Buying your first home can be daunting, let us help by busting a few common first time buyers myths.
Do I need a six figure deposit?
Much has been made recently of the average first time buyer deposit in London exceeding the £100,000 mark. But how true is this statement?
There’s no question first time buyers in London have to find a significant sum to get on the housing ladder. But, depending on the type of property you’re looking for and the area of London in which you are searching, deposit levels don’t need to be anywhere near six figures.
Recent official data points out that the average price for a first time buyer property in London is £422,380. With hundreds of mortgages available to first time buyers requiring just 10% or even 5% deposits, first timers can realistically expect to need a deposit of between £21,000 and £43,000.
Of course, there are other costs to consider such as stamp duty, legal, survey and moving fees, but even with these added outgoings, buyers can rest assured they don’t need six figures in their pocket to start thinking about taking their first step on the housing ladder.
Search hundreds of properties on our books with asking prices under £425,000.
Is the lowest mortgage interest rate always the best?
A low interest rate does not necessarily mean the mortgage offers you the best deal. Other factors should be considered such as; whether the rate is fixed or variable, how long the rate is fixed for, the length of the repayment term, and the level of any upfront fees. Consulting a mortgage consultant is a great way to ensure you are getting the best deal for your situation.
Will I find the perfect house?
Unfortunately, there is no such thing as perfect when it comes to property and there will always be compromises to make. It’s important that from the outset of your property search you prioritise your criteria in order to understand where you are prepared to compromise.
If have a good income will I be able to secure a mortgage?
Income only forms part of the lender’s decision making process. Deposit level, affordability stress testing and credit history are also key components. If you earn £60,000 but have a bad credit history, you may find yourself less appealing to a lender than someone with a perfect credit score and an income of £40,000. A mortgage consultant will be able to look at your whole financial situation and guide you on the lenders and mortgages that are best suited to you.
Do I qualify for shared ownership or Help to Buy?
There are several schemes available that have been set up to make buying a home more achievable if you are finding it difficult to save for a deposit.
The Help to Buy equity loan scheme is available to first time buyers as well as homeowners looking to move. The home you want to buy must be newly built with a price tag of up to £600,000.
You are eligible to buy a home through a shared ownership scheme if you’re a first time buyer with a household income of £60,000 or less.