First Time Buyers
First Time Buyers
Buying your first home is a significant milestone filled with excitement and decision-making. However, in the UK, first-time buyers face distinct challenges. High property costs, especially in major cities, can be intimidating. Saving for a deposit while covering daily expenses can be tough. Navigating first-time buyer mortgages, government schemes, and the fluctuating housing market can feel overwhelming. While homeownership is attainable, it required careful planning and guidance to overcome these obstacles.
Buying your first home is a significant milestone filled with excitement and decision-making. However, in the UK, first-time buyers face distinct challenges. High property costs, especially in major cities, can be intimidating. Saving for a deposit while covering daily expenses can be tough. Navigating first-time buyer mortgages, government schemes, and the fluctuating housing market can feel overwhelming. While homeownership is attainable, it required careful planning and guidance to overcome these obstacles.
Steps for First time buyers
1) Speak to an Independent Mortgage Adviser to Establish Your Budget: A mortgage adviser will be able to determine how much you can afford to borrow, considering your income and financial situation and guide you through the process.
2) Obtain a Mortgage in Principle to Verify Your Mortgage ability: Secure a mortgage in principle (also known as an agreement in principle) from a lender to confirm that you’re eligible for a mortgage and the amount you could potentially borrow.
3) Start Viewing Properties: Begin the process of viewing properties on the market to find the one that suits your needs and budget.
4) Make an Offer and Negotiate a Price: Express your interest in a property by making an offer to the seller. Negotiate the price with the seller or their agent to reach an agreeable amount.
5) Instruct Your Legal Team and Ask Your Adviser to Complete a Full Application: Appoint a conveyancer (solicitor) to handle the legal aspects of your property purchase. Simultaneously, request your mortgage adviser to initiate the full mortgage application process.
6) Exchange Contracts and Completion: Formally exchange contracts with the seller to commit to the purchase, and then proceed to the final completion stage, which involves the transfer of funds and legal ownership.
Our Services for First Time Buyers
First time buyer Schemes
Shared Ownership: Buyers can purchase a share (usually 25% to 75%) of a property and pay rent on the remaining share. Over time, they can buy more shares in the property, known as “staircasing.” This scheme reduces the barrier to entry as the deposit required is based on the share being purchased, rather than the market value.
Lifetime ISA (LISA): The LISA provides a 25% government bonus on savings up to £4,000 per year. The funds can be used for a first home purchase.
Right to Buy: This scheme allows council tenants to purchase their home at a discount. It’s available in England, Wales, and Northern Ireland.
Rent to Buy: Some housing associations offer Rent to Buy properties where tenants can rent at a reduced rate, with the option to buy the property later.
First-Home Scheme: This is a government initiative to build new homes for first-time buyers. It offers a discount of at least 20% on the market value.
Joint borrower, Sole proprietor: Joint Borrower, Sole Proprietor is a type of mortgage where not all parties to the mortgage are legal owners of the property. For example, if there are two borrowers in the scenario both will be mortgage borrowers, but only one will be named on the title of the property. This is a great way for first-time buyers to potentially borrow more, whilst not losing their stamp duty tax relief.
Fees for First time buyers
The costs involved for a first-time buyer in the UK can vary depending on several factors, such as the location, type of property, and the price of the property. Here are some of the common costs associated with buying a home in the UK:
– Deposit: The deposit is typically a percentage of the property’s purchase price and is usually at least 5% of the total amount. However, the higher the deposit, generally the better the interest rates on your mortgage will be.
– Mortgage fees: Mortgage fees vary depending on the lender and the type of mortgage you choose. These fees can include arrangement fees, valuation fees, broker fees and legal fees.
– Stamp Duty: This is a tax paid by the buyer on the purchase of a property in the UK. The rate varies depending on the value of the property, with first-time buyers not having to pay stamp duty on properties up to £400,000.
– Conveyancing fees: These fees are paid to a solicitor or conveyancer who handles the legal work involved in the purchase of the property.
– Survey fees: You may also need to pay for a survey to check the condition of the property. The cost of the survey will depend on the type of survey you require.
– Removal costs: You may also need to pay for the removal of your belongings to your new home.
How do we help first time buyers?
There’s lots of moving parts when buying a home – we’re here to streamline the process and help you secure the best deal available – with access to the whole market, our priority is to save you time and money. For regular mortgage tips, you can follow our Instagram page here.
Whilst our main objective is to help secure finance on your property, we can also help you with all stages of homeownership such as giving you insight on the market, assistance with negotiating the right deal on your purchase and putting you in touch with trusted legal professionals.
Frequently Asked Questions about our services for First Time Buyers
