First Time Buyer Hints and Tips!
MONEY TALK: Mortgages, Deposits and the Rest + 4 Tips for Viewings
What is a mortgage?
A mortgage is a big loan, usually from a bank or building society. They assess your viability on a variety of factors based on your financial situation.
You pay it back to the lender on a monthly basis over a long term, like 25 years. You also have to pay interest back on the loan. It’s a big debt to have but is the main way most people are able to buy property.
How much deposit do you need?
There are some lenders who offer a 95% mortgage so you would need a 5% deposit. If you were buying a property for £200,000, you would need a £10,000 deposit. You could put down a 10% deposit at £20,000 or 15% at £30,000.
The bigger your deposit, often the better your interest rate and lower your monthly repayments. Also, a bigger deposit can mean you’re more likely to be accepted for a mortgage.
Other costs to consider
Survey costs
Legal fees (which would include searches and disbursements)
Stamp Duty (Land and Buildings Transaction Tax for Scotland and Land Transaction Tax for Wales )
Insurance – building and contents
Life insurance – the lender is likely to require this so if anything happens to you, the mortgage debt is settled
Moving costs
Renovation costs (if applicable)
Property maintenance costs from mowing the lawn to replacing roof tiles and cleaning gutters
Furniture, appliances, and other homeware to put in your new home
Decorating
Council tax
Bills like electricity, water, gas, sewerage
4 Tips for Viewings
- Visit the area
If you know roughly where the property is, go for a potter around nearby. Don’t worry too much about
the property itself. You’ll get to check that out with the estate agent on the viewing. Get a feel for the
vicinity and if it’s the sort of place you could see yourself being happy. See where things are nearby that could be useful, like a shop or public transport.
- Get Prepped
Make a list of things to check and questions to ask on the viewing. You might not have any, which is
also fine. If you do have things you wanted to chat through, it can be helpful to have those prompts with you.
- Don't Worry!
Estate agents are experienced at supporting first-time buyers. Feel free to voice any concerns you may have. There’s no such thing as a silly question. The laws in the UK do a lot to protect you when you’re buying property. The chances of something awful being hidden is pretty slim. Hire a surveyor later in the process to properly check things out. If you see cracks, for example, the chances are they’re from settlement and not structural. Don’t worry and use the experts, it’s what they’re there for.
- Don’t delay
There’s a saying in estate agency: ‘The house you’re thinking about overnight is the same one someone saw yesterday, thought about overnight and is going to buy today.” If you like it, make an offer. There’s a real FOMO (fear of missing out) for first-time buyers. This can make you dither and wait ‘in case something better pops up’. There’s only so many places you can buy in your budget that fit your ‘must-haves’. Don’t miss out on The One. We hope you found the information in this guide useful.
Whatever questions you have about buying your first home, please feel free to contact us. We’re here to help in this exciting chapter of your life.
