Are you thinking of buying a property on your own? Purchasing a home can be a big commitment for joint buyers, let alone one person. We wanted to help you on your way by providing some useful tips, to make your experience less daunting.
Understand your Financial Constraints(including credit score)
Before embarking on your solo buying Journey, we would suggest doing some research into the property market and getting an idea of the type of property you are interested in, its location, and its value.
The above steps will hopefully give you an idea of what price points you are looking for, and from there you can work out if buying a property is within your means. Do not forget to factor in all your outgoings – and if your income is reliant on part commission, we would suggest factoring in only your set income to give you a more manageable budget.
It might also be a good idea to investigate your credit score, usually the higher the better. However, there are also credit repair lenders out there if your credit score is not as high as needed.
Understand Future Costs
Buying a property is not purely about the value of the home, but also about the additional or ongoing costs that you will need to factor in, such as:
- Solicitors Fees
- Stamp Duty (if applicable)
- Lender’s fee (arrangement fee)
- Land registry fee
- Monthly Mortgage Payment
- Home Insurance
- Life Insurance (this is usually in place to pay the lender should the unfortunate occur)
- Council Tax
- Permits (Car if applicable)
- Ground Rent (if applicable)
Have a Plan
It is important to have a plan of action set out, this should include the overall budget to buy (how much you need from a lender) and repayment, deposit. Also worth noting is the area you want to buy, amenities you need such as public transport, supermarket, dentist so on and so forth.
We would also outline realistic timeframes for you to be able to make the purchase and move into your new property, taking into consideration any notice period you may need to give your current landlord if applicable.
Speak to a Mortgage Broker
Once you have your ducks in a row, we would suggest speaking to an independent mortgage broker. They will usually have access to a wide panel of lenders versus high street banks that only offer their own products.
Not only is having access to a wide panel of lenders good for getting a competitive mortgage deal, but the broker’s knowledge will also be useful in exploring:
1. First Time Buyer Schemes
There are several schemes available, and mortgage brokers not only find competitive rates but can also offer advice on schemes that are suitable.
2. Mortgage in principle
Another thing to consider is a mortgage in principle, this can be a great asset when viewing properties, and could help with negotiating lower sell prices. A seller may be more inclined to take an offer seriously if they know that lender has provisionally (bear in mind this is not absolute and is usually pending further assessment)agreed to offer you a loan.
Would you like to discuss your mortgage options?
As an independent mortgage broker, we have access to comprehensive mortgage and insurance markets, giving competitive options and prices across both residential and commercial products. Get in touch to see how we can assist.
Attention: Late repayments can cause you serious money problems. For help go to moneyhelper.org.uk