I have recently purchase my first home and I know for some people this is quite a daunting task. There is so much to consider and I have decided to write this blog in an attempt to make it easier for first time buyers to understand the whole process of buying a house.
After finding the house I wanted it was important to ensure I could afford the property, mainly the mortgage repayments. In order to obtain the mortgage, I needed to make sure I had a suitable deposit in order to secure the lending. After doing some research I learnt that a deposit should be between 5% and 20% of the purchase price. I thought the larger my deposit was the better mortgages I would have available to me, but getting 20% was proving quite difficult for me.
There are options available to you in order to save up a larger deposit, especially for first time buyers. There are Help to Buy ISA schemes that can be set up, specifically designed for first time buyers. These are savings accounts available at nearly all banks and as you save more money you will be entitled to a bonus when you cash it in to buy the house with. This bonus is paid by the government so it is always worth doing if you are able.
In addition to Help to Buy ISA’s you could also receive a gifted deposit, which is exactly what it sounds like. Anyone can gift you some money towards a deposit, usually this would be parents or close family members.
If you are able to set up a Help to Buy ISA along with a gifted deposit you can suddenly grow your 5% deposit into something much larger and this should make obtaining your mortgage easier and hopefully get better rates.
I hope this has helped some of you feel better about getting the money together to buy your home. Please read on and I will begin to explain the process of instructing solicitors and the start of the legal process of buying your house.