Considerations for first-time buyers

Being a first-time buyer can be daunting. Not only are you about to make one of the biggest financial decisions in your life, but you’ll probably also have family members and friends offering their ideas on the right house, mortgage, lender conveyancer and even removal company for you.

We’ve put together some ideas to try and take away some of the stress and confusion and give you confidence to move through the home buying process as smoothly as possible.


Get the right advice

Of course we’re going to say that - it’s what we do! We’ll review your circumstances and look at your income, debt, day-to-day outgoings, employment and the size of your deposit, to assess what you can afford to borrow now and in the future. We’ll talk you through the types of mortgage we think are right for you and the lenders who offer them.

Save as much as possible

Buying a house is going to be expensive so it’s important to save, save, save and save some more to get yourself in the best position possible.

Many mortgage lenders will accept a minimum deposit of 5% of the cost of the house you’re buying but aim higher. The bigger your deposit the smaller the mortgage (and monthly mortgage payments) making you more attractive to a lender.

Know your budget

Your hard-saved deposit and monthly mortgage repayments aren’t the only expenses you need to be mindful of when buying your first home:

Some lenders will charge for a valuation fee to help them establish how much they are prepared to lend you.

You’ll also need to factor in the cost of a survey (depending on the type of property you’re buying and the lender you choose to go with you might need a basic mortgage valuation, a homebuyer’s report or a full structural survey).

In Scotland you also need to budget for Land and Buildings Transaction Tax and in Wales you’ll need to budget for Land Transaction Tax. If you live in England or Northern Ireland, you won’t pay any Stamp Duty Land Tax on properties worth up to £300,000.

You’ll also need to pay your solicitor or conveyancer for any legal work and local searches they do on your behalf.

Talk to us and we can help with practical financial advice on your first and future home purchases.

Your home may be repossessed if you do not keep up repayments on your mortgage

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