Top tips for first time buyers (if you’re still living at home)
With over 25% of British people who are aged 50 plus still having grown-up children living at home, the prospect of buying a home for the first time can seem unattainable. Getting together a deposit and the funds needed for your first home is definitely daunting but with a bit of forward planning and being honest with yourself about what you can truly afford, it’s not insurmountable. Here are some top tips that will help you get on the ladder:
You’ve got to be willing to save – if you’re still living with your parents then you’re in a better position to save money than if you’re currently renting somewhere. Most parents will cut their kids some slack when it comes to paying for household bills etc so you need to seize this opportunity. Put aside what money you can and open a cash ISA to start earning some interest. To ensure that you stick to this, set up a direct debit shortly after your pay day and watch your savings grow into a deposit.
Be realistic about what you can afford – many first-time buyers make the mistake of biting off more than they can chew. It’s important to remember that your mortgage isn’t the only thing you will be stumping up for. You also need to set money aside for stamp duty, survey fees, legal fees, removal costs, home insurance etc. And of course, once you’re in your new home, there’s all the household bills, council tax, water rates etc. The last thing you want is a crippling mortgage payment every month that leaves you no money for anything else.
Make sure your credit history is up to scratch – this can be the stumbling block for many would-be first-time buyers. Without a half-decent credit history, you’re not going to get a mortgage in the first place so start acting now if your credit history is poor. We strongly recommend that you review your credit report before applying for a mortgage and if it’s not what it should be, take the steps now to remedy it. This means paying any credit cards that you have on time (even if it’s only the minimum payment), cancel any credit cards that you don’t use anymore, don’t make multiple applications for credit and get yourself registered on the electoral roll.
For any help buying your first home, please get in touch.