For most people looking to jump on to the property ladder, the first thing they need to do is save – and it’s never too early to start.
The obvious thing for first time buyers to save for is the deposit. A minimum of 5% deposit will help find a small number of mortgage lenders willing to lend. But there’s not many out there at the moment, and their criteria to lend will be very tight. Far better to have savings to cover a deposit of 10% – this will open up more lenders and better rates to help you with your first home.
The deposit will be the main aim for your savings, but don’t forget the other costs you’ll incur in buying your first home.
A standard valuation will cost you around £300 with a Homebuyers report on older properties costing upwards of £600. Then you’ve got solicitors fees – aim to pay around £1200.
Don’t know a man with a van? – You’ll need to dip into your savings to cover removal fees, with the average cost of packing and moving into a three bedroom house 50 miles away setting you back approximately £1200. You may save on removals if you don’t have much to shift – however, that means you’ll be putting your hand in your pocket again to furnish your new home!
Once you’re safely in your home, things can still crop up. The boiler might go, you may suddenly notice the leaky roof or your DIY goes wrong. It’s always best to have an emergency fund of around £1000 ready for what life can throw at you as a new homeowner.
We recently held an online event for First Time Buyers to answer any questions you may have about buying your first home. For a link to watch the replay please enter your name and email address and we’ll send it over to you. Or get in touch to book a free advice session by phone or video call to talk through anything you aren’t sure about.
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