Buying your first house is a wonderful thing as it gives you your own little piece of the country, somewhere to call your own, and somewhere to turn into home. However, it’s not without its stresses. Every week, the media covers stories about the struggles facing first-time buyers to get a foot on the ladder or the salaries that are not covering rising house prices. What is the best way to buy your first house in this environment?
Get Your Deposit Sorted
First of all, you will need a deposit. The more you can save, the better; you’re looking anywhere up to 20 per cent of the cost of the property you would like. That means that if you are buying a home for £150,000, you will need a minimum sum of £7,500, which is 5 per cent. Saving is hard, especially if you are already paying rent somewhere, but saving more means that better rates will be available to you.
Set A Budget
Don’t just think about the monthly mortgage repayments at the rate you are quoted; consider what happens when rates start to rise. Lenders will stress-test your finances, so expect to provide evidence of all regular outgoings with the application.
There are running costs that you will need to factor in, along with one-off costs of buying, such as surveys, solicitors and estate agents fees, all before you start on costs for decorating and furnishing your new place.
Find A House
Look for a local expert who will be on the ball in the area in which you want to buy, like Gloucester estate agent TG Residential http://www.tgres.co.uk/, to get on the ladder in Gloucester city or the surrounding countryside.
Once you have found a house, you can push ahead with the purchase. Mortgage Direct lists some of the best deals out there for first-time buyers, so it’s easy to make a comparison.
It is a tough game, and many cite buying a house as the single most stressful thing a person can do, so be prepared for a torrid time. Houses might fall through or you could be outbid. Your advantage in many people’s eyes, however, is that you have no chain as a first-timer, and that can be very attractive to vendors who are keen to secure their own next step.