According to Halifax, house prices increased by 1.5% over the last month, with an average home costing a whopping £227,871.
Getting yourself onto the property ladder and getting the best mortgage deal is one of the biggest financial commitments you’ll ever make.
There are many ways to save money and plenty of decisions to make when purchasing your first home.
Here Hannah Maundrell Editor in Chief of Money.co.uk exclusively share nine tips to help you get on to the property ladder with the Daily Star Online.
1. Get saving
Before you even start looking at properties you need to save for a deposit. Treat saving like paying a bill, set aside a certain amount each month and transfer into your savings straight away like you would with rent.
If you’re a first-time buyer, make the most of your savings with the Help to Buy scheme or consider taking out a Lifetime ISA. These products give you a government backed top up, making your money go further.
2. Check your credit rating
Don’t leave it until you’re applying for a mortgage to check your credit rating. Use a free online service like Noodle or ClearScore to find out what your credit score is.
If it’s low you’ve got time to make changes to help build your rating – simple changes like making sure you’re on the electoral register and updating all your recent address can make a real difference.
3. Find out what you could borrow
The amount you’ll be able to borrow will depend on a few factors including who’s applying and their current income. Using a mortgage calculator to work out how much you could borrow will help you narrow down your property search to the homes you’ll realistically be able to afford.
4. Start your search
Use sites like Zoopla to search for properties within your price range and in the area you want to buy. They will show you properties from lots of different estate agents which can help you get an idea of the current market and saves you time having to visit a number of sites.
5. View, view and view again
Go and see lots of different properties, even if they’re not “the one”, they’ll give you a good idea of what you want and what you don’t want.
When you find one you do like, view it a few times. Take along a friend or family member and get them to give your their honest opinion.
Be sure to go at different times as well, a great street on a Thursday afternoon could be a pain on a Monday morning.
6. Start looking at mortgages
You need to look at all your options before you commit. The length of a deal that you decide to go for will depend on the current interest rates and what’s right for one person won’t be for someone else.
7. Shop around
Don’t automatically take out a mortgage with your bank or building society. It may seem like the easy option, but the mortgage deal you get will make a massive difference to the amount you’ll end up paying back.
You could save loads by borrowing from a different lender so make sure you’re getting the right deal for you by making a thorough comparison before you commit to anything.
8. Work out the overall price
It’s not just interest rates you need to look at – some mortgages come with arrangement and application fees or early repayment fees.
Some lenders charge you fees, while others give you cashback.
You need to consider all of these things when you’re looking for a mortgage. What might seem like the cheapest option at first glance might end up costing you more once you take into account these other fees.
9. Think about other costs
Remember there are other fees that come with moving to a new house. You’ll need to budget for things like solicitor’s fees and a property survey.
Using a moving house checklist which will help you with a timeline of when you’ll need to pay for things, which will help you to budget for your first home
