First-Time Buyers: How to Step onto the Property Ladder

by | Apr 16, 2019 | Finance, Home

While becoming a homeowner might seem beyond your reach, it doesn’t need to be with a little know-how.

If you are willing to commit to saving and improving your credit score, you could soon receive the keys to your very first house or flat.

If you are a budding first-time buyer dreaming of owning your own home, find out how to step onto the property ladder.

Start Saving for Your Dream Home

Most property buyers are often required to pay a 20% deposit, which is based on the price of their home.

While it can take a number of years to save, owning your own home could prevent you from wasting money on rent for decades to come.

What’s more, the government now provides a Help to Buy ISA, so they will add a 25% bonus onto the money saved, which could help you to move into your own home at a faster rate.

Consult a Mortgage Advisor

If you’re unsure whether you’re eligible for a mortgage, consult an experienced mortgage advisor.

Thanks to their extensive knowledge in the field, they can review your income, debts and deposit to identify how much money you can borrow for a mortgage.

Also, if you’re not a great candidate for a mortgage right now, they can provide informative advice on the steps you need to take to qualify, such as reducing your debt, improving your credit history, or saving for a bigger deposit.

Research the Best Areas for Your Budget

The last thing you will want is to fall in love with a property or neighbourhood only to discover it’s outside of your price range.

To ensure you find your dream home in a great location, you must thoroughly research different areas in your chosen city or town to avoid disappointment.

For example, for those who are London based, if you need help finding an ideal property in the big smoke that fits your criteria, get in touch with experienced estate agents in East London in order to take your pick from stunning homes and apartments.

Improve Your Credit Rating

If you have missed debt repayments throughout the years, it’s likely you don’t have a great credit score. If so, you’ll need to find ways to improve your credit rating to increase your chances of securing a mortgage.

For instance, you must:

  • Pay every bill on time
  • Make debt overpayments (try to reduce a balance as much as possible)
  • Close unused credit and store cards
  • Register on the electoral roll
  • Avoid using gambling websites
  • Build a credit history with a credit card (buy an item with the card and repay the debt immediately)
  • Disassociate yourself with a financial partner with a poor credit history

Organise Your Paperwork

While you’re saving, aim to organise as much paperwork as possible, which can remove some of the stress when the time comes to apply for a mortgage.

For example, most mortgage providers will request copies of your ID, bank statements, utility bills and proof of salary before they will provide a mortgage in principle.

Read through our useful guide for more information

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