First time buyers

The property market has changed a lot over the last few years. This could make it difficult for many people to afford to buy a home. This is a problem particularly faced by first time buyers.

Getting on the ladder

It is, however, still possible for first time buyers to get onto the property ladder and there are actually some advantages to being a first time buyer:

interest rates are at their lowest for more than 30 years
first time buyers are more appealing to sellers because they are not in a chain - not part of a long list of people all dependent on each sale in a chain going through on time
first time buyers are much sought after by mortgage lenders

Buying a home for the first time

The current financial climate has made it difficult for many people to afford to buy a home. This may be a particular challenge for you if you are a first time buyer, as you will have many one-off initial costs including:

a deposit
Stamp Duty Land Tax
surveyors’ fees
lenders fees and charges
Land Registry fees
removals/or moving in charges

If you are thinking of buying a house for the first time, make sure that you have planned for all the costs that you will face:

Planning for buying a home (Money, tax and benefits section)

Finding the right mortgage

Most mortgage lenders require a deposit of at least five to ten per cent of the value of the property you wish to buy. As the price of property increases, the deposit can become expensive. You may want to consider asking family or friends for financial help. There are many types of mortgages available and some are targeted specifically at first time buyers. Read the guide to mortgages from the link below to find out how the mortgage system works and where to get financial advice on mortgages.

Mortgages (Money, tax and benefits section)

Buying a home with others

You may want to think about buying a home with other family members, friends or a partner. Buying with others can be a solution to coming up with the deposit and sharing costs. It's important to carefully think about what might happen if circumstances change and one of you wants to sell their share of the property. You should get legal advice and draw up an agreement as to how property will be divided in case of death, or if one of you decides to give up their share in the property.