Planning ahead! Don’t forget to plan out all the costs involved in buying a property. Deposit is not the only cost involved. There may be application fees and valuation fees to pay when arranging the remortgage. Solicitor’s fees, removals and some surplus money for works on the property may be needed, if so make sure you budget them in. Don’t forget Stamp Duty is only payable after £250,000 if you are a first time buyer!
How much can you borrow! Big question for every first time buyer. Ask your Broker for some advice on this; they’ll be able to give you an idea of what’s realistic in today's market.
Choose your rate wisely! Your broker will be on hand to give you some advice on this so don’t panic. However it may be worth reading up on what the different rate types are. You can find information on this by reading our jargon buster.
Finding a Property! In a perfect world you’d want the mortgage arranged before you start house hunting. So get your Broker to get you an agreement in principle from your potential bank or building society. If you are a First Time Buyer and have one of these, an Estate Agent should take your offers more seriously.
Don’t get caught out! Some properties are harder to get mortgages for than others. Look out for freehold flats, short leases and properties near commercial units and above shops. They may be problematic!
Ask questions! Don’t be afraid to ask if you don’t understand. There is a lot of information to take in if you are a first time buyer; your broker doesn’t only arrange the mortgage. They can help answer any questions regarding things like solicitors and valuations.
Protecting what you have! Get your mortgage broker to provide you with some insurance quotations for things like life insurance and income protection. After all it’s probably been a struggle to buy your first home; you should do everything in your power to protect it!
Haggle hard! Make sure you are making realistic offers on properties. Websites like www.nethouseprices.co.uk can be a good indicator of previously sold prices in that area.
Future planning! Talk to your broker about what your future plans are for the property. Extensions or possible additions to the family could help him find the right product for now and in the future.
Are your parents helping? Many first time buyers get a little bit of help from relatives when saving for a deposit. Make sure your broker knows if any of your deposit is gifted from a relative as the bank will want to know.