Buying a home for the first time can be expensive, daunting but also exciting! If you are buying a house for the first time, make sure you have an idea of the different costs and find out ways you could make buying a home possible and less daunting.
Get help through home ownership schemes
There are a number of schemes aimed at helping first time buyers. There are two “HomeBuy” schemes available to those who buy newly built homes:
•“HomeBuy Direct” – You can get a loan towards the home’s purchase price that has no fees for 5 years.
•“Shared Ownership” – You will need to buy a share of your home and pay rent on the remaining share.
Buying a home with others
You may want to think about buying a home with other family members, friends or a partner. Buying with others can be a solution to coming up with the deposit and sharing costs. It’s important to carefully think about what might happen if circumstances change and one of you want to sell their share of the property. You should get legal advice and draw up an agreement as to how property will be divided in case of death, or if one of you decides to give up their share in the property.
Finding the right mortgage
Most mortgage lenders require a deposit of at least five to ten per cent of the value of the property you wish to buy. As the price of property increases, the deposit can become expensive. You may want to consider asking family or friends for financial help. There are many types of mortgages available and some are targeted specifically at first time buyers. Read the guide to mortgages from the link below to find out how the mortgage system works and where to get financial advice on mortgages.
Buying a home for the first time
High property prices have made it difficult for many people to afford to buy a home.
This may be a particular challenge for you if you are a first time buyer, as you will have many one-off initial costs including:
• A deposit
• Stamp Duty Land Tax
• Surveyors fees
• Lenders fees and charges
• Land Registry fees
• Removals/or moving in charges
If you are thinking of buying a house for the first time, make sure that you have planned for all the costs that you will face. For more information about buying a house, please contact Beeston Shenton’s Conveyancing Solicitors here.