Getting on the property ladder might seem like something of a distant dream for first-time buyers at the moment, with the average house price breaching £300,000 for the first time ever.
However, unprecedented growth does not make the dream impossible! Indeed, the benefits of getting on the property ladder outweigh the risks even in the midst of such volatility. But how should one new to the market look into buying a home? Where to start?
Talk to a Mortgage Advisor
This is nothing short of a necessary step for those buying into the property market for the very first time.
Unless you are buying a home outright in cash, you will be using a mortgage plan to buy a home – and it is the value of your eventual mortgage plan that will decide your budget.
There are various factors your mortgage will take into account, including your job, financial stability and credit score. Speaking to a mortgage advisor will clear up a lot of the process for you, as well as the house-buying process as a whole.
After speaking to one, you’ll feel a lot more confident in looking at specific properties within a budget.
Marry Budget and Location
With an idea of what kind of mortgage value, you’ll be able to get, you can begin to marry that budget with house prices, depending on your criteria.
Location has a profound effect on value in the UK and could be the difference between a terraced townhouse and a detached multi-bedroom property.
It’s also important not to discount new builds from your property search. Even though they constitute the creation of new neighbourhoods entirely, they are well-connected and often well-priced to boot.
A simple search in online property comparison sites for ‘new builds near me’ can show you the going rate for a new build in your general area and give you an idea of what’s available in your price range.
Consider Downsizing
Generally, first mortgages are of a relatively low value. The majority of first-time buyers are able to meet the 5%, sometimes 10% deposit as a result of inheritance – and on top of that, early-career salaries tend to yield lower limits for mortgage value.
As such, you may have to mitigate your expectations a little, especially if you’ve been renting in an urban area up until now. You may have to reckon with downsizing in order to get on the ladder, but this can be a blessing in disguise.
Visit an Estate Agent
Lastly, you’ll find the house-viewing process much simpler by working with an estate agent. They are paid on commission and will bend over backwards to find the right property for you in order to effect a sale.
They’ll also be able to handle a lot of pesky paperwork on your behalf, making the house hunt simpler from start to finish.
