The average price of a home in the UK in 2018 was already at more than £245,000, and if you are a first-time home buyer and you are thinking of how you can make enough funds for such a hefty amount, then you’re definitely not alone. Prices may have decreased a little bit in some areas, however, so this can be a great opportunity to buy your first home or property. But you also want to make sure that you are getting a nice deal when you purchase your first property, and you also want to improve your chances of acquiring the home you really want and need. So are you a first-time property buyer? Here’s what you should remember.
Take advantage of ways to increase your deposit
It’s common sense – the higher your deposit, the better your deal will often be because your interest rates will be lower as well. It’s essential to pay attention to your deposit amount. But it’s not that easy for first-time property buyers to acquire a good deposit, and this is where some schemes can help. For instance, if you want to boost your deposit savings, you can open a Lifetime ISA or LISA, and this can help top up your savings to as much as four thousand quid a year. If you are between the ages of 18 to 39, you can open your Lifetime ISA and purchase your property with help from this. Your Lifetime ISA contributions can be enhanced by a bonus from the government of up to 25%, which makes coming up with a higher deposit a much easier thing.
Pay attention to your credit rating or score
Another thing you can do so you can get a better deal on your new home would be to pay attention to your credit rating or score, as confirmed by the expert estate agents in Colchester from Beresfords. Once you request for or apply for a property mortgage, financing services will look closely at your credit rating and history so they can assess how you have managed, especially in terms of borrowing. They will then use this data to decide on whether they should accept your application – or deny it.
To get a copy of your rating, you can go to either ClearScore or Experian, and make sure the information they have on you is updated and correct. Before you submit your application, you should figure out how you can improve your rating. For instance, make it a point to pay your bills on time, and close those accounts that you haven’t used in a while or don’t use at all. If you don’t have any borrowing history, you may want to apply for a credit card, make purchases, and then pay off the full balance every month.
Consider schemes from the government
You can also consider schemes offered by the government, such as the Help to Buy programme. It involves different parts, such as the equity loan, which lets you put in a deposit of 5% and the government then loans you 20%, which is interest-free for the first 5 years. Another part of the Help to Buy programme is shared ownership, which gives you the opportunity to buy from 25% to as much as 75% of a piece of property, and then simply settling the rent on the portion you will not own.
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