Buying a home is never easy – and when you’re looking to get onto the housing ladder for the first time it’s that little bit tougher. The process is filled with plenty of paperwork, uncertain procedures and, of course, a huge financial commitment.
When it’s your first time buying a house, how can you ensure you’re buying the right property? How can you make the process as stress-free as possible? How can you minimise your outgoings during this expensive time?
Here are ten tips for the new homebuyer:
1 – Find Out If You Could Get Help
In order to boost the UK housing market, the government introduced initiatives such a Help To Buy and the shared equity scheme to help people get onto the property ladder.
Want more information? Check out our guides on the Help To Buy scheme and Shared Equity Mortgages.
Read more: Help to Buy ISAs Now Available to Assist First Time Buyers
FAQ Series: What is the New Help to Buy Scheme in Wales?
2 – Take Your Time Finding the Right Mortgage
Selecting the right mortgage can save you substantial amounts over the long term. So be sure to take your time reading up on the various types of mortgages, ascertaining which best suits your circumstances and take your time to compare the wide range of lenders out there. The more time you spend researching, the more chance you’ll have of finding the best-value mortgage.
3 – Find the Right Solicitor
Every prospective homeowner will need to instruct a solicitor to work on your behalf. They will handle the legal issues in the sale and check for any planning issues that could hamper the purchase.
Choosing the wrong solicitor can really hold up the deal and cause you additional stress and cost, so it’s essential to choose one that you trust – not just the cheapest option you can find. A good solicitor will keep you updated every step of the way, keep your costs down and make moving into your first house as stress free as possible.
Read more: Online Conveyancing vs Traditional Conveyancing Services
4 – Remember Interest Rates Are Only Going to go up
When you’re buying your home for the first time in 2014, it’s important to remember that interest rates are currently at an all-time low of 0.5%. Although they’re set to stay that way until 2015 at least (and maybe into 2016), they’re sure to rise in the next five years if the UK continues its upward economic trajectory.
If interest rates rise then mortgages will be affected, so it’s important to ensure you can afford any future hikes or settling on a fixed rate deal to make the most of the current low rates.
5 – Save, Save, Save
Although Help To Buy and other schemes are a great way for people with small deposits to buy their own home, there’s still nothing more cost-effective than saving to make your deposit a little more substantial.
It’s quite simple – the bigger your deposit, the less you’ll have to pay in interest over the 25-30 years you’re paying your mortgage.
Read more: How Much Does it Cost for First Time Buyers?
6 – Remember the Other Costs
Buying a house is a big deal. And if, for whatever reason, you don’t think you’ll be able to handle the repayments of your mortgage, or aren’t sure about the property then you shouldn’t commit to it.
Your deposit will bet the biggest lump of money you put down when buying a home, but there are many other costs that you’ll have to pay, including:
• Mortgage arrangement fees
• Stamp duty – payable on any properties above £125,000
• Solicitor fees
• Survey fees
• Removal fees
• Decorating and furnishing your new home – from DIY costs to buying white goods, sofas and all-important scatter cushions
It’s important to budget for all these costs – and more – when saving for a home to ensure you’re in a comfortable position once you’ve moved in.
Read more: FAQ Series: What is the stamp duty threshold?
FAQ Series: Should we consider buying the freehold on our home?
7 – Check Your Area is the Right One for You
Some first-time buyers have a crystal clear idea of where they want their new home to be. Others will be more flexible as to where they want to live. But it’s always best to double check where you want to live – have a walk round any prospective areas at different times of day.
8 – Ensure Your Perfect Property Really is Perfect
It’s fair to say that it’s easier said than done to find a property that ticks all the boxes. After all, when you’re buying a house for the first time you need to be sure it does all the ugly things to. For instance, does the EPC show that the home is eco-friendly? Are the windows and roof tiles in good condition? Are there any signs of damp?
Read more: FAQ Series: What is a Leasehold Property?
9 – Look Around to Ensure You’re Paying the Best Price
Once you’ve identified the perfect property you’ll need to put an offer to the seller through your solicitor. The seller will have supplied you with a guide price but it’s important to work out how much you’re actually going to offer.
The actual price of a home can depend on so many different variables, so it’s essential to have a look at similar homes in the locale. Here’s where a quality solicitor may be able to help you out – advising you whether you’d be able to snare the home for less than expected, or if a higher bid is necessary to beat off other competition.
10 – Enjoy Your New Home
OK, we know moving house isn’t always sunshine and roses – every house move has its own little quirks and bumps in the road. But once you’ve settled on a price with your seller, paid your fees and exchanged contracts, all you’ve left to do is move into your new home and enjoy it!
At Howells, we’ve helped thousands of people buy their first home in Cardiff, Swansea and across South Wales over the last twenty years. Talk to our friendly team of experienced conveyancers today.
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