The process of getting your very first property is an exciting time. Whether you are doing this alone or with somebody else, it’s definitely a time to celebrate. However, it isn’t always easy to put your foot on the property ladder.
At Fisher Wrathall our blog this week looks into first time buyers and how to take your first steps into the Lancaster and Morecambe housing market.
Costs of Buying
Despite all the excitement of becoming a fully-fledged homeowner, there are a few things to consider. One of the biggest is costs with several payments to make during the course of buying. Most often this includes:
- Property Price
- Stamp Duty
- Survey Fees
- Mortgage Arrangement
- Any Decorating and Furnishing
All of these costs will vary massively depending on your position, house price and deposit. However, they all need to be considered. This will keep you ahead of the game and make sure that you are prepared for the process.
Bank of Mum and Dad
When it comes to buying a house, securing the deposit is by far the hardest part. Once you’ve decided that owning a home is for you then it’s important that all finances are in place. In most cases, the bank of mum and dad is the place to go.
It’s no wonder that parents have become the 10th biggest mortgage lender in the UK. On average £24,000 is gifted or loaned to children from their parents, giving them the boost they need. The total contributions come to an estimated £6.3 billion which is huge.
Another way that parents can help is to act as guarantors. This can be risky and shows just how far some families will go to give their children the best start in the ladder. It’s easy to see why they do this with rising costs of living, rent and more.
Saving Over Time
It’s often harder than it looks, but saving over time is the best option for many. Not everybody has a helping hand available and it can take years to build up a sizeable deposit. The Mortgage Advice Service has some great tips on how to do this, from looking into a savings account to working out how much you can safely put aside each month.
Luckily, there are some other options available. Schemes such as Help to Buy and Shared Ownership are around and offer an alternative. On top of this, more banks are starting to offer 95% mortgages. This means that rather than putting 10% down, you’d only need to put 5%. To put this into perspective, a house costing £140,000 would need a deposit of £7,000 rather than £14,000.
The Brexit Shadow
It’s hard to avoid Brexit, especially as the October deadline is incoming. Unfortunately, the housing market is no stranger and has shown some impact in the last few months. August was no different and according to Nationwide, the average price of a house continued to drop once again. On top of this, the number of buyers making a purchase has also stalled.
However, it isn’t all bad news. The Bank of England revealed that mortgage lending is actually up from previous months. In fact, it’s at the highest levels for a decade. In July there were over 95,000 approvals giving more the chance to take their first steps.
Securing Your First Home
This time of year is an incredibly popular time to buy, with many wanting to complete purchases as quickly as possible before Winter. The benefits of our current climate can definitely be felt by first time buyers and it is the ideal environment to find your perfect home.
At Fisher Wrathall we are one of the leading estate agents in our local area. Our team are always on hand to help and are happy to give you advice or guidance as a first time buyer.