It’s a challenge for young people to get on the property ladder. Houses in York sell for well above the national average, but having a home to call your own is not just an exciting next step, it’s an important investment for the future.
Here at Ardent our mortgage advisors and consultants have put together their top tips for getting onto the “property ladder” for the first time.
- Put down a deposit
If you’re buying a home, you’ll need a deposit. Though it’s difficult to pull the money together to do this, it’s important. If you don’t put down at least 10% of the purchase price, interest rates on your mortgage will be much higher. There are a few things that can make this easier:
- Take advantage of no stamp duty. Being a first-time buyer means the government will wave your tax for purchasing. As long as your property costs less than £300,000, you can save a significant amount. Don’t forget though, you’ll still need to pay solicitors, surveyors and financial advisors.
- Ask for a deposit as a gift. Perhaps you received money from loved ones that you could put towards a deposit? Or perhaps Christmas could be a good chance to ask for a contribution towards your 10%.
2. Seek financial advice
Buying a property can be confusing, especially when it’s your first time. We highly recommended that you seek expert advice to help you through the process.
- Find out what you can afford to buy. Financial advisors are able to tell you how much you can borrow and therefore how much you’ll be able to spend. If you don’t find this out before viewing, you could be looking at properties out of your budget.
- Show vendors and estate agents that you’re ready to buy. If you’ve sought financial advice, you are much more convincing to those selling.
- Get certainty from your mortgage lender. A decision in principle is a big step towards having the certainty you need.
3. Decide on your monthly mortgage payments
Your current situation will determine how much you can afford to pay on your mortgage.
- If you’re living with family, the costs might come as a shock. It’s important to make sure you’ll have the funds to manage a new monthly expenditure before you go ahead with your purchase.
- If you’re already renting, you’ll be used to paying out every month. Your mortgage payments will probably not be too different from what you’re currently paying. As an added bonus though, your payments will help you call the property your own.
4. View lots of properties
There’s a lot to consider when it comes to choosing your property. Having an idea of what you’re looking for will make your search more efficient.
- Decide what kind of home you’d like. As simple as it sounds, if having a garden is your top priority, then a flat is not going to be right. Be clear on what’s most important to you and shortlist properties accordingly.
- Think about renovating. For some, redecorating a property is a chance to make a house a home. But you may not have the funds or time to do this. Keep in mind the work that will need doing when you view.
- Prepare to be flexible. It’s normal to change your preference once you start visiting properties. Keep an open mind and don’t be deterred if you fall for a place that isn’t quite what you were expecting.
5. Make an offer
You’ve set your priorities, sought financial advice and found your ideal home. Now it’s time to make an offer.
- Don’t be afraid to haggle. It’s nearly always the case that the price agreed is different from the price advertised. Negotiate with your estate agent and vendor so that you get the best deal possible.
- Keep in touch with your financial advisor. At Ardent, we’ll support you every step of the way. On reaching the closing stages, keep in touch and make sure your finances suit the purchase price.
Follow these steps and you’ll be well on the way to buying your first home - an investment and a place you can call your own.
For any questions on mortgages, the process of buying a house or Financial advice, our York team are happy to help. Contact us today here.