First-time buyers may be eligible for a grant or loan from the Government if they plan to buy an affordable home.
Some banks and building societies offer shared-equity mortgages, where part of the purchase price is met by a grant from one of these schemes. The borrower then buys a portion of the equity in the property from the lender.
- The first tip for first-time homebuyers is not to get in over their heads and buy a house that's too expensive.
- There are many steps to take before you sign on the dotted line, so here we've listed some useful tips for first-timers who want to buy their own home, whether it be a flat or a terrace:
- Get into the habit of saving regularly and putting money into a deposit savings account. You can use this to give you piece of mind that you'll be able to afford the mortgage repayments on your new home.
- Look at how much you can borrow and what interest rate (which determines monthly payments) is attached to it. This will depend on factors such as credit score, income and savings.
- Shop around as there are many mortgage deals to choose from and also try and find a deal that suits your needs best - such as those with longer or shorter repayment periods. You'll then be able to choose between a monthly or annual repayment plan.
- Be aware of the different types of mortgages available on the market. The more common types are fixed rate, variable rate, trackers, capped rates and discounted rates. Those with smaller deposits may want to consider an equity loan or shared-equity deal.
- Your agent will also be able to give you useful information and advice on mortgages, as well as the buying process in general. You can find out more about home buying from this source:
- The Council of Mortgage Lenders (CML) Advice for first-time buyers .
- Useful websites with mortgage advice include those run by: The Financial Conduct Authority (FCA) - Advice at a glance from the FCA , The Government - MoneyGuides or The Council of Mortgage Lenders (CML) .
- Those thinking about buying a smaller property should consider how little maintenance it will need and what bills may be cheaper too. Taking this into account can make buying a smaller home more affordable.
Please remember that the value of a property can go up or down, depending on local market conditions.
Approximate values are only given as an indication of the likely price someone might pay for a property in these locations. Movements in house prices may not reflect actual price paid by purchaser.