Are you looking to buy your first home and get on the property ladder but not sure where to start?
Today on the Bromley Property Company blog we have some tips and advice for those wanting to do so, in the most stress-free way possible…
With an average house deposit nationally at around £25,000, it’s not surprising that many people feel that saving up and being able to buy their own property, especially with the rising cost of living, is simply a pipe dream. However, starting to save as early as possible will help towards your savings goal. The average age of first-time property owners is 33, so if you’re still in your twenties, it’s definitely worth planning ahead and saving (even small amounts) if possible.
Consider exploring financial products that will help you save, such as Lifetime ISAs and look into first-time buyer schemes too. You can put up to £4,000 per year into a Lifetime ISA and receive a 25% bonus on it if you use it to buy your first home or for your retirement. YouTube channel ‘Money to the Masses’ has many videos about such products and provides a simple, no-nonsense guide to them. First-time buyer schemes are also available in some areas of the UK and are worth investigating too.
Chat to a Mortgage Advisor
An experienced mortgage adviser (such as Bromley’s Paul Martins) will look at your income and advise you as to what budget you might have to play with when it comes to purchasing a property, and take into account any debts you have, and therefore calculate how much they think you should be able to borrow. Online mortgage calculators give an indication too, with the mortgage term for the majority of first-time buyers to be 20–30+ years.
Decide where you might like to live
By researching various areas, you’ll have an idea of what kind of property you’ll get for your available money. Nothing worse than falling in love with a property or area that’s out of budget! It’s much better to be realistic and work with what you can afford.
Get your paperwork up-to-date
Once you have an offer accepted on your chosen property, you’ll need to submit different kinds of paperwork to get the process moving. Ensure you have copies of your ID, as well as utility bills with your name on, as you’ll need to share these with your estate agent. You’ll also need to kick-start the mortgage process and instruct a solicitor.
If owning a property alone, or even with a partner, is out of reach, consider clubbing together with a friends(s) to take out a mortgage. Pooling resources like this can mean a bigger deposit and more affordable monthly payments. Some mortgage lenders will allow up to four people to apply together, but they may only take into account the income of the two highest earners when assessing affordability and the maximum amount they will loan to you.
Your first home won’t necessarily be your dream or ‘forever’ home, but everyone starts somewhere! If you have any further questions of queries about buying a first property in the Bromley area, then don’t hesitate to get in contact with one of our experienced team.