From mortgages to budgeting, to hidden fees, buying your first property can be a scary and stressful process.
Especially if finding your dream home has been on the cards for years; it’s just been a matter of timing, saving and getting it right after countless viewings – not to mention the anxiety of being gazumped after your offer has been accepted.
To guide you through the ins and outs, property experts at national housebuilder, St Modwen Homes, have collated the key must-know, cost-effective tips for first-time buyers…
How to get a lower interest rate
“It’s no secret interest rates have been a popular conversation topic over the past few years,” notes Jo Winston, who looks after sales at St Modwen Homes.
“And even though mortgage rates dropped in the second half of 2023, the average rate has stood still at 5.25% for the last nine months.”
However, what many house hunters don’t know is they can actually secure a lower interest rate without having to wait for them to drop, reveals Winston, especially if you’re looking at new-build homes.
“Using initiatives such as the brand-new Own New Rate Reducer, buyers can secure up to 3% lower interest rates on mortgages when buying a new-build home.
“The Own New initiative, offered by some housebuilders across the UK, allows purchasers to access mortgages with significantly reduced interest rates, meaning they can save hundreds of pounds per month on their mortgage payments.”
Buying schemes for first-time buyers
“Many first-time buyers are unaware there are a range of great buying schemes available which can make it easier, and less expensive to get onto the ladder,” advises Winston.
“For example, some new-build developers offer a 5% deposit contribution on certain homes, whereby they’ll gift you 5% of the property’s value to go towards your deposit.”
She continues: “This means you’ll only need to put down the other 5% to make up the 10% deposit, so you don’t have to save as much.”
Another offer sometimes available (depending on the developer) is a financial contribution towards the finishing touches, says Winston. “Including new flooring, integrated appliances or even an upgraded kitchen.”
Thanks to the various schemes available, she suggests you’ll be able to purchase your first home quicker whilst saving money.
How to speed up the house buying process
The house buying process can be lengthy, especially if you’re in a chain. So, if you want to help speed this up, she recommends:
Get a pre-approved mortgage – this will show estate agents you’re financially prepared.
Opt for a new build – by purchasing a new build, you won’t be in a chain which means you can move in as soon as the home is complete.
Keep in touch with your solicitor – by regularly checking in with yours, you can stay up to date with the latest updates and this can often prevent delays.
Be organised – have all your documents (ID, proof of income, bank statements) ready to go.
What to budget for when buying a house
“When buying a house, it’s easy to focus on the deposit and mortgage, but there are some other costs to consider too,” warns Winston.
“The first is stamp duty. However, first-time buyers won’t pay any stamp duty as long as the property costs less than £425,000.
“Other additional costs include legal fees which are usually £850-£1,500; local searches which are approximately £250-£300, as well as removal vans and home insurance.”
There may be some other fees involved as well, so Winston says it’s important to do your research to make sure you’re financially prepared.
House moving hacks
To make your move as smooth as possible, there are three key things to remember…
Declutter before you pack: There’s no better time to have a big clear out and get rid of items you no longer need, says Winston. Take them down to the local charity shop, or even sell some things on Vinted to make a few extra pennies.
Label your boxes: Write the room they belong in and a brief description on every box so you know what’s in each of them. “You’ll thank yourself when you get to your new home and start to unpack!”
Pack an essentials box: “Include items you’ll need immediately, such as toiletries, a change of clothes, and important documents, so you aren’t rummaging through boxes after a busy day of moving.”