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5 Top Tips For First Time Buyers

Saving Your Deposit

Your deposit is the lump sum of cash you put down towards the purchase price of the property. This combined with the mortgage will make up the purchase price you pay for the property. The minimum deposit available is 5% of the total house price. Interest rates are generally higher at this level because there is a bigger risk for the bank or building society to lend you the money. At 10% and 15%, rates get more competitive, so it’s important to consider your current position and your projections for the future when deciding on which deposit is best for you.

Understand What Schemes Are Available

There are several schemes available for first time buyers to help you cross the finish line. The government offers a range of schemes depending on your position, such as Help to Buy schemes, Shared Ownership schemes, Family Assist schemes and more. With such a range out there, some of the schemes are going to be more advantageous for you depending on your background.

Prepare For Additional Costs

When it comes to purchasing your first home, there are other significant costs to consider outside of the initial deposit. The list can be quite exhaustive, but here are just a few of the likely costs you’ll have to budget for outside of your deposit:

  • Solicitors fees – you will need to pay a solicitor to ensure the paperwork is up to scratch, take care of conveyancing and any other legal issues that might occur during the transaction.
  • Mortgage arrangements and booking fees – administrative costs paid to your lender. These will vary and we will advise what is most cost effective.
  • Furnishing costs – whether it’s installing the basics or making the home your own, you’ll need to consider the costs of furnishing your new home.
  • Removal costs – to transfer your belongings from your current residence to your new one.

Budget For The Long Term

As a first time buyer, it’s extremely important that you consider your budget going forward, outside of the mortgage cost. Remember, as well as your monthly mortgage repayments, there are other costs that factor into everyday living. The non-negotiables associated with your home are council tax and utility bills, but you’ll also want to think about the internet, telephone packages and other bills.

Seek an Advisor

There’s no doubt about it – buying your first home can be daunting. It’s going to be the biggest purchase of your life so far, so it’s important that first time buyers set themselves up to make informed decisions. Before you delve into Rightmove, see an estate agent or liase with the builders, it’s a good idea for you to seek advice on budgeting, costs involved, the process, things to watch out for and more.

By seeking professional mortgage advice, you’re empowering yourself to make the correct decisions for you, and, if you’re at that stage, your family. Buying your first house can be a tough, emotional time, and that makes it all the more satisfying when you claim those keys and begin settling in.

Get Expert Mortgage Advice With Home Financial NW Ltd

By taking the time to read this article, you’ve already taken your first step to seeking advice – well done! Take it further with Home Financial NW Ltd; we can offer you expert advice on getting your first mortgage. Whether it be helping you understand an Agreement in Principle or explaining the processes of credit checks (and how they could affect your application), our team is on hand to give you the best possible mortgage advice.

Give us a call on 01925 939170 to book an appointment or to out more. Alternatively, you can request a callback through our online form and we’ll be in touch very soon!



There may be a fee for arranging a mortgage and the precise amount will depend on your circumstances.
This will typically be £449 and will not exceed 1.5% of the loan.
Your home may be repossessed if you do not keep up repayments on your mortgage.
Home Financial NW Ltd is an Appointed Representative of Stonebridge Mortgage Solutions Ltd, which is authorised and regulated by the Financial Conduct Authority.

Approval Number: Sol8624

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