Calling First Time Buyers!
Are you a first time buyer?
We are just about to launch an incredible First time buyer event for our development in Cilgerran. If you’re looking to purchase a two bedroom house in the north of Pembrokeshire you won’t want to miss this event! Keep an eye on our website and Facebook page for more exciting information.
A helping hand can go a long way when you’re trying to get your foot on the property ladder. According to Which? one quarter of first time buyers receive some kind of helping hand with money for a deposit from their parents*. Although house prices remain steady, they are high and first time buyers can find affordability an issue, let alone saving for the deposit. Here are a few top tips:
- Save, Save, Save! Without a deposit getting on that ladder is going to be tough. While 100% mortgages are in existence, they tend to be incredibly costly and have very strict eligibility criteria. A 5% deposit is really going to be your base level for saving, anything above that is beneficial. Don’t forget you also have to save for the other selling related expenses. Take a look at this helpful article from the Money Saving Expert around additional costs: https://www.moneysavingexpert.com/mortgages/mortgage-fees-stamp-duty/
- Get your spending in order. Lenders no longer just look at your income and deposit level, they will assess your affordability based on your spending habits, debts and saving ability.
- Find yourself a good mortgage broker or IFA (independent financial advisor). Not only will they help you find the best mortgage deal to suit your needs, they can also explain the schemes that might be available to you to help you secure your dream home.
- Do some research. Buying schemes, housing availability in your desired area and facilities and amenities are all important factors when buying a house. But if you’re a first time buyer, head online and do some jargon busting. Buying a home can be quite confusing – research terms and phrases that commonly crop up in purchases to enable you to have the best possible understanding of the process.
- Broaden your horizon. Does a house in your hometown seem out of financial reach? Take time to explore surrounding areas and have a browse at what’s on offer. You might be surprised to find you fall in love with a nearby area that you hadn’t previously considered. Sometimes a more flexible approach to location can enable you to get more for your money.
- Have a realistic approach. Is your dream home still unaffordable? Would it honestly make more sense to save for another year? Is there likely to be the possibility for a promotion at work coming up in the next couple of months that might make your affordability better on your mortgage? While getting on the property ladder ASAP is a wise choice, putting yourself into a position where every last penny is spent at the end of the month on the bills is going to be hard going. We all expect the first couple of years in our new home to be tight, but squeezing yourselves too hard, depending on a bonus or unrealistic overtime, will cause you a lot of stress. After all, you want to be able to enjoy your beautiful new home and not just survive month on month.
The Poppit – an example