October 5, 2023
Buying your first home is a major life milestone, and while the process can seem overwhelming at first, understanding the key steps can make it much more manageable. With the right guidance, you'll feel more prepared and confident throughout the journey. Here’s a breakdown of what to expect and how to get started as a first-time buyer.
Before jumping into property viewings and imagining your dream home, it’s essential to take a close look at your finances. Knowing where you stand financially will help you understand what you can afford and what your financing options are.
Buying a home comes with some significant upfront costs, including your down payment and legal fees. These expenses can add up quickly, so it's important to figure out how much you can realistically save before beginning your search.
Review your current expenses and financial commitments. Identifying areas where you can cut back will help boost your savings. Plus, when applying for a mortgage, lenders often check your recent spending history—so smart budgeting now can help prevent issues later.
Your credit score plays a big role in your mortgage eligibility and the interest rates you’re offered. Get a copy of your credit report to see where you stand and make improvements if needed, such as paying down debts or correcting errors.
Not everyone needs a mortgage to buy a first home. For instance, if you’ve inherited a property, selling it could fund your purchase. If you need to sell quickly, companies like We Buy Any House can help by offering a fast, cash-based sale.
With rising living costs, buying your first home can feel out of reach. Thankfully, there are several government-backed schemes designed to help first-time buyers get on the property ladder.
This option lets you buy a share of a property and pay rent on the rest. Over time, you can increase your ownership share, working towards eventually owning the home outright. It’s a helpful route if you can’t afford to buy 100% of a property upfront.
This scheme offers newly built homes at a discounted price—typically 20% below market value—for eligible first-time buyers. Conditions apply, including age and income limits, and the home must be your main residence. It’s designed to make homeownership more accessible, especially for younger buyers.
Mortgages can feel complicated, especially when it’s your first time. There are several types of mortgages available, each with its own pros and cons. Here are the most common ones for first-time buyers:
With a fixed-rate mortgage, your interest rate—and monthly payments—stay the same for a set period, typically 2–5 years. This stability can make budgeting easier, which is why many first-time buyers prefer this option.
Tracker mortgages follow changes in the Bank of England’s base rate. Your payments can go up or down depending on interest rate movements. While they can offer lower rates, there's also the risk of higher costs if interest rates rise. This type might suit buyers comfortable with a bit of financial flexibility.
Offset mortgages link your savings account to your mortgage, reducing the interest you pay. You won’t earn interest on those savings, but you also won’t pay mortgage interest on an equivalent amount of debt. While many first-time buyers use their savings for the deposit, family offset mortgages allow relatives to help reduce your loan amount using their savings.
Choosing the right mortgage depends on your financial goals, risk tolerance, and how long you plan to stay in the home.
Once your offer on a home is accepted, the next steps include hiring a conveyancer and arranging a property survey.
A conveyancer handles all the legal aspects of transferring ownership. They make sure everything is in order, which helps prevent delays and ensures the sale goes through smoothly.
While not mandatory, a survey is highly recommended. A professional surveyor will inspect the property and highlight any structural issues or needed repairs. This step can save you from costly surprises down the road and help you make an informed decision.
Taking both these steps seriously will reduce risks and make the entire process more seamless.
As you approach the finish line, the final stage is the closing process. This involves signing the final paperwork and ensuring all payments and legal requirements are completed. Stay in close contact with your solicitor and mortgage provider to keep everything on track.
Once all conditions are met, you’ll receive the keys—and officially become a homeowner!
