Buying your first home is a momentous occasion, representing a newfound stability and an investment in your future. But, for many, buying one’s first home has become a pipedream of sorts.
Fast-rising house prices, interest rate hikes, and a national cost-of-living crisis have all co-aligned to render first homes a serious, even prohibitive, expense for first-time buyers.
But even with these factors, buying a first home is not impossible. There are a number of approaches that can make buying your first home simpler, easier, and even cheaper. But what are these approaches exactly, and what should you consider before jumping in at the deep end?
Know Your Budget
Your budget is naturally the central element to buying a first home, and the reason for which many have sworn off attempting to buy. But first homes can be more affordable than they might appear at first glance. For one, first-time buyers are exempt from stamp duty on properties below £300,000 in value, saving thousands in the process.
Mortgage calculators can help you figure out exactly how much you can afford and give you a clearer idea of which homes may be within your budget. These can also be tweaked to take into account your preferred pay-off period and initial deposit.
Look Into Help to Buy Schemes
There are also various schemes and opportunities you can take advantage of as a first-time buyer, that enable you to save and even subsidise the purchase of your property. There are different kinds of Help to Buy schemes, being government-backed schemes that offer different perks to potential buyers.
For one, the mortgage guarantee scheme lowers the bar for buyers, by allowing mortgages to be taken out with a 5% deposit. Meanwhile, a simple online search for ‘new build homes for sale’ will yield hundreds of new developments and properties, all of which may eligible for shared ownership and equity loan schemes – the latter of which can supply you with a loan worth up to 40% of a given new build’s value.
View a Range of Properties
Lastly, first-time buyers often fall into the trap of investing emotionally in the properties they view. This can make house-hunting a painful process, especially in a seller’s market where competition is high and bidding wars can quickly render previously-affordable properties inaccessible.
The solution is to view widely and often. Don’t hem yourself in with specific ideas of the perfect property; this is your first home, and likely not your last. All you need to ensure is that your essential needs are met and that the property is in good condition. The rest may fall into your lap or simply come with the next rung of your personal property ladder journey.
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