09 December 2015

Posted by Discount Insurance on Wednesday, December 09, 2015
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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:

      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.

      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.

       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!