Essential Tips For Buying Your First Home

Conrad Nolan
Nov 11, 2024
4 min read

First-Time Buyer? Don't Go It Alone!

So, you're thinking about taking that exciting leap onto the property ladder? Congratulations! Buying your first home is a huge milestone, but let's be honest - it can feel incredibly daunting.

That's where I come in. As a mortgage advisor, I've helped countless first-time buyers like you find their dream homes with minimal stress and confusion. Think of me as your trusty guide, here to walk you through every step of the process.

But before we dive into the nitty-gritty, here are a few essential tips to keep in mind:

two sets of hands carefully holding a home together

1. Get Advice Early (Like, Really Early!)

Seriously, don't wait until you've found your dream home to start thinking about mortgages. Talking to an advisor early on can be a game-changer. I can help you figure out what you can realistically afford, explain all the jargon (and there's a lot of it!), and find the best mortgage deal to suit your needs. I've helped people buy sooner than they realised as well as helped them get that home they thought was just out of reach. Until you get advice, you don't know what is possible.

2. Your Credit Score: It's More Important Than You Think

Think of your credit score as your financial report card. Lenders will scrutinise it to see how responsible you are with money. Before you even start house hunting, get a copy of your credit report. Be warned, not all reports are equal, there are three different agencies in the UK, and lenders use different ones, with some using more than one report. I recommend using CheckmyFile as this gives you a full report from all three. Make sure the information is accurate and take steps to improve your score if needed. A higher score unlocks more mortgage options and could mean lower interest rates.

3. Government Incentives: There are several!

Did you know there are government schemes designed to help first-time buyers like you? Things like Shared Ownership, the First Homes Scheme, and Lifetime ISAs can make that dream of homeownership a reality sooner than you think. I can help you navigate these programs and see if you qualify. Here are a few mentioned

Shared ownership

Shared Ownership helps first-time buyers who can't quite afford to buy a home outright. You buy a share (typically 10-75%) and pay rent on the rest. This means a smaller deposit and mortgage, making getting on the property ladder more achievable. You can increase your share over time, eventually owning it all. Find out more on the government website: https://www.gov.uk/shared-ownership-scheme

Lifetime ISA

A Lifetime ISA (LISA) is a fantastic way to save for your first home or retirement. The government adds a 25% bonus to your savings each year, up to a limit. So, if you save £4,000, you'll get an extra £1,000 from the government! You can use it towards a deposit on your first home (up to £450,000) or withdraw it after age 60 for retirement. For all the details and eligibility, check out the official website: https://www.gov.uk/lifetime-isa

First Homes scheme

The First Homes scheme helps first-time buyers in England get on the property ladder with a discount! You could purchase a new-build home for 30-50% less than its market value. This makes homeownership more affordable, especially for those struggling to save a large deposit. Find out if you're eligible and how it works on the government website: https://www.gov.uk/first-homes-scheme

Other Schemes & Support:

It's worth noting that there might be other regional schemes available depending on where you are in the UK. Don't hesitate to get in touch if you'd like to explore all your options and find the best path to owning your first home!

A couple sat in there new home surrounded by boxes celebrating their new home

4. Don't Just Budget for the Mortgage - Plan for the Unexpected Too!

Remember, your mortgage payment is just one piece of the puzzle. Factor in those ongoing costs like home insurance, council tax, and those inevitable repairs that pop up (trust me, they will!). And while nobody likes to think about it, consider protecting your income and your family with life insurance, critical illness cover, and income protection. It's all about having peace of mind in your new home.

5. Patience is a Virtue (and So is Asking Questions!)

Buying your first home is likely the most money you've spent on anything in your life, it isn't something you should rush into. Take your time viewing properties, and don't be afraid to ask questions.

Research the area - What is parking like outside? Schools in the area? Public transport links? Ask about the neighbours

Home maintenance - When was the boiler installed/last services, any repairs or renovations, extensions etc.

Why are they selling?

Check what energy efficiency rating the property has to help budget for bills.

Buying a home can be made to feel like a sprint when the estate agent is doing their job and encouraging you to get an offer in because of x, y and z - Estate agents work for the person selling the house, this is an important thing to remember in the process. Buying your first home isn't a sprint, it's just the start of an exciting marathon of home ownership that will likely last a few years before moving on to your next home.

So take your time, looks at as many options as you can, and bring a friend or family member, someone who is experience and can help you to look at things from a less emotional point of view and more pragmatic one.