In a country where home ownership is a reality for nearly two-thirds of the population – higher than many European countries, including Germany, France, and Switzerland – it’s no wonder that a successful industry has been built around it since the early 1800s. Known as stewards in the beginnings, and estate agents later in the early 20th Century, there are now approximately 16,500 agencies in the UK, all here to assist with buying and selling homes.
For the third living in rented accommodation, with parents, or even on water, there may well come a time that home ownership becomes the goal, or maybe that time is now for some of you. Here we offer up some sound advice for first-time buyers.
1. Budget
We don’t just mean budgeting. Of course, making sure that you’re sensible with your disposable income is a top priority, but information on how to make your money go further is not hard to find. Less avocado toast, more investing, apparently. What’s really important is knowing what you can afford. Talking to a financial advisor or mortgage broker is your first step before the first rung on the ladder. Typically, borrowing amounts to four-and-a-half times your salary, plus your deposit on top. Although a handy basic calculation, an expert will take into account a variety of lenders, and options such as mortgage term, affordability, and interest rate. You may be pleasantly surprised… Most mortgage agreements last 6 months, so you’ll have plenty of time to get house hunting.
2. Wants v Needs
You probably want as many bedrooms as you can afford, a new kitchen, and a huge garden, but it’s wise to narrow down your absolute needs against your wants. If you work from home, a second bedroom is ideal, but if you work at the office, do you really need that extra space? Is it worth keeping your mortgage borrowing low, and replacing the kitchen in a year or two’s time when you have the cash? Location is something that you can’t change without moving, but cupboard doors are. Is the maintenance of a big garden something that you can factor into your day-to-day life?
3. Fees
It’ll come as no shock that you’ll be spending more than just the price of a property. Buying a home comes with high expenditure, including searches, surveys, solicitors, Stamp Duty, and possibly service charges (things beginning with S it would seem). Make sure to research all aspects so that you’re fully aware of additional outgoings during the process. We can recommend someone for every stage of your journey!
4. Leg(al) work
Now this is the time-consuming part. You might stumble across your perfect property quickly, but it takes time before it can legally be yours. The legal work for buying a home is called conveyancing, and it’s a somewhat complicated combination of organisation, co-ordination, regulations – and paperwork! Your conveyancer will know the process inside out, and between them and the selling agent, any questions that you have will be answered. All that usually take a few months, so it’s best to be available to answer any questions that they may have as soon as you can to keep things ticking along steadily until completion.
If you’re ready for a first-time purchase, please get in touch with Orchards on 01525 40 22 66 or email ampthill@orchards.co.uk.
