Things to know as a first-time buyer:

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  1. Save for a deposit.

This will then be the money you put down on the house, which usually needs to be 5% of the property’s value. If you save more than this, you will have access to a larger range of mortgages. Mortgage lenders will then loan you the rest of the 95% to pay for the mortgage of the house. Look around the area you are fixing your property search on, this will mean you will have an idea of how much deposit you will need. For example, if you were looking in a specific area whereby a three-bedroom property was around £200,000, you would need to save a deposit of £10,000 and the mortgage lenders would loan you the rest. Sometimes you may find repayments are too high, which is where a bigger deposit would help, or even looking at housing schemes like the Help-to-buy schemes.

  • Budget for the additional costs of moving.

Surveyor’s fee; It is important that when you buy a property it’s checked over by a surveyor, just to make sure there are no problems with it. These can range from on average £250 upwards.

Removal costs; This will depend on the property type you are moving into, how many miles you are moving and if you need packing services/materials.

Solicitor’s fee; When buying a property, you will need a solicitor to run the legal side of buying and selling. These figures can change, depending on property type and location, as this will depend on the searches that will be done to complete the conveying process.

Stamp Duty; For properties that have a value of under £500,000 for first time buyers, there will be no stamp duty on the first £300,000.

Buildings Insurance; This insurance covers the cost of repairs to the physical structure of a property from theft or damage e.g floods or fire. When choosing buildings insurance, make sure you read everything before you sign, so you know what your insurance specifically covers.

Arrangement fees; This fee sets up your mortgage loan, which you can usually choose between paying up front or adding it onto your mortgage. By adding it onto your mortgage, you may end up paying interest on this, therefore if you can pay it upfront.

Valuation fee; This is charged by your mortgage lender for commissioning a mortgage valuation. This valuation is an examination of the property to make sure it is suitable to lend on.

READ MORE: https://www.moneyadviceservice.org.uk/en/articles/first-time-buyer-money-tips

READ MORE: https://outwittrade.com/first-time-home-buyer-tips

If you’re a first-time buyer, this probably sounds quite terrifying, but I can assure you there are lots of people out there to help you along to finding your first home. To those who have already saved and would like to know more about the property market or houses we have for sale, contact us at ashford@evolutionproperties.co.uk or phone us on 01233 501601. We guarantee you will be in the best hands.

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