For the first time since in 7 years, despite stricter mortgage rules being put into place, mortgage lending for first-time buyers is at its strongest level ever.
Buying your new home doesn’t have to be difficult but it is daunting for some. We understand it’s the biggest purchase you will make in your lifetime so get the right advise from professionals and follow this process of buying a new home.
So if you think now is the time for you to join the ever growing number of first-time buyers, there isn’t a better time, so here are some of our top tips to help you get on the first step of the property ladder.
Getting a Mortgage
The first step to buying a house is to look at your mortgage options and the likelihood of how much you will receive. There are two different ways you can repay your mortgage, typically these are Repayment mortgages and Interest Only mortgages.
A repayment mortgage is one of the simplest and most common mortgages for a first-time buyer to take out. Each monthly payment pays off a little of the mortgage as well as the bank loan to ensure at the end of the mortgage it is all payed off.
Interest only Mortgage
An interest only mortgage may seem the more affordable option and the more popular choice with first-time buyers but ultimately will involve a large lump sum at the end of the mortgage period. Each monthly payment pays off only a section of the interest and leaves the buyer to repay the capital at the end of the term, how you pay this is up to you and most buyers do not think about this when they take out the mortgage.
Find out more about the buying process here
Help to Buy Scheme
The Help to Buy scheme is a government run scheme which can help those looking to move home and allow them to pay a deposit as low as only 5%. The scheme is available to anyone and is highly favoured by first-time buyers due to the low deposit and lower price to pay overall.
New Figures show that in the past 8 months, around 3750 approved applications has went through and this has resulted in thousands of sales of Scottish homes through the help to buy scheme. With over 500 of these sales being in the West of Scotland including our area of Lanarkshire..it is helping grow areas of housing which were previously struggling.
Find out more about the help to buy scheme here
Once you have your mortgage in place, it is time to decide what your budget is for a house as it is not only the deposit you have to find money for but it is your monthly payments for your mortgage and your regular household bills. When you go through the mortgage process, you will be taken through a strict regement that looks at your bills, your leisure spending and even down to how many apps you buy on your phone or your Netflix subscription. By doing this it gives you a realistic look at how much you will be able to afford on a house and will allow you to look at houses you can afford rather than struggle with one you cannot.
Eat out for lunch at work? Switching to bring in a sandwich from home can save you around £4 a day or £80 every month.
Your average coffee shop coffee can cost in the region of £3 and upwards. By switching to coffee in the workplace, you can save yourself up to £60 a month.
Have a gym membership you have never used but don’t have the guts to get rid of as you are ‘going to start Monday’? Switch to running and walking outside with simple exercises you can do at home and you can save £30 a month that you are otherwise wasting.
Simple changes can save you a lot of money. You don’t need to cut down on everything to afford your new mortgage but straight away by taking lunch to work and getting rid of that pesky unused gym membership, you have already saved yourself £150 a month which could be put towards your new home.
Finding your dream home
You may have your heart set on a luxurious, 5 bedroom, 3 bathroom, semi-detached in the countryside, you need to be realistic and find a home that suits both your lifestyle and budget. We have several houses for sale all over lanarkshire and have many more coming onto the market everyday to suit every budget.
For a sample of some of our houses, see our property pages here.