Tips For First Time Buyers

1)    Where do I start?

The very first step before even looking at any properties is to start saving for the deposit.  It is usually advised to save between 5% and 20%.  Saving 5% or more will also help you apply for a wider range of mortgages.

2)    How will I know what I can afford?

Before starting the exciting journey, it’s a good idea to put a budget together before you start looking a properties so you have a realistic idea of what you can save and what you can buy.  When applying for a mortgage the banks can be very strict with what they require.  They will want to be certain you can keep up the mortgage repayments even if your circumstances change or interest rates increase.

3)    What are the other costs involved?

Including your mortgage monthly payments there will be some other costs involved when buying a property;

  •  Advocate fees (it is advisable to call several of the local firms and establish how much they will charge you – they are competitive, so shop around!)
  •  Survey costs (this will vary, depending on what type of survey you opt for)
  •  Document Duty (2% payable on £250,000 or less; 2.5% payable in excess of £250,000 up to £400,000; and 3% payable in excess of £400,000.00.)

4)    How do I know which mortgage is right for me?

When it comes to picking the right mortgage it’s always a great idea to have a look around and speak to as many people as possible.  There are so many mortgage deals out there so it’s important to pick the right one that works for you.  You may wish to consult a mortgage broker, who can assist you in approaching the various lenders and completing the application forms.

5)    What does the applicant process involve?

It is a good idea to have a mortgage figure agreed in principle, before you have an offer agreed on a property.  This can be very overwhelming, but the lender you choose will want to be sure you can pay even if your financial circumstance change. 

Some of examples of what the lender may want for you to prove your income & outgoings;

  •  Payslips
  • Bank statements
  • Household bills
  • Living costs e.g. Childcare

Now you will be able to begin your search in finding your perfect first property! 

Our next newsletter will cover the intricacies of searching for the right place!