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The 12 Stages Of Buying Your First Home

MORTGAGES | 13.04.2021

Buying your first home can be a confusing and lengthy journey. That’s why we’ve created this 12-step guide to help you understand the process of buying a house, covering everything from saving for a mortgage deposit to making an offer.

1. Saving For A Mortgage Deposit

First up on the buying your first home checklist? Saving enough money to put down a deposit. The reintroduction of 95% mortgages means you now have the option to save for 5% of the property’s purchase price, making it easier for first-time buyers to get on the property ladder. However, if you can afford to put the big move on hold and save a larger amount, you’ll have access to mortgage deals with lower interest rates. 

2. Finding out how much you can borrow with our Mortgage calculator 

Banks and building societies will take a look at your credit history, size of your deposit, income, and outgoings to determine how much they’re willing to lend you. To get an indication of how much you can borrow, take a look at our mortgage calculator. 

3. Asking around

Buying your first home is a huge decision, one that’s only made harder if you’ve never lived in the area before. As well as doing your own research on important factors such as education, transport links, development applications, and crime levels, try and find the neighbourhood’s community on social media for a better picture of what the area is like to live in. 

4. Considering a mortgage agreement in principle 

A mortgage agreement in principle is where a lender takes some details on your income, spending, and debts before producing a figure that ‘in principle’ it would be able to lend. Knowing how much you’ll be able to borrow from the get-go can speed up the buying process and help you stand out from other prospective buyers.  As mortgage brokers in Manchester, applying for an agreement in principle is something we can help with. We typically ask you to provide:
  • Your name 
  • Date of birth
  • Three years of address history
  • Your income and outgoings 

5. Registering With Estate Agents 

Once you’ve decided on the area you see yourself living in, it’s a good idea to register with its local estate agents. When registering, be sure to inform the agency of your personal situation and requirements so they have the best chance at finding your ideal property. 

6. Booking house viewings 

It’s impossible to gauge whether a home is right for you by just browsing through Rightmove. View your favourite properties in person to see which one gives you the all important ‘at home’ feeling. 

7. Making an offer on a house or flat

Use the asking price as a starting point and make an offer lower than this. But if there’s other people interested in the property too, you may need to match the asking price or even offer above it. Take a look on Rightmove or Zoopla at similar properties in the same area to work out how much the property is worth. 

8. Applying for a mortgage

As a first time buyer, you’ll probably feel unsure about which mortgage to go for. Here’s your options:  A fixed rate mortgage charges a set rate of interest for a predetermined time frame. Once this period is over, the interest rate usually transfers over to the lender’s Standard Variable Rate (SVR). A variable rate mortgage is where the interest owed rises or falls depending on the base rates set by the bank. This works out well if the base rate is low as you’ll benefit from extremely low mortgage repayments. But if the base rate increases, so will the interest owed, making your mortgage repayments very expensive. Trackers are a type of variable rate mortgage where the interest you pay depends on the base rate set by the Bank of England. However, unlike traditional variable rate mortgages,  a tracker mortgage doesn’t have to be an exact match to the Bank of England’s base rate. For example, the rate might be set at “base rate plus 1%”, meaning you’ll be charged a little above whatever the base rate is at the time. 

9. Finding a conveyancer or property solicitor 

Once your offer is accepted, you’ll need to find a conveyancer or property solicitor to complete the conveyancing legal process. Conveyancing includes carrying out searches, making and checking contracts, liaising with the Land Registry, and paying any stamp duty. 

10. Getting a property survey 

Not everything is as it appears on the surface, so getting a property survey helps to uncover the condition of the building and any potential structural issues. Surveys are optional, but being aware of any problems before buying gives you the chance to decide on how much to offer or set money aside for repairs.

11. Arranging home insurance 

Your buildings insurance needs to be in place from the moment you exchange contracts because you are legally bound to buy the property once this process is completed. Most mortgage providers make this a condition of lending.   Insurance doesn’t need to come into effect until the day of completion if you’re purchasing a new-build. 

12. Exchanging contracts

Once you and the seller have exchanged signed contracts and you’ve paid the deposit, the agreement for you to buy the property is legally binding. There are a few things you need to have in place before this happens though: 
  • Written mortgage offer
  • Agreed completion date
  • Buildings insurance (to commence from the day of exchange)
Around two weeks later on completion day, the seller will receive the money and you can collect the keys! For more help with buying your first home, get in touch with the TaylorMade team today or call 0345 305 2540. Our expert advisors are here to guide you through every step of the process.
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Our address for this is:
Complaints Officer, TaylorMade Finance Ltd, 4 Church Road, Urmston, Manchester, M41 9BU. Our email address is info@taylormade-finance.co.uk and our telephone number is 0161 776 1089. We will then investigate the issues raised and inform you of our findings. Should you be unhappy with the resolution to your complaint you may contact the Financial Ombudsman Service, who can be contacted at the following address: Financial Ombudsman Service, Exchange Tower, London, E14 9SR.

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