By: Sarah Williams

Buying a home is a big step, especially if it is your first time. The home-buying process can be complicated, so it is important to have a clear understanding of what to expect. This article will provide details on what first-time buyers should know before purchasing a property in England. 

The Process

The first step is to save a mortgage deposit. Most first-time buyers will need at least a 5% deposit for their mortgage. This can be a significant amount of money, so it is important to plan your budget and save as much as possible. 

Once you have saved a deposit, you can then find out how much you can borrow from a mortgage lender. Research your chosen area and to look for any financial assistance that may be available from the government. We can offer clear advice as to which buying schemes you may be eligible for and will check your affordability, so you have a good idea of how much you can borrow and which properties to look for.

After finding out how much you can borrow, we can provide you with a mortgage agreement in principle, sometimes called a decision in principle. This document provides reassurance to the seller you can afford the property purchase, outlining how much you can borrow from the lender. 

When buying a property in England, it is also important to consider the additional costs such as legal fees, advice fees and homebuyer survey costs. These expenses can add up quickly, so it is important to budget accordingly. 

Once you have considered all the costs, you can start searching for a suitable property. When you find a property you are interested in, you can make an offer, and we can help you find a solicitor for the legal process. 

After making an offer, it is important to get a home inspection. This will help to ensure that the property is in good condition and that there are no hidden problems that come up after completion. When your offer has been accepted, we will process your mortgage application. 

Finally, before you buy your first home, it is important to understand what not to do. Make sure to avoid making any rushed decisions, overstretching your budget, or not getting a thorough home inspection. 

First Homes Scheme 

This scheme was first launces in June 2021 and is aimed at first time buyers, key workers and local people. If you are eligible for the scheme, you can purchase a new build property at a 30-50% discount to the market value. When said buyers decide to move on and sell, this discount is passed onto the next buyer as a way to encourage a chain of opportunity for first time buyers to purchase affordable homes. The scheme is still emerging and only has a handful of developments currently available. However, with Help to Buy coming to an end, we could see an increase in popularity as we move further into 2023. 

Shared Ownership

Shared ownership allows prospective buyers to purchase a share of a property and then pay rent on the rest. As long as the share being purchased is between 25% and 75% of full market value, this scheme could be a viable option for many first-time buyers searching for a home. Additional shares of the home can be bought later down the line, which reduces the rent as the landlord owns less of the property. Shared ownership is an excellent option for many, however it is important to budget the monthly payment and the rent into your affordability.

 
Lifetime ISA

The lifetime ISA is a government initiative targeted at helping you save for your deposit. Using a Lifetime ISA enables you to save £4,000 a year of your own money. The Government then add 25% of whatever you save for that tax year – meaning you could gain up to £1,000 extra every year. The money must then be used to either buy your first home or to fund your retirement.

Do you need advice?

Buying a home can be a daunting process, but by following these steps, you can make sure that you have a clear understanding of what to expect and what to look out for. With the right preparation, you can find your dream home and get on the property ladder. If you need further advice or would like a mortgage appointment, give us a call.