Important Factors to Remember When Buying Your First House in the UK

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So, you’re ready to buy your first house? Congratulations! Your home will likely be the biggest investment you make in your life, so it’s important you know exactly what you’re getting into.

If you’re a first-time buyer, you may have a few questions about what you should do to prepare for the purchase, how to find the best home for your money, and how to be sure you’re getting a fair deal.

With a bit of preparation, you can make sure your first house purchase goes as smoothly as possible.

Read on for a few important factors to remember when buying your first house in the UK.

1. You Don’t Need a 20% Deposit

When you’re a first-time buyer, many people focus on the 20% deposit you’ll need to purchase a house. However, you don’t need to save up a full 20% to get started.

With the Help to Buy scheme, the government is willing to offer you an equity loan to cover the 20% deposit. This means that you’ll only need to save up 5%, and the government will loan you the remaining 15%. You’ll have to pay this loan back once you sell or refinance the house.

However, you’ll still have to pay the stamp duty on the purchase, which is a one-time tax that’s calculated based on the house’s market value. This can range anywhere from 0.5% to 12%, depending on the price of the house. It would be helpful to know the UK average house price for this.

2. You Can Pay with a Mortgage

In the US, the majority of people purchase a house with a mortgage. In the UK, this is not the case. Instead, the majority of people purchase their house with a cash payment.

To get a mortgage, you’ll need good credit and a decent income. If you don’t have a significant amount of income, you may have to rely on a guarantor, which is a person who agrees to repay the mortgage in the event that you can’t.

While this is a good way to get started, if you want to build up your credit, it may be worth going with a mortgage.

3. You Can Combine Your Deposit and Mortgage

If you’re taking out a mortgage for your first home, it may be tempting to take out a bigger mortgage to cover the 20% deposit. However, it’s actually better to take out a smaller mortgage.

For example, if you have a 20% down payment and a mortgage for 80%, you could end up with a higher monthly payment and a higher interest rate than if you took out a mortgage for 80% of the house’s value.

4. There Are Many Types of Mortgages

While mortgages are fairly common in the UK, there are many types of mortgages available for first-time buyers.

If you get a regular mortgage, you’re able to borrow up to 95% of a house’s value, as long as you have a 20% down payment.

With a shared ownership mortgage, you can get a mortgage that’s based on a percentage of a house’s value, rather than the full value. You’ll need at least a 10% deposit, but you’ll be able to get a loan covering the remaining value of the house.

But with a shared equity mortgage, you’ll get a mortgage based on a percentage of the house’s value. However, you can purchase an increasing percentage of the house as you pay off your mortgage.

There are many other types of mortgages, too. To find the best mortgage for your home, you should speak with a UK mortgage broker.

5. You Can Buy a House That Needs Work

It will be up to you to get it ready for living, if you’re buying a house that needs work.

If you’re looking to buy a house, you should ask to see the seller’s survey. This will give you an idea of what work needs to be done, and it can help you decide whether you want to complete the work yourself or hire someone to do it for you.

You’ll likely be able to negotiate a better price than if the house was in perfect condition, if the house you’re buying needs a little bit of work.

However, you should make sure you know exactly what you’re getting into before buying a house that needs work.

6. You Can Get a Survey Done

In the UK, a survey is a document that a professional will look over to check for any problems with a property. A survey is a big part of buying a house, and it’s something you should never skip.

If you’re buying a house, you should ask to see the seller’s survey. If the seller doesn’t have one, you should pay for your own.

A survey will tell you about the quality of the roof, the condition of the walls, and any problems with the foundations. It will also tell you about any hidden problems with the house, such as whether there are asbestos or lead problems.

Getting a survey done will help you determine how much work needs to be done, and it can help you negotiate a better price on the house.

7. A Letting Agent is Often Faster

If you’re looking to buy a house, you may be tempted to avoid using a letting agent.

However, it’s often faster to buy a house through a letting agent. A letting agent can help you find a house quickly, and he can negotiate on your behalf, so you can make a purchase as quickly as possible.

Using a letting agent can also save you money. If you’re in a rush to find a house, you can often avoid paying estate agent’s fees by going through a letting agent.

8. There Are Various Types of Property

There are many different types of property available when you’re looking to buy a house. While you might be tempted to buy a house with a garden, a parking space, and a garage, it’s important to remember that you can get a house without these features.

If you’re looking to buy a house, you should consider the type of property that works best for you. You may want to live in an area where the houses are old. If so, you may not want to buy a house with a parking space.

You can also buy a house with a garden if you prefer. However, you’ll have to consider the upkeep that comes with a garden. If you’re planning to rent the house out as an investment, you may not want to commit to a garden.

9. Your Mortgage Is Likely to Be Lower Than Your Rent

If you’re planning to move out of your parents’ house, you may want to consider buying a house instead of renting.

While buying a house is likely to be more expensive than renting, you’ll likely save money in the long run.

For example, if you’re renting a house for £900 a month, you’ll probably spend around £9,000 on rent each year. However, if you’re buying a house for £150,000, you’ll probably spend around £1,500 a year on your mortgage.

That means that after just a year, you’ll have saved £8,500 by buying your house instead of renting it.

To Sum Up

Buying a home is a big decision, and it’s important that you’re prepared for it. However, with a little bit of preparation, you can make sure your first house purchase goes as smoothly as possible.

Whether you’re a first-time buyer or you’re looking to buy a new home, make sure you’re prepared before you make an offer on a house. It’s important that you know exactly what you’re getting into before you commit to a mortgage.

If you’re looking for a new home, get researching today.