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We know that getting that first foot onto the property ladder isn’t always straightforward and no two purchases can be the same. However, there are a number of things that you can consider and do before and during your purchase to make it go as smoothly as possible for you. We have put together a short first time buyer guide to help you if you are looking to purchase a property for the first time.
If you would like some advice or to have a chat with one of our specialists, then call or pop into your local branch.
When you look for your first home you will no doubt have a list of things you really want from it. Finding a property that meets every single one of your requirements is extremely hard, if not impossible, so you must be prepared to compromise. Weigh up all the things you want in your mind, divide them into essentials and desirables and be prepared to trade-off the things you don’t need.
Make sure to consider all possibilities and research everything fully before committing. Don’t forget non-property related things too, such as schools, travel routes, local amenities and medical centres. Read our area guides for a little assistance on some of these.
One of the biggest financial tasks you will ever face is saving for your mortgage deposit. Remember to budget for all the other associated costs of buying a home too, such as solicitors, surveys, removals, and possibly stamp duty.
Our expert mortgage advisers at Embrace Financial Services will be able to help you plan and budget. To get an idea, in the meantime, you can use our handy budget planner to see how much disposable income you may have for a mortgage or to save for a deposit.
The deposit
How much deposit you will need will depend of the value of the property you’re looking to buy. If you’re looking at the national average of £310,000 then a 10% deposit would be £31,000. However if the properties in your area are higher, for instance at £600,000 then you would need to have £60,000.
For some properties you can buy a house from as little as 5% with the government Help to Buy scheme.
With a Help to Buy: Equity Loan the Government will lend you up to 20% of the cost of a new build home, so you’ll only need a 5% cash deposit and a 75% mortgage to make up the rest. You won’t be charged loan fees on the 20% loan for the first five years of owning your home.
Find out more about Help to Buy
Generally, the more deposit you can put towards your property purchase, the better mortgage deal you are likely to be able to secure. The mortgages with the lowest, and therefore the best interest rates will only available if you have a large deposit. Mortgage deals also tend to work in 5% brackets so you are eligible for the better deals every time you hit these amounts; 10%, 15%, 20% and so on. There is usually no difference in rate if you have 17% rather than 15%, but an adviser will be able to talk you through it.
Talk to Embrace Financial Services
Savings accounts
When saving a large amount of money, it’s best to put it into a savings account, preferably one with limited access. Do your research and see what banks or building societies offer the best interest rates in order to make the most of your savings.
Keep track of your spending
It’s a good idea to try and keep a list of what you spend, when you spend it and what on. There are plenty of smartphone apps out there to help, or even a basic spreadsheet will do. This helps you to see where you can make savings and helps you focus on the goal. If it helps, allocate yourself a set amount of spending money each month, week or day and give it to yourself in cash every day. Any leftovers can go in a pot for the rest of the period.
Cut down on non-essentials
Keeping track of your spending will also help you identify any non-essentials you might be wasting money on. Whether it’s an unused gym membership, extra nights out, or even take-away coffees, every little saving can help.
Extra income
If you have the time, can you take on a part-time or evening job? Anything you can do to hit your target, do it. It’s only for a short while and you’ll be so glad you sacrificed some time. Be sure not to overdo it though.
Set realistic targets
Set yourself ‘realistic’ targets to stay focused on them. If you try to give up things that you need or cut back too far then you’re more likely to have to dip into your savings.
Most people cannot afford to buy their home outright from savings and will need a mortgage to fund the purchase. A mortgage is a loan secured on a property. You will be required to put down a deposit and you will need to apply for a mortgage to cover the rest of the purchase price.
You then need to repay the mortgage to the lender. Usually this is done in monthly instalments over the term of the mortgage.
Banks and building societies offer a range of mortgages with different loan amounts and interest rates. A mortgage specialist like Embrace Financial Services can search the market to find the most suitable deal for you.
There are a number of affordable options available when you’re looking for your first mortgage:
Specialist mortgages
Some lenders will offer specific mortgages tailored to first time buyers. Often, they will only require a small deposit.
Help to Buy
Help to Buy is a Government scheme aimed at helping purchasers with limited deposits. You secure as little as a 5% deposit on a property. Find out more about help to buy
YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
Embrace Financial Services usually charges a fee for mortgage advice. The amount of the fee will depend upon your circumstances and will be discussed and agreed with you at the earliest opportunity.
Take time and write a list of the areas that you want to live in. If you are moving to an area you don’t know, discuss with a local estate agent who can advise on the best areas, and even specific streets to look at to match your requirements.
Properties are usually posted on the main portals, social sites such as Facebook and estate agent websites so make sure you sign up for property alerts.
You can register for JNP property alerts by setting up a My JNP account.
When viewing a property you will likely get a ‘feel’ for whether or not it’s for you straight away.
However it’s best to have a practical approach to the viewing. Does it meet your criteria? If you’re compromising – is it to a level you would be comfortable with?
Make sure to ask questions. This is the biggest financial commitment you will make so you need to be sure it’s for you. If it’s your second viewing then make sure you do a more thorough viewing. Check windows, heating, look in cupboards and check walls and floors. Make sure you know what’s included in the sale and what will be going with the vendors.
We have more information on what to look at on a viewing in our Property viewing tips.
Knowing how much to offer is tricky. Some vendors will be expecting the asking price whilst others will be open to negotiation.
If the property has been on the market for a while or you think there are areas that would need work then you could offer lower than the asking price. However, if the property has just come to market or they’re in no hurry to sell then they may be prepared to hold out for a higher price.
The vendor’s estate agent will be able to give you a steer on what the vendor has asked for.
You could also get a better price for the property if you’re a first time buyer or not in a chain as this is likely to speed up the selling process for the vendor. It’s also better if you already have a mortgage in principle in place.
You need to make sure you’re making the right decision based on your heart and your head.
Here are a few of our top tips to help:
Try to walk or drive past the property before the viewing. Is there parking available? Is the street busy? Make sure you view the area at different times, a street that is quiet during the day could become totally rammed during rush hour.
You can also check the distance from the property to key locations such as work or school, and what amenities are in the local area.
Lots of agents offer virtual viewings where you can view the property from the comfort of your own home. This could be a property video or a 3D virtual tour. Both of these options could give you an early feel about whether or not you want to visit the actual property.
You can take a virtual tour of the area too using Google street maps and Google Earth. This will help you see what else is in the local area.
Before you go make a list of all the things that are important to you in the property. You can also make a list of questions that you want to ask. That way you go in knowing your priorities and can refer to them throughout the viewing.
If you can, take someone with you. This could be a friend or family member. Not only is this safer, but it’s always helpful to talk to someone about your thoughts about the property and the area. You will be able to bounce ideas off them and get a second opinion.
Check the outside first
Does the property have curb appeal? Is there parking? What does the brick work, guttering and roof look like? Have a look at the garden if there is one, what is the soil like? Is it prone to flooding? Are there any trees with Tree Preservation Orders (TPOs)? Where are the boundaries and what are you responsible for? Whilst any issues will be picked up at a survey, it’s good to have your own look first.
Have a good look inside
Is it the right layout for you? If not are there options to renovate? What condition are the kitchen and bathrooms in? Where are the heaters? Are they in good working order? Check the windows are in a good condition.
Don’t be afraid to ask when things like heating and windows were last maintained or replaced. Check the corners of rooms and around windows for signs of damp. Has the property recently been decorated? Can you look in the loft or any outbuildings?
Plumbing – how long does it take for hot water to come through, how efficient is the boiler? When was it installed and last serviced? Is there a service record?
Planning permission – has any work been done on the property that required planning permission? Do they have all the certificates? Do they have any guarantees for the boiler or windows if they have recently been replaced.
Bills – it will help to know what average costs are for the various bills, this will include council tax, energy bills and water rates.
What will be included – find out what fixtures and fittings are included in the sale, for example carpets, cooker, curtain poles.
The more you know the easier it is to understand what is likely to happen, and if there is a good rapport they may consider you favourably.
You could also talk to the neighbours to get a feel for who they are. They may be able to give you top tips about what they like and don’t like about the area before you commit.
Whilst the agent will be working for the seller, you can talk to them about the property and others in the area as they will be the the local property experts.
Don’t rush to make an offer, even if there is pressure to do so from the agent or seller. Make sure you think through whether the property is really right for you. Check your list and compare against your wants and needs. Only make an offer once you’re sure it’s right for you.
Good luck!
Moving home, while no doubt an exciting time, can also be a period of great stress. Between moving all your belongings and getting your paperwork in order, there can be a lot to remember and get on with. To help you, we’ve put together a short guide to assist with planning your move.
Moving home, while no doubt an exciting time, can also be a period of great stress. Between moving all your belongings and getting your paperwork in order, there can be a lot to remember and get on with. To help you, we’ve put together a short guide to assit with planning your move.
You will already have discussed target dates for completion but at the right time you will need to agree the actual date for your conveyancers to exchange and complete.
Where possible we recommend keeping clear of peak times such as bank holidays, end of school terms and even Fridays.
Your buyer’s conveyancer electronically pays off the remaining balance of the purchase price to the seller’s conveyancer. This is known as completion. Once the money is received by the seller’s conveyancer, they will inform the estate agent that the keys to the property can be released. Once you have the keys you can now move in and start to enjoy your new home. If you have any queries on the day we will be there to help you.
There are lots of reasons why you might want to purchase a new build property, from their energy efficiency and simpler buying chains, to long warranties and modern building.
The purchasing process is slightly different from others houses, however, so we’ve created a handy guide to help you know what to expect.
There are new build developments all across the UK, so you will have lots of location options. Do your research and contact your local branch for help finding the perfect one for you.
New developments will often have open days that come with an incentive, such as help with moving costs, paid stamp duty, or part-funding a deposit. These incentives can help make moving even easier for you so make sure to ask the sales consultant.
Even if the development isn’t fully built yet, you should be able to see a show home that will be very similar to your finished property. When you visit your consultant they will be able to advise on anything that doesn’t come as standard. This is a great chance to get a feel for the property, and it’s worth going to a walk around the rest of the development as well.
Depending on the development you’ve chosen and how far along building work is, you may be able to choose finishes such as kitchen tiles, work tops and flooring options. You will need to reserve your home early and double check with the developers regarding this.
Fraud continues to be a major threat to most of us, when a criminal chooses to act illegally or deceptively to gain access to money, data, personal items or property for their benefit. Here we provide details of two different kinds of fraud that exist in the property market – and what action could be taken to prevent it.
Conveyancing Fraud usually occurs on the day of completion of a property transaction. Fraudsters will send a spoof email that mimics the parties involved in the transfer of money; usually the conveyancing solicitor. Using this method, criminals aim to persuade the buyer to use alternative bank details, to those they already have, and pay monies for the purchase of the property into this ‘new’ bank account. The bank account will be owned by the fraudster and, if the payment goes ahead, the money will be stolen.
To prevent Conveyancing Fraud, it’s worth reading information provided by the Law Society here which includes valuable advice including, for example, calling your solicitor – or known contact – by phone before transferring any payment. This ensures the solicitor has requested it and allows for payment details to be checked.
Property title fraud is when criminals steal a property owner’s identity or use false documents, to illegally transfer property into their name, fraudulently updating HM Land Registry details. Once ownership is transferred the fraudster can sell the property or raise a mortgage against it – often deceiving solicitors and other parties involved in the process. Properties that are empty for long periods of time, including holiday lets, can be more susceptible to this crime.
There are ways to prevent property title fraud including setting up property alerts via HM Land Registry or placing a restriction on the property to avoid it being registered for sale.
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