The market is becoming increasingly difficult for first time
buyers and with the average starter home in the UK priced at £215,000, it isn’t
easy to get a foot on the property ladder.
Here are our five top tips for first time buyers:
1
Carry out research
There is a great deal to consider when buying a home in
regards to the local area and amenities such as transport links, schools, shops
etc. You also need to think about future developments in the area so that the
property will still appeal to future buyers, if you choose to move on. The more
knowledge you have, the greater chance you have of making a better return on
your investment in the future. Property in areas thought to be ‘up and coming’
such as Streatham, West Ealing and Stockwell is more affordable in comparison
to the rest of the capital.
2
Think about your credit score
Mortgage applications can be greatly affected by your credit
score, so before making an application, be sure to be aware of what your credit
score is. Look at ways that you can improve and protect your credit score and
avoid things such as applying to multiple credit agencies which can harm your
rating rather than improve it. A poor credit rating can trigger alarm bells for
banks and building societies who are already cautious of who they lend too.
Consider taking a few months or even a year to improve your score before making
an application and trying to purchase a property.
Understand prices
In addition to researching the area itself, you should also
try to get an understanding of the average price of similar properties in the
area. Property sites like Zoopla now include information on properties sold and
under offer in the area which can provide a useful benchmark. The Halifax House
Price Index is also a useful tool for comparing regional house prices.
Look in to Help to Buy schemes
Government funded equity loans are open to both first time
buyers and home movers on new-build homes in England (with a purchase price up
to £600,000) and many require as little as a 5% deposit.
Following the recent announcement of a new, London specific Help
to Buy scheme, there are more options now available for first time buyers who
may otherwise not have been able to afford a home in the capital.
Visit www.helptobuylondon.co.uk for more
information.
5
Think about location carefully
For many first time buyers, purchasing a property in London
is simply not affordable. Therefore, it is a good idea to look slightly further
afield at other potentially profitable property hotspots. Areas such as Essex,
Hertfordshire and Kent are fast emerging as new hotspots.
Where ever you decide to buy, get great value home insurance
from Discount Insurance – call 0800 294 4522 today!
