In 2022, there has been an increase in people wanting to buy their first home.
This is partly due to crashes in the value of homes relating to the pandemic of 2020 and lower than ever interest rates. So, if you have been waiting for the right time to buy your first home, this is it!
But purchasing a home can be daunting. Especially your first one. Some things you will need to know when buying your first home in the UK are listed below.
Mortgages
A mortgage in the UK is generally a loan that is taken out to buy either property or land. The standard time that a mortgage lasts in the UK is 25 years. When you are a first-time buyer, you may be able to get a different kind of mortgage. Rather than someone that is adding to their property portfolio. You will need to save up around 5% of the property value to take out a mortgage. Either a bank or a mortgage lender can offer mortgages to match your budget. The most suitable type can be determined before you take out a mortgage. This can be done when you visit a conveyancing specialist. This should be done at the beginning of your home buying process.
Deposits
Before you begin looking for a home to buy, you will need to save a deposit. There are different types of mortgages. Different ones allow for different percentages of the property value. Saving more than 5% will give you a wider range of mortgages to apply for. This is especially important if you are looking for a cheaper mortgage.
Government Schemes
In the UK and Wales, there are many schemes to help first-time buyers get onto the property ladder. One of the most well-known options is the affordable homeownership scheme. This allows people to get a loan to help with the cost of a new build. It can allow you to get a home through shared ownership across the UK. Council or housing association tenants can buy their property through this scheme too.
Are you uncertain about which of these may apply to you? Seek the advice of a solicitor who is knowledgeable about the purchasing of property.
Solicitors
When you are buying your first time, there is going to be a lot of paperwork and a lot of technical terms to understand. This is why it is important to seek the advice of a solicitor. Many solicitor firms can help first-time buyers with everything from completing paperwork to applying for mortgages. They can even conduct surveys of properties. They can liaise on your behalf with the sellers to ensure that you get the right deal. So, they can be worth their weight in gold!
Stamp Duty
In the UK, if you are a first-time buyer, you will need to pay stamp duty land tax. This only applies if your property is worth over a certain value. If you are a first-time buyer, you get a discount. This means you pay less or no tax if the property is worth £500,000 or less.
