The process of buying a home for the first time can seem daunting, but it is a very exciting experience too. It is important that you are well prepared and informed when you buy a new property from the range of new homes for sale. It is essential to know which properties you can afford and how much money you can raise for a deposit, as well as the amount that can be potentially lent to you. You will need to explore all possible options for financing your new home purchase.
When looking for a new home, speak to your bank or mortgage broker to determine how much you can afford. A minimum of a 10% deposit is likely to be needed by first-time buyers today, along with additional funds, typically between £2,000 and £5,000, so that you can cover your expenses such as legal fees, survey costs and stamp duty (which applies on homes over £250,000 for first time buyers).
Because banks are continuing to be very cautious in their attitude to lending, it is essential to ensure that you have a good credit rating.
One of the benefits of being a first-time buyer is that various packages and services are available via the new homes market that only you can access. These include a selection of periodic Government-led shared equity initiatives that allow a first-time buyer to front just a percentage of the full purchase price, possibly as low as 25%, before gradually upping their share over time. This considerably reduces both the mortgage requirement and therefore the finance as a whole that you require to make a purchase.
A periodic range of deals are also on offer from developers to aid first-time buyers. These could include anything from financial assistance with paid legal fees to help secure the right mortgage or shared equity deals. Remember that there are always a number of solutions available to first-time buyers, regardless of the conditions of the housing market. Thousands of new and refurbished homes may be available through shared ownership or part-buy or part-rent schemes.
There are plenty of services available to aid first time buyers and other people at the lower end of the property ladder. With an affordable housing scheme, you may be able to purchase a home even when it is difficult to find credit and to obtain a mortgage, making it a great opportunity to buy a home that doesn’t cripple you financially.
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