It can be a daunting experience embarking on a journey to buy your first home. You’ve never done it before; you may have asked around – the jargon is confusing. What is with all those interest rates – why do they change? Why does it matter? Can I even get a mortgage?
These are just some of the questions that first-time buyers might ask themselves. This is before any of the groundwork begins – and then it gets even more complicated. All the evidence, paperwork, solicitors, deposits, stamp duty. The list goes on.
This is a time that should be exciting, but with making sure you have everything covered you can lose sight of the thrill. Here is our top tips to get you back into the thrill of it.
- Get yourself ready, do your homework, Research
- Get organised
- Work out your budget, what can you really afford to spend monthly?
- Do not forget the small stuff – council tax, life insurance, home insurance, utilities, etc
- Do not overreach – it might seem like you can sacrifice the dinner and drinks outside to cover the extra expense. But everybody needs a release, after a while, you may need some respite from cutting back.
- Speak to a broker – if in doubt and you are not sure about which lender, or how to go about purchasing your first property. The fee they charge can easily be offset against the time you save and the reduced stress levels.
Generally speaking, we would suggest that it is important to speak to a broker initially to understand what your limits are, a broker will advise you from start to finish the whole process and what is involved. Usually, an initial consult is free – and you may be surprised to learn that broker fees are more affordable than you think, and the broker could even save you money in the long term.
A key thing to remember with any mortgage is key advice from the FCA (Financial Conduct Authority) “your home may be repossessed if you do not keep up with payments”.
Attention: Late repayments can cause you serious money problems. For help go to moneyhelper.org.uk