If you are buying a property for the first time you may find the information in this article useful as it contains useful information on areas that may help you establish a fuller understanding of the process, what’s involved and areas you may not have considered.
It is important to know that the there are many fees involved in the purchase of a property, not just the cost of the monthly mortgage payments, and it is important to budget for them all:
Purchasing and owning a home can be very costly and responsibilities for maintenance are all yours. This means that it is advantageous to pay off your debt and leave a cushion of savings for after your move taking account of your deposit, moving fees and any known maintenance.
Thoroughly check your monthly budget to see what you can comfortably afford. You need to make sure you can afford to pay your mortgage, council tax, phone, transport and utilities as well as living costs for you and your family. Be careful to leave excess funds for unexpected financial needs on maintenance, emergencies and do not forget to allow money for holidays and days out!
Most mortgage lenders will require a minimum deposit of 10% of the purchase price although there are some lenders who may lend on just 5%. It can be a hard task to save up this level of money after your current day to day requirements however the more you can afford to put down the better it will be for you in the long run.
Opening a Government help to buy ISA is a great way to help you save for your deposit where you can earn up to 2.58% interest tax-free on your money. If the funds saved are used towards a property purchase the Government will contribute an additional 25% free of charge.
Once you have your financial plan in place and ideally have a decision in principle from a mortgage lender it is time to hunt for your new home. The internet is undoubtedly your most powerful tool to search sites such as Rightmove and Zoopla and to compare sold prices using sites such as nethouseprices.
It is also useful to note that many house do not reach the open market so make sure you approach all local estate agents as a motivated and prepared buyer to give you the best chance of seeing what properties are coming onto the market.
First time buyers may not be aware of the conveyancing process until they have an offer accepted on a property. Conveyancing is the legal process of transferring ownership of property and if you are using a mortgage you will require a reputable and trusted conveyancing solicitor. Read our helpful guides to understand the entire process of how property is bought and sold and get a free quote here.