Attention First Time Buyers!!
Buying your first home is a major milestone, but it’s no secret that the process can feel daunting. From understanding financial jargon to navigating a competitive market, it’s easy to get overwhelmed. But don’t worry—with the right tools and resources, your path to homeownership can be smooth and even enjoyable.
Financial Opportunities Designed for First-Time Buyers
Help to Buy: Equity Loan
The government’s Help to Buy scheme offers an equity loan to first-time buyers purchasing a new-build home. You can borrow up to 20% (or 40% in London) of the property price interest-free for the first five years.
Shared Ownership
Shared ownership allows you to buy a share of a property (between 25% and 75%) and pay rent on the rest. This scheme is a great way to get on the property ladder with a smaller deposit.
Lifetime ISA
A Lifetime Individual Savings Account (LISA) lets you save up to £4,000 a year, with the government adding a 25% bonus to your savings. These funds can be used towards your first home or retirement.
First-time buyers purchasing a property worth up to £500,000 are eligible for reduced or no Stamp Duty. This can save you thousands when buying your first home.
Smart Tips to Navigate the Homebuying Process
Get a Mortgage Agreement in Principle
A mortgage agreement in principle from a lender shows sellers that you’re a serious buyer. It also helps you understand your budget, so you can focus on homes within your price range.
MARKET UPDATE
Select sub-4% deals returning but overall average mortgage rates are stable. Rightmove figures show that, last week the average two-year fixed rate is 4.81% and the average five year fixed rate is 4.7%, which are drops of 0.04% and 0.03% week-on-week and 0.42% and 0.13% year-on-year. The cheapest two and five year fixed rates currently stand at 3.86% and 3.89%, which are drops of 0.6% and 0.24% annually.
Average two-year fixed rates at 60% LTV are cheaper than five-year deals for first time since mini-Budget. The average two-year fixed rate at 60% LTV is 4.18%, while the average five-year fixed rate at the same LTV tier is 4.19%. These are weekly drops of 0.07% and 0.03% respectively, with the two-year fixed rate down 0.49% and the five-year fixed rate lower by 0.1% annually.
Lenders have relaxed affordability stress tests giving borrowers access to higher loan amounts.
Work with a Trusted Estate Agent
An experienced estate agent can guide you through the process, from finding the perfect home to negotiating the best price. Look for someone who understands your needs and has local expertise.
Research the Market
Knowledge is power. Take the time to research neighbourhoods, school catchment areas, and market trends. This can help you make informed decisions and spot a good deal when you see one.
Factor in Additional Costs
Don’t forget to budget for conveyancing fees, home surveys, and ongoing expenses like maintenance and utilities. Planning for these costs will help you avoid financial surprises.
Fun Facts and Inspiration
Did you know that first-time buyers now make up about 45% of the housing market in England? You’re not alone in this journey!
One of the most satisfying feelings for first-time buyers is decorating their new space. It’s your chance to make a house truly feel like home.
Studies show that homeownership contributes to long-term financial stability and a sense of community belonging. Your investment today could pay off in more ways than one.
Ready to Take the First Step?
Your dream home is within reach, and the opportunities to make it happen are better than ever. By taking advantage of available financial resources and following these practical tips, you’ll be well on your way to unlocking the door to homeownership.
Stay tuned for more insights and updates to help you navigate this exciting journey. Remember, every great story starts with a first step—and yours starts here!
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