First Time Buyer Guide

First Time Buyer Guide

If you have decided you would like to own your own home, then you have come to the right place. As local property experts in the Cardiff area, there are ways in which we can help to make the process easier for you.  We have put together a First Time Home Buyer Guide, which breaks down the process step by step, designed to help you every step of the way.

Deposit

Before you begin to search for your perfect property, you should have a healthy deposit available in order to take the next step. Generally you need to try and save between 5%-20% of the cost of your ideal home. For example if you like to buy a home that costs around £150,000 you’ll need to save at least £7,500. Saving more than this amount will make it easier for you to apply for a wider range of cheaper mortgages.

Mortgages

There are many different mortgage deals on the market, so it can appear overwhelming at first choosing the right one. It’s worthwhile doing your research and check the different mortgage rates and lengths of mortgages. There are many mortgage advisors in the Cardiff area that can assist with the mortgage process and setting up a mortgage in principle. We can recommend some mortgage advisors at this stage if required.

Monthly Repayments

Ensuring you can afford the monthly outgoings of the mortgage is one of the most important things you need to consider. It is worthwhile creating a budget of your monthly outgoings, taken into consideration mortgage repayments. As part of the mortgage application process you will need to prove to the lender your income and outgoings. As well as the mortgage repayments, there are other costs associated with owning a home. Including, surveyor’s fees, stamp duty land tax, solicitor’s fees, removal costs, furnishing the property and insurance. For more information on Stamp Duty Land Tax click here.

Help to Buy Schemes

Thankfully there are a number of government backed schemes targeted specifically for first time buyers, providing help to those trying to get on the property ladder. You may find a scheme suitable for your requirements and there are many to choose from. Find out about Help to Buy Schemes by clicking here.

Freehold Vs Leasehold

A freehold is when you own the land the property is situated, therefore if you are buying a house you will more than likely look to purchase the freehold at the same time. On the other hand if you are looking to purchase an apartment, you will be buying the leasehold or buying a share of the freehold. Whether you the property is freehold or leasehold should be on a property listing and if not, this should be one of the first questions you ask the estate agent, so you know what exactly you are purchasing.

Application process

When you apply for a mortgage, the lender will request information or evidence proving you can make the payments should interest rates rise or your financial circumstances change. You will need to prove your income along with evidence of outgoings including, debts, credit cards, bills and other living costs such as childcare etc. Your mortgage lenders will most likely ask for payslips and bank statements to support this, as well as proof of identification. If you are self-employed, you will be required to provide tax returns and business accounts.

Guarantor

If you are finding it difficult getting a mortgage for your first home then you can always consider a guarantor mortgage. A guarantor mortgage is when a parent, guardian or relative agrees to be responsible for the mortgage repayments should you be unable to meet them. Guarantor mortgages should not be taken lightly as they are legally binding arrangements.

Co-Buying

If you are looking to purchase a property have you considered buying with a partner, sibling or friend? This can be a more economical way of getting on the ladder as there is someone else to share the financial burden with. The finer details of who is paying what and what percentage each party owns should be discussed prior to make any commitments.

 

Keylet offers lots of properties available to purchase in Cardiff and the surrounding area. If you would like to purchase a property please contact us on 02920489000