1. The larger your deposit, the better
When it comes to buying your own home, the larger your deposit, the better. Although there are 5% mortgages available, buyers are widely encouraged to save at least 10% of the property’s price if possible. If you’re able to save a larger deposit of 20, 30 or even 40% of the home’s value, you could see yourself accessing much more affordable mortgage deals. This is because the larger your deposit, the less interest you’ll be required to pay on your loan. As a result, your mortgage repayments will be smaller and much more manageable.2. The location of your property will have a huge impact on its value
As easy as it is to fall in love with a handsome property that ticks all your boxes, the location can have a huge impact on its value over time. Even if you’re happy with its location, it’s worth considering how popular the property would be to other people too. Does it have strong transport links? Are there many amenities nearby? Is it situated near schools? When you come to sell it, these are things most buyers will take into account, and although your main priority should be finding the right place for you, it’s wise to think ahead and consider how easy it would be to sell in future.3. A mortgage broker can make the process so much easier
When looking for a mortgage, you may feel tempted to apply for a loan with a bank or building society you’re already familiar with. However, this approach could see you missing out on a great deal and paying a significantly larger amount of money for your home over time. By seeking the help of an experienced mortgage broker, you can compare the entire mortgage market with ease and find a product that suits your circumstances perfectly. Your broker will highlight the very best deals and point you in the direction of the lender most likely to accept your application. A mortgage broker can be particularly beneficial if you have a small deposit, a poor credit rating or you’re self employed, as they’ll know which lenders are the most sympathetic towards first time buyers in difficult financial situations.4. Read your contracts
When faced with long contracts, many people skim over them really quickly, paying very little attention to the small print. However, when buying your own home, be sure to read every word to make sure you know what you’re signing up for. For example, it’s important to determine whether the property is freehold or leasehold. When you have a freehold home, you own both the property itself and the ground it’s built on. If you have a leasehold home, you own the property but rent the ground from a landlord. Most apartment blocks include leasehold properties but it’s becoming increasingly common for houses to be leasehold too, particularly new builds. Whether you buy a leasehold apartment or a house, you may be expected to pay ground rent and maintenance charges to the landlord. Read your contract carefully and look out for clauses that give an indication as to how much your ground rent and maintenance charges can increase. These charges may be affordable to begin with but could rise over time. Don’t be afraid to ask your solicitor or mortgage broker for advice at any stage of the process. If you spot anything in your contracts that raises concerns, it’s worth asking an expert for help before signing on the dotted line.5. The home-buying costs don’t end with the deposit
Many first time buyers work so hard to save a deposit that they forget there are other costs to consider when buying their own place. Here are some of the fees and charges to take into account:Solicitor/conveyancing fees
You’ll need to hire a solicitor to handle the legal aspects of your home purchase. This process is called conveyancing. Your solicitor will draw up contracts, deal with Land Registry, arrange stamp duty payments if necessary, and transfer your payment to the seller. Conveyancing fees vary depending on the solicitor in question but they tend to be somewhere between £500 to £1,500.Surveying costs
Before you buy a property, it’s wise to get it checked out by a surveyor. Usually, your mortgage provider will conduct a valuation to ensure the property is worth the amount you’re paying for it, but it’s a good idea to get your own surveyor to carry out a more in depth inspection. A good surveyor will look out for problems such as damp, defects and subsidence. Survey costs can range from a basic home condition survey costing around £250 to a thorough structural survey of £600 or more.Mortgage broker fees
If you decide to use a mortgage broker, you’ll often be required to pay them a fee for their services. Fees differ between brokers, but if you choose one with a great reputation and extensive knowledge of the mortgage market, the fees you pay are likely to be an investment.Stamp Duty Land Tax
Homes costing £125,000 or more will incur stamp duty land tax (SDLT), and the rate you’ll be required to pay will depend on the property’s value. The rates are as follows:- Properties priced up to £125,000 - No SDLT payable
- Properties priced between £125,001 to £250,000 - 2%
- Properties priced between £250,001 and £925,000 - 5%
- Properties priced between £925,001 and £1.5 million - 10%
- Properties priced above £1.5 million - 12%
