Top Tips for First-time buyers

We all know how exciting the prospect of owning your home can be- not to mention a little daunting! For most first-time buyers out there, the thrill of buying your first house is overshadowed by the daunting process of applying for a mortgage and the stress of saving for a deposit. But it doesn’t need to be!

In this article we’ve put together our top tips for first-time buyers to help get you one step closer to the home of your dreams.

Save a large deposit

Although it might seem obvious, saving as much money towards your house deposit really can make the difference when applying for a mortgage. In a nutshell, the bigger the deposit you have, the smaller the mortgage loan you’ll have to borrow from a lender, meaning that the cost of your monthly repayments will also be reduced. 

But don’t fret- if you’re wanting to make that move as soon as possible but don’t have a large deposit saved up, as long as your deposit covers at least 5% of the property’s value, you can still apply for a mortgage. However, it’s worth noting that having a smaller deposit could mean your pool of lenders is narrowed, so really do try to save as much money as you can to help keep your options as open as possible!

Keep a healthy credit score

When applying for a mortgage you’re likely to undergo credit checks, so making sure your credit score is in good working order is one of the first things you should do before even starting your application.

Lenders want to make sure they can rely on you to repay your monthly loan payments, so clearing any existing debt on credit cards or pay later schemes is a must if you want lenders to view you as a low-risk borrower.

You can also improve your credit score by keeping up with any existing monthly payments, closing old credit card accounts, and registering to be on the electoral role.

Keep a steady job

As with credit checks, lenders want to be sure you’ll have enough money to keep up with repayments and so having a steady, full-time job is almost guaranteed to ensure this!

During your mortgage application, you’ll need to provide proof of your last 3 pay checks and employment history. So, before you do apply, it’s worth thinking about your current employment status because starting a new job or being on your notice period could be viewed negatively by some lenders.

Buy with someone else

Buying a house is expensive and doing so on your own is even more so. So, buying your first home with a friend, family member, or partner could help make getting on the property ladder that little bit easier because you’ll split the financial costs between the two of you.

If you apply for a joint mortgage, this being a mortgage that you and another person co-sign for, you’ll be able to combine both your deposit money and their deposit money so that the deposit you put down is bigger!

See what schemes are out there

There are plenty of government schemes out there to make buying your first home a little more attainable. Here’s a quick de-brief of the some of the schemes available:

Shared Ownership- you can buy a share of your home, at least a minimum share of 25%, and then pay rent on the remaining share on the property.

Look, we know it’s not easy getting on the property ladder, but it isn’t as impossible as it sometimes seems! If you do have any mortgage related questions or want help getting ready before taking the plunge and applying for a mortgage, get in touch with one of our team who are on hand to guide you through the process.