5 TIPS TO GET ON TO THE PROPERTY LADDER
1 Manage your expectations It’s easy to get carried away when looking for your first home but try to have realistic expectations of what and where you can afford so you won’t be disappointed further down the line.
Set yourself a budget and separate your must-haves and nice-to-haves before you start your property search, as this will cut out time viewing unsuitable properties and keep you focused on an achievable homeownership goal.
2
Shop around for the best deal There are lots of mortgage deals on the market and a maze of jargon to wade through, which can make finding and securing the right mortgage daunting. It’s important to spend the time to ensure you get the best possible deal for your circumstances. Don’t simply be drawn in by the lowest headline interest rates as there may be high product fees or other hidden charges.
Using a free online mortgage broker such as Trussle can help you find the right deal, based on the true cost by factoring in fees and any cashback to the repayment cost.
3
Be smart with your finances Buying a home is a huge financial commitment and lenders will want to see you’re a trustworthy borrower. Closing any unused bank accounts and paying off your credit card each month will help to get your credit score in check and boost your chances of being accepted for a mortgage.
If you haven’t already, consider looking into Government-backed schemes available to young people, such as the Help to Buy or Lifetime ISA to boost the amount of money you’re putting away.
4
Be inquisitive when viewing properties Take lots of photos and ask questions. It’s easy to overlook what may seem like small things when buying your first home, such as cracks in the walls or signs of damp, but you don’t want to get stuck with costly home repairs.
Smaller DIY jobs don’t have to cost a fortune and can turn a tired-looking house into a home.
5
Consider buying with somebody else That could be a partner, friend or family member – investing with another person makes it more affordable. You’d need to save less towards the deposit too.
You must have honest conversations with the person you plan to buy with as this is likely to be the biggest financial commitment either of you have ever made. A home may be repossessed if you do not keep up repayments and you may have to pay an early repayment charge to the lender if you remortgage or have to make any changes before a fixed deal ends.