Advice For First Time Buyers

Climbing the property ladder for first time buyers can sometimes be a hazardous and worrying step to make, filled with hundreds of different options to decide and select from.

Here at Charles Rose Properties, we’re no stranger to the dynamic world known as the property market. Having served the Warwickshire county for years in buying and selling homes in Warwick, Leamington Spa, Stratford-Upon-Avon and surrounding areas, our team of local estate agents share our advice to buying your home, for first time buyers.

Mortgage Deposit

If you intend to purchase a house through a mortgage, our first piece of advice is to begin saving for a deposit. Typically, the more money you offer as a deposit, the better the mortgage rate will be.

Mortgages can be obtained from as little as 5-10% of the cost of the property, better rates are offered on deposits of 25% or more. According to Finder, the average deposit placed by a first time buyer in the past year was £46,200, compared to average price of a home purchased by a first time buyer (£231,500), it works out that the average first time buyer saved a 20% deposit for their first home.

Mortgage For First Time Buyers

A loan for the price of a house may sound daunting, which is why our next bit of advice is to do as much research as possible.

Approach banks and building societies and enquire into the mortgages they offer, also take the time to consult the services of a mortgage broker. Some brokers will consider mortgages from all types of lenders, however, most will charge a consultation fee. Whichever way you obtain a mortgage, securing an ‘agreement in principle’ is a great way to show the estate agent that you’re a serious buyer.

Stamp Duty For First Time Buyers

Stamp Duty Land Tax (SDLT) is a tax paid when you buy property over a certain value in England, Wales and Northern Ireland. Fortunately, a Stamp Duty Land Tax holiday was implemented by the Chancellor, Rishi Sunak, starting from 9th of July 2020 and concluding on 31st of March 2021.

This doesn’t necessarily mean much for first time buyers, as buyers are exempt from Stamp Duty Land Tax for properties up to the value of £300,000. For properties up to the value to £500,000, no Stamp Duty is paid for the first £300,000.

Read more about what the stamp duty holiday means for you here.

Other Costs For First Time Buyers

Take into consideration other costs associated with buying a home. Most lenders will charge you for entering into a mortgage agreement, known as an arrangement fee. You may also be asked to cover the cost of the valuation of the property, known as a valuation fee. Finally, once you’ve made a decision on the house you want to buy, always inspect the structure and walls of building before going ahead with the purchase.

Thinking about buying a new home? Browse our houses for sale in Warwickshire or contact us to discuss your needs.

Thinking about selling your home? We achieve the best possible price for our clients. Find out more or contact us for a free no obligation valuation. You can also follow us on social media to stay up to date!