A Simple Guide to Buying Your First Home

Buying your first home can be a daunting process. There are many things to consider when getting on the property ladder, from how you’ll finance your property, to the type of home you’re going to buy, what insurance you need to take out and much more.

For someone who’s never done it before, it can seem like a huge hurdle to jump over, however by creating a systematic approach for buying your first home, it can become much more manageable. 

Below, we’ll take a look at the top things you need to keep on your radar in this simple guide to buying your first home. 

Buying vs. Renting

If you’re looking to buy your first home, the chances are you’re already living in rented accommodation or living with parents. You may be considering renting for a little longer to continue building your deposit for a bigger home, however there are many benefits to getting on the property ladder sooner rather than later.

Not only does buying a property immediately increase your net worth, it offers a stable long term investment that will continue to increase in value as you own the property. Buying can also significantly lower your monthly outgoings as quite often, monthly rent is much higher than the price of a long-term mortgage. 

Financing Your First Home

There are a number of ways to finance your first home, with options to suit a variety of budgets. So whether you’re short on the deposit but have enough in monthly income, or don’t quite cut it in terms of income but have the deposit, there’s some options below.

• Open a Lifetime ISA

A lifetime ISA is a long-term savings account that helps you save for both your first home and your retirement. The best part is that when you put money in, the government too. One thing to be aware of though is that there are restrictions on what that money can be used for and when you can access it. 

• Shared Ownership

If you’re struggling to raise enough capital to purchase a full home, an option could be to purchase a shared ownership property. Shared ownership properties enable you to own a portion of the house (often, you can decide how much), with the opportunity to purchase more of the property later down the line.

• Help to Buy Scheme

The Help to Buy scheme is a great option when you can’t quite gather enough deposit or get a large enough mortgage. The Help to Buy equity loan enables you to borrow up to 20% of the value of the property (40% in London), helping you to own your own home a little sooner.

Furnishing Your Property

Affording your first home is all well and good, but don’t forget to save some funds to furnish it too. If you’re running low on space in your first home, there are some great options around for budget friendly and space saving furniture that doesn’t compromise on quality. The Divan Beds Centre has some excellent choices for multi-purpose furniture that also allows you to store things away out of sight. 

Consider the Monthly Costs

Not only do you have to factor in the cost of your mortgage, but there are also many other costs associated with owning your own home. Such costs can include:

• Home and car insurance (and premiums)
• Utility bills
• A TV license
• Internet and phone line rental
• Home maintenance costs
• Council tax

Location, Location, Location

Location is incredibly important when it comes to owning your own home. Be sure to keep in mind things like the commute distance to work, the local neighbourhood and the Ofsted rating of schools in the local area if you plan on starting a family, and the council tax band for your neighbourhood. 

Overall, there are a lot of things to consider when it comes to owning your own home. However, by taking it one step at a time, you’ll be sure to stay relatively stress free and be in your own home in no time.