First Time Buyers – 5 Tips for Getting on the Property Ladder
The general cost of living has, for many years, risen dramatically across the country. Younger people hoping to get a hold on the property ladder are often priced out the market, and although the housing market is showing signs of recovery, there are less first time buyers in the market and therefore a smaller amount of affordable housing out there. If you’re looking to buy a house for the first time, here are a few tips to getting on the property ladder.
1. Compare Mortgages
You need to make sure you are getting the best mortgage deal possible, as this will impact your future within the housing market. It’s important to choose the correct and most appropriate lender, and also understand how the size of your deposit will affect your mortgage repayments. Try talking to a number of different lenders or look at the various comparison websites to get an idea of the options available to you.
2. Where to Live
Whilst purchasing your first home, you are likely to have friendship, financial and work commitments which will affect where you can live. It pays to look at the bigger picture – it may be worth paying more than originally intended on a mortgage in order to live closer to your place of work, for example. Being able to avoid large commuting and living costs where possible will enable you to take a fresh look at where to live in the future.
3. Make Use of Increased Market Confidence
Entering the property market soon may leave you able to benefit from increased confidence in the housing market further down the line. Recent schemes initiated by the Government to help first time buyers have helped many people into properties, however many people suggest there is still a chronic shortage of actual houses on offer. This may push up prices over the coming years so make the most of any incentives or offers while you can. There is however no guarantee that prices will keep going up so make sure you can afford the property.
4. Keep up with any Debt Repayments
On the back of a story of how a £10 mobile phone debt nearly wrecked a mortgage application, it’s a good reminder of how much of your previous financial life is investigated when buying your first house. If you are looking to buy a house in the coming few years, ensure your debt repayments are up to date, and consider consolidating any outstanding debts into more manageable chucks.
5. Keep Saving!
It’s worth bearing in mind throughout the whole process that you’ll probably need to find at least 5% of the property’s value up front as a deposit. A larger deposit often means a better mortgage deal – consider re-evaluating your money spending habits, and use online money management tools to see how much you need to save and how you might be able to save it.