According to the national statistics, the UK average house prices increased by 10.6% over the last year.
It might be a challenging time to buy a home, especially if you are a first time buyer. Yet, there are plenty of things you can do towards to become a homeowner!
Decide what home you want to buy
There are plenty of properties on the market, all you’ve got to do is to search different property websites.
Can’t find what you are looking for? Not a problem. Many property websites can let you know when the right home comes on the market.
Don’t forget to check off market properties. They may turn from being off the market to becoming on the market with sooner then you expect it – or you can start the conversation about an off market home you like through Houso and our off market portal!
Improve your credit score
While you are deciding what home you want to live in, check your credit history. Let’s be honest, how many of first time buyers have enough cash to buy a house? Not many, unfortunately. The majority of people still rely on a mortgage. Having a good credit history is extremely important to get the mortgage approved.
If you are a first time buyer there are several ways you can improve your credit score:
- Make sure you’re on the electoral register.
- Always make debt repayments on time.
- Close credit card accounts you no longer use.
- If you’ve never borrowed before, take out a credit card and pay off the balance IN FULL each month.
Save a bigger deposit if you can
When it comes to monthly savings, why not consider setting a realistic target. Look at your monthly income, and work out how much you can save each month. Then open a savings account and put your monthly savings into it as soon as you get paid so you’re not tempted to spend it. You can look at opening an ISA account. Some of them are specifically designed to help first time buyers, we’ll talk more about it a bit later in this blog.
You can always talk to your bank about the best savings account for your situation – you can even make interest on the money you put it meaning a little extra for all the new home decor!
It may be worth to look at at your lifestyle and make changes. If these changes mean to sacrifice some luxuries, remember – this is just temporary!
Keeping track of your budgets is just as important. Many banks now offer help to keep on top of your spendings and savings. Make the right move – talk to them!
Top up your deposit for free
A deposit is often a huge stopper for first time buyers. With everyday costs flying higher and higher, it can feel like your savings target is miles away. This is where the Lifetime ISA can help boosting savings by up to a maximum of £1000 each year.
There are enough lenders out there to offer you this service as long as you meet their requirements. Please check these requirements before applying. The rejection of the application can affect your credit score.
Remember the extra fees
How many of us forget to include solicitor’s fees and moving costs when calculating the final amount? Many!
These additional extras can be as much as £1,000-£2,000. If you buy your first home, have this amount sat aside so the additional costs will not catch you in surprise.
There plenty of properties on the market. Most of the sellers are eager to sell their houses as quickly as possible so they can move on with their life. Don’t be shy to negotiate. If the property you like needs some improvement works, you can haggle that off the price. Remember, sellers love first time buyers as they know that the process will be smooth. Have that to your advantage, make the right move – negotiate!