It seems we are still keen to own our homes, with figures from UK Finance showing that the number of first-time buyers in Britain hit an eleven-year high last year, more than in any year since the financial crisis a decade ago.
This reflects the situation with local mortgage specialists Homeline Mortgages who also helped an increased number of first time buyers get onto the property ladder in 2017 and have seen more first-time buyer mortgage enquiries already this year.
Purchasing your first property can be both an exciting and daunting event in equal measure. Whether you are taking the plunge alone or with a partner or spouse, there are steps you can take to help the process run as smoothly as possible.
Local mortgage expert Ollie Bishton from Homeline Mortgages told HOUSE that it’s all about planning and preparation.
The first focus should be to get your finances in order, and that includes an honest appraisal of your income and outgoing expenditure and curbing any unnecessary spending. You should also check your credit score, as this is something any lender will assess before considering giving you a loan.
“To get the best first-time buyer mortgage you should just save, save and save, and get together as much of a deposit as you can manage. If possible clear off any outstanding debts such as credit cards or loans and focus all your energy into saving money” advised Ollie, “Ideally you need to save around 5% – 20% of the cost of the home you would like; the more you save the wider range of mortgage options will be open to you.”
As well as purchasing the actual property, you will need to allocate funds for associated costs, such as legal fees, surveys, insurance and mortgage arrangement fees, plus potentially decorating and furnishing your new home.
Ollie added, “Doing all this legwork is a good idea, as any lender will want to see that you have worked out a realistic budget and that any mortgage repayments are affordable. Part of our service for first time buyers is to help you plan these budgets before we put your details forward to any lender.”
Another way of helping you purchase your first home is if a family member is willing to gift you funds to go towards your deposit. Ollie added, “A lifetime mortgage is a way your parents or grandparents could release equity from their own home to help you get onto the property ladder. Another option is a guarantor mortgage, where a third party agrees to act as guarantor on your behalf.”
By working with an independent mortgage broker, you will have access to a wider range of lenders, plus they have a trusted support network in place to help the process run as seamlessly as possible.
To book an appointment call 01202 937444 or visit www.homelinemortgages.co.uk
A fee may be charged should you proceed with a Mortgage or Protection application. Please ask your adviser for further details. Your home may be repossessed if you do not keep up repayments.