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If you want to have your own space and you are tired of renting, getting your foot on the property ladder may not be as difficult as it seems! We’ve outlined five steps to get your foot on the ladder below!
Take a paper and a pen, and start writing down all the facts about owning a property. Think about the total cost of your stamp duty, if applicable, as well as things like bills, solicitor costs, surveys, and mortgage repayments.
If you are not sure what these figures would be, or you want more accurate results, you can ask advice from a financial advisor who will give you the answers to your questions. Alternatively, there are plenty of mortgage calculators which should be able to give you a good indication about these figures.
Do your best to keep an eye on your monthly incomes and expenses. Look at copy of your bank statement, over the last few months, and identify any expenses you could live without for a while. Cutting back on unnecessary costs can help you start saving money.
Once you’ve completed a budget, you can begin to work out what you can realistically afford towards a mortgage, and other associated costs.
Nowadays, there are government schemes that assist first-time buyers trying to buy a house. One of these schemes is Help to Buy Equity Loan. Through this scheme, you will receive funds from the government to put towards your new home.
Another scheme is Help to Buy Mortgage Guarantee. With this scheme, you will have to secure 95% mortgage from a building society or participating bank. The government will give your mortgage lender a guarantee of up to fifteen percent of the house’s value. This means that lenders are able to provide higher loan to value mortgages.
Once you think that you’re in a position to begin looking for your first property, find a good savings account. Thoroughly research the market for the best ISA accounts, offering the highest rates of interest. That way you can start to increase your savings in preparation for buying property and moving into your new home.
Many people think that new properties are more expensive, because you’d be the first owner to live there. This is true of things like cars, so the logic makes sense!
But with government schemes such as Help to Buy, you may be able to get a new property. These schemes are often exclusive to new property.