First Time Buyers Advice
For first time buyers, getting on the property ladder can be an extremely expensive task. In order to be successful as a first time buyer, it is important that you are aware of the different methods of purchase that are available to you.
The process starts by finding where you want to live: things to consider include transport links, council tax bands and charges and local jobs and careers information. Many first time buyers are now looking to new build homes and the purchasing schemes available, such as HomeBuy, that make buying a new home affordable for the first time buyer, as well as the incentive schemes offered by new home developers.
Methods of assistance in buying your first home
• Home Ownership Schemes
• HomeBuy Direct
• Shared Ownership
• Rent to Buy
• Housebuilder Incentives
• Auctions
Once you have found your new home then obtaining the finance to buy the house is the next step.
But you will also need to take into consideration the number of additional costs involved, such as legal fees, stamp duty, surveyors fees and a deposit. There are a number of first time buyer mortgages currently available but a deposit will be required, which generally is around 15% of the purchase price.
Top 10 tips
Those of you wanting a new home can benefit from current market conditions by securing favourable prices and good deals - as long as you are able to move quickly.
Follow New Homes Mortgage Helpline's ten point plan to come out on top of the new homes market:
1. Be prepared to move fast. Housebuilders save the best deals for those buyers who can move immediately, so make sure you are in the best position to negotiate on price.
2. Sort your finances - lenders are still lending! Contrary to popular belief, mortgages with decent rates are out there for buyers who have a ten to 15 per cent deposit. Housebuilders are willing to do deals, but buyers won't be taken seriously if they haven't organised finance in advance of trying to negotiate a deal.
3. Use Part Exchange to sell your existing home. In this market, new home buyers often find themselves unable to buy a new home because they can't sell their existing property. Remove the chain by part exchanging your current home for your new home, and let the housebuilder worry about selling it.
4. Talk to your housebuilder. The offer they are advertising might not be the right one for you, but they might be willing to negotiate. Buyers may find they can swap free white goods, for example, for free legal fees.
5. Consider a shared equity/ownership deal, where you own the property jointly with a Housing Association and the housebuilder. This is a great low-cost way to get onto the housing ladder and is open not just to key workers, but to any household with an annual income of less than £60,000.
6. Consider buying off plan. Housebuilders who want to generate early income on a development will often sell some, if not all, units off plan. This can be a great opportunity for customers to secure a favourable price.
7. Check for a building warranty from a body such as National House Building Council or Premier Guarantee. This guarantees the builder's work and ensures high standards are met.
8. Find out which soft furnishings and decorative extras the housebuilder is willing to include. Often customers can negotiate on carpets or curtains, and even choose the style of their kitchen if they reserve early enough.
9. Ask about mortgage protection insurance - housebuilders and mortgage brokers sometimes include it as part of the deal, offering peace of mind to today's homebuyers.
10. Visit a new homes portal such as WhatHouse.co.uk to search for new homes in your area; an overview of the best developer deals and editorial features and news on buying and selling.
See also: Shared Ownership And How It Can Help You Get Onto the Property Ladder
http://www.whathouse.co.uk/news/shared-ownership-housing-associations-first-time-buyers-968
How to Get on The Property Ladder as A First Time Buyer
http://www.whathouse.co.uk/news/first-time-buyers-new-homes-homebuy-scheme-965
