House prices in the UK continued to soar through 2021, peaking at an incredible £276,091 in December.
This represented an annual increase of more than £24,000 over the course of the year, and while a correction is being forecast in 2022, it’s still incredibly hard for first-time buyers to secure a footing in the market.
So, here’s a brief step-by-step guide to buying your first home, as you look to achieve greater security and value for your hard-earned money.
- #1. Save for a Mortgage Deposit: You should start saving for a mortgage deposit as soon as possible, as this minimises the amount you need to borrow and future repayments. Aim to save a minimum of 10% and ideally 20% towards your deposit, as building a large sum of cash will help you considerably going forward.
- #2. Research Your Chosen Area: You should then identify the most viable areas in terms of budget and your precise living requirements, such as schooling, amenities or the local transport links (if you commute to work outside of the area).
- #3. Choose Your Property: The next step is to identify one or more potential properties in your chosen area. Here, you can identify old and new builds near you, while focusing on homes within your financial means and maintaining several options prior to making offers.
- #4. Make an Offer: You can make an offer on one or more of your potential homes, based on survey information and prevailing market value. Your offer may be lower than the list price, and you should be willing to negotiate while having clear boundaries in terms of your budget and value.
- #5. Apply for a Mortgage: The next is to apply for a mortgage, and we’d recommend liaising with a licensed broker to help in this respect. This will help to guide you through the process and ensure that your application is processed as quickly as possible.
- #6. Hire a Conveyancing Solicitor: The buying process will also require you to liaise with a conveyancing solicitor, who can help to minimise delays in the chain and the costs associated with buying a property.
- #7. Exchange Contracts: The final stage of the process is to exchange contracts with the vendor, with the property value held in escrow transferred to the vendor once the transaction has been completed.
The Last Word
At this stage, all that’s left is for you to move in and start your brand new life, as you look to decorate and furnish your property and start to meet the neighbors!
Just remember to start planning and saving for a future house purchase as soon as possible, while we’d also recommend liaising with a mortgage broker proactively to help you identify the very best deal and repayment terms!