First time buyers guide
How much deposit will I need to save?
At least 5% – 20% of the cost of the property. So for a £200,000 property you would need to have saved at least £10,000. The more deposit you have the better chance you will have of securing a mortgage and the lower the rate.
Can I afford the monthly repayments?
Create a spreadsheet to show your monthly income and outgoings, such as food, clothes, travel, household bills etc. Include any debts and direct debits. Keep track over a period of a few months to give you an idea of what you can afford to pay each month.
As part of the mortgage application process you will need to show the lender evidence of these outgoings, and prove your income. They may ask to see pay slips and bank statements. They will need to consider whether you will be able to keep up repayments should there be any potential changes in your situation, such as having children, being made redundant and changes to interest rates.
What other costs will I need to budget for?
Mortgage valuation fees
Stamp duty land tax (use our stamp duty calculator to work out what you will need to pay)
Furniture and decoration costs (if needed)
What is the difference between freehold or leasehold?
Freehold means you own the property and the land it’s built on and are solely responsible for any associated costs at your own discretion.
Leasehold usually applies when purchasing a flat or maisonette. It means that you own the property and its land for the length of your lease agreement with the freeholder. You may need to pay for service charges to cover maintenance and electricity in communal areas and for things like repairs to lifts, roofs, external walls etc.
Before purchasing a leasehold property find out how many years are left on the leasehold as this may affect your mortgage and resale value.
Ask your legal representative about service charges and any other potential costs such as sinking funds for unexpected maintenance, ground rent and landlord-arranged buildings insurance.
Finding a mortgage
There are lots of choices when looking for a mortgage and the process of finding the right one can be daunting. As a first time buyer you may be eligible for a government-backed Help to Buy scheme. There are also guarantor mortgages, which means a parent, guardian or close relative agrees to take over mortgage repayments should you not be able to meet them.
Check out our guide to mortages to find out more about the different types of mortgage available.
We can help you to wade through the options and to find the best solution for you. Come and have a free, no obligations initial chat to us about your options. Call us today on 020 8295 2935 or email us at firstname.lastname@example.org
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New to the buying process or just want the latest info? Look no further than our Useful Information pages.
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First time buyers guideRead more
We can help you to wade through the options and to find the best solution for you.
Guide to Mortgages: the different optionsRead more
There are lots of different types of mortgage to choose from on the market. Here is our guide to mortgages giving you a quick breakdown of the different options.