Top tips for first time buyers
- 4th November 2007
- Property Tips
It isn’t easy to get on the property ladder, sometimes it might seem almost impossible, but follow these top tips and you might be surprised.
Clear your debts
Any debt will be taken into account when applying for a mortgage. Pay those with higher interest rates off first.
Make a note of what you are spending your money on; it might surprise you to learn that you are spending £40 a month just on coffee.
Work out a budget and stick to it
Work out a sensible budget and try to save a regular amount each month.
Save for a deposit
Try to save enough for at least a 5% deposit; it will make a difference in the long term by making your monthly payments smaller.
Avoid a higher lending charge
A higher lending charge is a fee some lenders charge for borrowers with a small deposit. Although the borrower pays this fee, they receive no direct benefit as a result; it simply enables them to borrow a higher loan to value (LTV) proportion from some lenders. Try to choose a lender who doesn’t have a high lending charge.
Don't overstretch yourself
Make sure the repayments are affordable before committing to a mortgage.
Shop around for deals
Compare interest rates and fees. A low interest rate might be made up for with a higher fee structure
Consider which type of rate will suit you best
In an uncertain market opting for a fixed interest rate allows you to budget without worrying about rates rising.
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