It can be really tough these days for first time buyers to get a foot on the property ladder. The Chancellor is trying to help by abolishing stamp duty for properties under a certain value. But you will need more than this. You need to keep your motivation going so that you can achieve your dream of owning your own home.
Buying your first home is a really exciting prospect. You need to keep your head and follow the tips below and you will get there. Treat it as a process and bide your time and you will achieve your dreams.
Get Saving for that Deposit
A lot of potential first time buyers will find this one of the biggest obstacles to owning their own home. You need to have a plan to save the money that you need in the fastest possible time.
A lot of first time buyers underestimate just how much money they will need for a deposit and other expenses. The average amount required is around £7,590. So take a good look at your financial situation and start to save as much money as you can every month.
Examine your Spending
Examine everything that you are spending at the moment. Do you really need those expensive coffees every morning when you go to work? And what about that gym membership you are still paying for but not attending the gym?
If you have a partner then sit down with them and monitor all expenses. Owning your own home is one of the most important events in your life so be prepared to make cutbacks where necessary. Don’t let frivolous spending stop you from getting your foot on the property ladder.
What is your Borrowing Amount?
So you have started saving for your deposit. Do you know how much you will need to borrow? There are affordability calculators available online and you should use them to work everything out.
Is your Credit Score in order?
All mortgage lenders will examine your credit report to ensure that you are credit worthy. So before this happens you need to check your credit report to check that everything is in order. There is a lot of critical information on your credit report and you need to ensure that it is all accurate and up to date.
If you have a good credit report then you will be accepted for a mortgage and the rate of interest will be in your favour as well. If you have any other outstanding debts then create a plan to pay these off. Be sure that you are not late with any of your payments as lenders will view this very negatively.
Make sure you find the right Mortgage
Don’t just go for the first mortgage offer that you see. There are a lot of lenders out there and the market is very competitive. Some mortgage lenders specialise in first time buyers and have some very competitive packages available.