We’re seeing encouraging signs for first-time buyers, with high loan-to-value lending becoming more widely available and a broader range of mortgage options now on the market.
As part of the Beresfords Group, our experts at Flagstone Financial are helping first-time buyers understand their options and prepare for their first step onto the property ladder.
The average age of first-time buyers has risen gradually over recent years, with many people now not being in a position to buy until their mid-thirties. However, with more homes available and lenders offering greater choice, we believe there are positive opportunities for those who are ready to make their move.
John Lineham, Managing Director at Flagstone Financial, said: “First-time buyers shouldn’t put their plans on hold by waiting for the absolute perfect time market-wise to get onto the property ladder, but reassuringly what we’re seeing at the moment is a property market in a healthy position, with more homes available, and lenders offering more tangible opportunities, giving buyers more choice.
“Affordability is still a key consideration, but currently first-time buyers have access to competitive rates and great first-time buyer products available from lenders. I would advise anyone planning on buying a home to work with a broker to act as an active advocate, and help you make the most of what’s out there.”
If you’re considering buying your first home, here are six key things we recommend thinking about before you start your search.
Make sure you’re financially ready
Before you start viewing properties, it’s important to make sure your finances are in good shape.
You may already have saved a deposit, but it’s also worth checking your credit score and understanding how the size of your deposit could affect the mortgage rates available to you.
First-time buyers can currently benefit from 0% Stamp Duty on properties up to £300,000, but there are other costs to consider beyond your mortgage payments. Legal fees, surveys and moving costs can all add up, while mortgage fees, insurance, maintenance and furnishing should also be factored into your budget.
Having a clear understanding of what you can comfortably afford will help you approach the property search with greater confidence.
Get a mortgage agreement in principle
We recommend considering a mortgage agreement in principle (AIP) before making an offer on a property.
An AIP gives you a clearer idea of how much you may be able to borrow and can help you set a realistic budget when you begin viewing homes.
Having one in place can also demonstrate to sellers and estate agents that you are a serious buyer, potentially putting you in a stronger position when it comes to making an offer.
Keep your property search flexible
When you start looking for your first home, it can be easy to become focused on one particular area or type of property.
However, keeping your search flexible can significantly broaden your options. We recommend considering neighbouring towns or alternative postcodes where your budget may stretch further, as well as looking at different property types.
Being open-minded about location, layout or price could help you find a property that offers better value and meets more of your needs.
Work with an expert early
Understanding the mortgage market can be challenging, particularly when you’re buying your first home.
Our colleagues at Flagstone Financial recommend speaking to a trusted mortgage broker early in the process. A broker can help you explore first-time buyer schemes, monitor changes in mortgage rates and identify the latest lender deals that could suit your individual circumstances.
They can also help you understand how changing interest rates could affect affordability, giving you a clearer picture of what you may be able to borrow.
Focus on personal readiness, not market timing
It’s understandable that first-time buyers may be tempted to wait for the ‘perfect’ time to enter the market. However, trying to perfectly time the property market can make it difficult to know when to take the next step. Instead, we recommend focusing on your own circumstances and whether you’re financially ready to buy.
The current market is in a positive position, with more homes available and lenders offering a wider range of first-time buyer products, meaning there are encouraging opportunities for those who are prepared.
Budget for the costs beyond your deposit
When calculating how much you can afford to spend on your first home, it’s important to look beyond your deposit. As well as legal fees, surveys and moving costs, you should consider mortgage fees, insurance, maintenance and furnishing your new property.
Building a financial buffer into your budget can help ensure you’re prepared for unexpected costs and make the transition into homeownership more manageable. Buying your first home is a significant milestone, and taking the time to prepare your finances and understand your options can make the process much more straightforward.
With more mortgage products available and greater choice for buyers, our experts at Flagstone Financial can help you understand the options available and find a mortgage solution suited to your circumstances.
For further market advice or to discuss your mortgage options, contact us or find your local branch.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
Availability will depend on your individual circumstances & credit history. Flagstone will charge a fee for arranging your mortgage, in the region of £299, payable on application.
