Getting onto the property ladder can seem impossible, but this is something you should look at because you will have a home you can call your own. When you have your own property, you can refurbish it and redecorate it as you want.
There is a lot that you need to do even after getting everything in place to buy your first home in order to be settled. You need to consider the deposit you need and what the best mortgage rates UK are. You also need to consider if you can actually get a mortgage. If all of this causes a lot of stress, there are some tips that can make everything much easier.
Have A Big Deposit For The Best Rates
The minimum deposit that you need to put down is 5%, but you might want to consider putting down more if you can. When you have a larger deposit, you will lower the amount you have to borrow and more mortgage products will open to you. There is also a chance that you will be able to get the cheapest mortgage rates on the market.
To help you get onto the property ladder, there are a number of government-backed schemes. This includes the Lifetime ISA and the Help to Buy ISA. There is also a 25% bonus you can get which is very worthwhile.
If you find it hard to save for the deposit, you could ask your family to help you with this. If your parents are able to, you can take advantage of a gifted deposit which will really boost your savings.
Budget For The Costs And Additional Fees
The monthly payments and the deposit are not the only costs you face when buying a house. It is recommended that you make sure you have some extra money put aside to cover the extra costs. Some of the fees that you need to save for include:
- Mortgage valuation fees
- Conveyancing fees
- Removal costs
- Stamp duty on property costing more than £300,000
- Survey of the new property
- Home insurance
- Fixture and fitting costs
You can create a written list or a spreadsheet to help you budget for these fees. This is very important so you are not caught out when you have to cover these important costs.
Check Your Credit Rating
When you have a poor credit score, you will be limited regarding the mortgage products you can get. There is a chance you might not be able to get a mortgage at all. This is why you need to check your credit rating and take control of your finances before you apply for a mortgage. This ensures you have enough time to correct any mistakes and ensure that you have a better score. You can get your financial history and credit score from credit report providers.
Do Not Use A Mortgage Broker
Consulting with a mortgage broker or getting advice from a mortgage advisor can be very helpful. However, there are other ways that you can narrow down the options online. There are tools that will compare mortgage deals and help you tailor the deal to your requirements. While it might seem daunting to do this on your own, you will not face any admin fees from brokers which can be very expensive.
Do Your Homework
While this might seem obvious, you do need to do your research when you look for your first mortgage. There are a lot of schemes out there that can help you overcome any issues and buy your first home. This will include affordable house schemes, shared ownership and help-to-buy schemes. Choosing the right one is important and you need to understand what the requirements for each are.