Tips For First Time Buyers To Help Get Them on the Property Ladder

19 July 2021

Buying your first home can be extremely daunting, especially due to the amount of money involved in the process.

Here are some tips for jumping on the property ladder..

1. How To Save for a House Deposit

Your deposit is often the biggest hurdle you will face as a first time buyer. Here are two steps that can help you save your deposit:

Moving back home with a family member or parents while you save for your deposit means you will save money on private rent and bills. Even if you pay a low rent to your family members you will still save money while there.

Renting a room in a house share rather than a property on your own – bills in Houses in Multiple Occupation (HMOs) are usually included also, this makes budgeting a lot easier.

2. Saving For a House on a Low Income 

Saving for a deposit on a lower income may take longer, however if you break it down it can seem far more realistic. 

Set monthly amounts you can afford to stick to when saving and make sure you try and stick to them. Sacrificing morning coffees or buying lunch out can help you stick to saving goals. By putting aside a set amount of money each month plus any additional money you can afford, you’ll see your deposit start to rise quick!

3. Reduce your Bills

If you are renting a flat or property, your bill payments and rent will almost definitely be your biggest outgoings, therefore if you save money on these you will be able to save more towards your deposit. 

Try to:

• Explore the market for cheaper energy providers and switch to them
• Attempt to find a cheaper broadband deal
• Shop supermarket own brands, these are often cheaper than big brand names
• Try and find voucher deals online and make the most of them
• Look into petrol/diesel prices and use the cheapest one

4. Pay Off Any Debts

Outstanding debt can affect the amount you can borrow from a mortgage lender for purchasing your own home. Attempt to get credit and store cards paid off before you start looking into mortgage options.

This will not only increase your borrowing potential but it will also show your potential lender than you are sensible when borrowing money. 

5. Credit Score

When you first apply for a mortgage, your potential lender will assess you with a credit score. Your credit score helps your lender decide if you are a suitable person to loan money to, therefore a healthy score can make the mortgage process easier.

You can always access your credit report at any time and you should do so before applying for a mortgage. If your credit score needs improving, make sure you are keeping on top of paying bills such as your mobile phone contract and broadband in full and on time. Missing payments can have a huge negative impact on your score.

6. Boost Your Income

Even if you have a full-time job, there are other things you can do to boost your income and save quicker.

Why not try:

• Online shopping cashback
• Cashback credit cards
• Selling items you no longer need
• Getting a second, or temporary job

7. Car Finance

Having a car on finance will affect your mortgage borrowing ability as it is classed as debt. Car finance is also a regular monthly payment that could affect your saving ability, perhaps consider buying an older car for cash if you have the money as this could help you save in the long run.

8. Be Patient and Don’t Rush In to Things

Getting in a position to buy your first home can take time so remember and be patient. It is always better to be in a good place financially instead of rushing in or borrowing more than you can afford as this can result in future problems. 

9. Future Value

It is unlikely your first property will be your forever home, so think ahead and buy a property that will help you take a further step on the property ladder in the future. Purchasing a house that will sell easily and is likely to raise in value will mean a quicker route to your next property when you decide to buy again. 

Always remember, buying a property close to good schools or east transport links such as railway stations will, more often than not, place a premium on your property’s value compared to others.