Tips for first time buyers getting onto the property ladder

Tips for first time buyers getting onto the property ladder

11th Apr, 2018

Rocketing house prices, strict affordability checks and the need for a large deposit can make life difficult for anyone trying to invest in a property, but it can be especially tough for first time buyers.

So, we have come up with some helpful tips for new home purchasers to help you get a leg-up onto the ladder…

Keep saving

This is the best thing you can possibly do when looking to purchase a house. You will need at least 5% of the property’s overall value up front for a deposit – but it doesn’t hurt to have more than this! The larger the lump sum you have the better the mortgage deal you’ll usually be offered – it’s hard, but try changing your spending habits and utilising online money management tools to help you save.

Open a Help To Buy ISA

This is the latest government scheme to help first time buyers with their 5% deposit. For every £200 you save per month, you can receive a bonus of up to £50. The maximum value you can save in your ISA is £12,000, which in turn would generate an extra £3,000 from the government – what could be simpler? We would highly recommend these to all first time buyers, as the additional funds can really help you to get onto the property ladder earlier than you think.

Compare mortgages

This may seem like the most obvious thing to do, but it is really easy to overlook this step and become bewildered by the different types of mortgages out there. If you do lots of research and take your time to compare all of the deals available to you, you are bound to find the best offer.

If mortgages really confuse you, you can take a look at our jargon buster here.

Seek parent help

We’re not suggesting that you ask you parents to hand over cash to help you with your house deposit, but they can help you in many other ways like being your guarantor. Equally, this isn’t a decision that should be made lightly, as this will mean your parents will be expected to make any payments that you miss – so think carefully.

Make use of the increased market confidence

It is a great idea to utilise the government incentives or offers while you can – they have already proved to help many first time buyers but they might not be around forever.

It has been suggested that there is a shortage of homes in the UK, which could result in prices increasing, so these schemes have never been more important. Similarly, striking while the iron is hot and buying a house now could also result in yours increasing in value later down the line!

We hope that these tips will give you the confidence to make the leap onto the property ladder and purchase your first home! Good luck and if you need any further help from us – whether it be advice or support searching for a home – you can contact one of our sales team here.

View all posts by Laura Anne Townson

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