When you are looking to buy your first home, it can be a big challenge to get onto the property ladder, our advisors can give you some great tips to help you get onto the property ladder. First of all, we recommend that you save for the biggest deposit possible, in very simple terms, a borrower’s deposit is a lender’s protection. When deciding whether or not to accept a mortgage application, the lenders have to think about the challenges potential borrower’s may encounter during the life of the mortgage. These may include temporary falls in house prices, periods of unemployment, and periods of a reduced income or at least reduced disposable income. The bigger the deposit a potential borrower can put down, the less exposed the lender is to changes. A bigger deposit will also make for lower monthly repayments as well so the property will be deemed more affordable as well.
You also want to set some money aside for moving costs. It is important to budget yourselves and including when moving home. Buyers may be liable for stamp duty and will need to pay solicitor’s and surveyor’s fees. The actual cost of moving from A to B and furnishing the home its self. It can also be useful to have a budget for unforeseen expenses. When you are looking to buy a home for the first time you might want to look at what the government is offering at the time in terms of help to buy schemes as then you would only need to a certain percentage of the property down and the government will then pay for a percentage of the property as well, therefore you will have less of the mortgage to pay and less interest to pay as well.
Get In Contact with us if you are interested in getting professional financial advice.