funds for mortgage and solicitor fees, survey costs and stamp duty if the property is above £125,000. This can amount to several thousands of pounds, which needs to be added to the initial cost of buying a home. Furniture, carpets, decor and household supplies also need consideration.

Think about your household budget once you’ve moved in too. The budget will need to cover the mortgage, bills and other outgoings on a monthly basis, as well as a contingency for maintenance and any emergencies that could occur. Understanding your costs and being able to stick to a budget ensures you’re making the right decision and will be happy once you move in.

Get Help to Buy
If you’re struggling to save a deposit, consider taking advantage of the Help to Buy government scheme.

Their equity loan scheme offers an interest-free loan of up to 20% of the value of a new build property, whilst the mortgage guarantee scheme has increased the number of mortgages only requiring a deposit of 5%, which makes mortgage interest rates more affordable.

Research different mortgages

There are so many mortgages on the market that it is worth speaking to a mortgage broker, bank or building society early on. You can start researching the many mortgages available through a price comparison site too, which often include Mortgage Calculators that help you work out monthly payments based on the interest rates available and repayment terms.

A fixed rate mortgage is often useful for first time buyers, as it means that your monthly payments will remain the same for a number of years. However, variable rate mortgages reflect the Bank of England base rate, which is historically low at the moment.

It may feel daunting to make a big commitment such as buying your first home, but by following these tips you can be assured that you’re making the right decisions.

Ready to buy your first home? Let Redstones help you take that important step.