5 things you should know when buying your first home

If you’re ready to get onto the property ladder and buy your first home then you’ve come to the right place. The world of property hunting can be a daunting place, especially if you’re purchasing a property for the very first time, but fear not, we’re here to help you every step of the way.


  1. How much deposit do I need to buy a house?

Before looking at properties, you need to think about how you are going to pay for your new home. In order to secure a mortgage, you will generally need to try to save around 5% – 20% of the cost of the home you’d like. So, if your dream home costs £150,000, you will need to save at least £7,500 (5%).


Usually the bigger your deposit, the smaller your monthly repayments will be but your financial advisor will be able to help guide you and advise what is affordable for you borrow so you stay within your means. Our team of financial advisors can offer free advice with competitive arrangement fees and are always at hand to help!


  1. View as many properties as possible before making a decision

However much you love the first property you go and see, do be sure to go and see some others too! You never know, you may love the next one even more. If something doesn’t quite feel right, it’s out of your budget or just not giving you the right feels then be patient and see what else might come on to the market soon.


  1. The difference between freehold and leasehold

It’s important to know the difference between a freehold and a leasehold property when buying a house. Freehold is when you own the property outright and leasehold is when you own it for a set length of time (anywhere from 40 to 999 years). If a property is a freehold, you will own the house, the land and it’s all in your name (to do with as you please!) but with a leasehold this is not the case. Leasehold’s are usually cheaper to buy, so there will be less money to ‘front-up’ initially but there will be rent and/or additional charges to pay which vary from property to property. Leaseholds are a great option if you have less money saved for a deposit but do be sure to factor in the extra charges payable each month/year for a leasehold to your budget.


  1. Get a Help to Buy ISA – before the deadline this November!

Who doesn’t like free money? In a nutshell, you can save up to £200 each month in a Help to Buy ISA and the government give you a 25% bonus towards your new home! There are a few rules to abide to but it is a fantastic scheme which will help to boost your savings pot! The government are, however, ending new applications for this scheme on 30th November 2019 so be sure to get your ISA opened before then – you then just need to make sure you claim your government bonus by 2030. Most banks offer a Help to Buy ISA but it’s always worth doing some shopping around as different banks offer better interest rates on your savings.


  1. Estate agents are your friends!

And no, we’re not just saying that! Although as estate agents, we are here to act on behalf of our vendors, the people who are selling you their houses, we also want to provide you with a fantastic service too – you never know, we may be able to help you in the future when you are ready to sell your house so if we can help you in any way then we will! We are a small, family run business and offer a personalised service, ignore the bad rep estate agents get as a whole – we’re quite nice really!


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