Getting onto the housing ladder is considered one of the biggest steps forward in life and a true mark of being a successful adult. While renting does have its benefits for young families and those with lives that are more flexible, it’s always good to eventually lay some foundations. But it is difficult to get your foot onto the property ladder, and the methods for doing so will differ based on your situation and even where you live. So, here are some tips for first-time homeowners.
Consider Your Savings
Saving as soon as possible is the first step. If you are able to, putting some savings away long before you need to use them could stand you in better stead in the long run. There are many bank schemes that help towards this. The government’s Help to Buy ISA has just closed, seeing half a million homes bought with the savings account that topped up your savings by up to £3,000 by adding 25% to your amount. But there are plenty more schemes similar to this which could benefit you. Beginning planning early could give you more flexibility when it comes to looking at placing deposits.
Plan Your Budget
The mortgage is a monthly outgoing, so proving that you can handle this with your incoming money is important. For young families, pooling salaries together can help spread the load and can enable you to look at higher price ranges. As the Trussle mortgage calculator shows with its estimate of how much you could borrow as a UK first-time buyer, combining yours and your partner’s salaries could result in a better rate and enable you to expand your property search. Proving you can budget with your current outgoings also gives you more credibility in being able to handle a mortgage and its repayments.
Do Your Research
One of the most important tips for first-time homeowners is to do your research. Patience is a virtue when it comes to scouring listings of properties and areas. Think ahead to factors such as secondary schools and potential public transport for when children are older and consider the area. The more you research about facilities and potential pitfalls of an area (is it at risk of flooding?), the better armed you are at choosing a property that won’t give you problems in the future. Choosing a house is a commitment that should not be entered lightly, and you should always visit and research an area before making any decisions.
It can be hard for young families looking for their first homes, but it is a rewarding experience. By planning ahead with your savings and leveraging the money you do save, you’ll be in a better position to shop for a mortgage. When it comes to finding the mortgage, looking at your salary and your partner’s income together could prove beneficial. While researching an area and homes in that area is crucial in order to find the right place to make such a big commitment to. Following these tips should enable you to have some peace of mind as you begin your home-owning journey.